2_.Sales Territory 04

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					Organizing Sales Territories
Perri Cebedo and Associates California U.S.A.

Organizing Sales Territories


Advantages of Well-Planned Territories
• Better coverage of physicians with good prescription potential. • Better service when responsibilities of each Rep are clearly defined. • Shorter travel and waiting time reduce promotion costs. • Improved morale and team spirit.
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Guidelines for Creating Territories
• • • • • • • Profitable to the company Profitable to the PSR Clearly defined Equitable Manageable Self- contained Transportation accessible
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Factors for Creating Territories :
Population concentrations Economic conditions Cities/towns of highest potential Location of most important doctors, pharmacies, hospitals, wholesalers • Transportation and communication facilities • Socio- economic and healthcare developments
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Balancing Sales Territories
• Balance territories according to sales potential and difficulty: – The number of doctors and their prescription potential. – The number of hospitals and their importance. – The number of pharmacies and their importance. – Travel time, the amount of time away from home and travel expenses. • Divide urban and rural communities so each territory contains a similar balance of city and country doctors.

Organizing Sales Territories


Shaping Territories
• The shape of a territory affects communication, efficiency, and productivity. • The Circular Pattern • The Wedge Pattern

Organizing Sales Territories


The Circular pattern
• The planning of sales calls is simplified. • Travel time is minimized; Sales Reps can usually return home in the evening. • Communications may be more difficult because only one Sales Rep lives near the Field Manager's office. • Difficult to provide all Reps with a fair balance of urban and rural areas in their territories.
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The Circular Pattern

Organizing Sales Territories


The Wedge Pattern
• Communication, meetings, and performance follow-ups are simplified. • Territories can be divided more fairly, providing each Rep with a balance of urban and rural areas. • Distances to the outer boundaries of the territories are greater; requires more travel time and overnight stays in hotels. • Planning of itineraries may be more complicated because of the distances.
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The Wedge Pattern

Organizing Sales Territories


Assigning Territories
• Match Sales Reps with territories :
– – – – – Merit Capacity (KSA´s) Personality Residence Personal Preference
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Guidelines in Assigning Territories
• Always "sell" the new territory • Be honest about territory difficulties and problems • Present "problems" as "challenges" • The Sales Rep must express a desire for the new terrritory
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Planning Itineraries
Sales Reps should know their territories thoroughly – Visit Major pharmacies to obtain MD info – Use waiting room time to verify locationsand MD addresses – Inquire from other Reps • Itineraries should be planned to minimize expenses and travel time •

Organizing Sales Territories


In rural areas…
• Arrive in each town with time to see all of the doctors and clients on the call sheet. • Travel during nonproductive hours. • Choose the most effective route to minimize travel time. • Assign the frequency of each trip by its level of importance.
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In urban areas…
• Visit doctors in the same neighborhood or suburban area. • Visit groups of doctors on foot to reduce traffic and parking problems. • Schedule visits for times when the doctors usually receive Sales Reps.

Organizing Sales Territories


Rotating Territories
• What are the advantages/disadvantages of rotating reps or territories? • How often should you rotate? • Why would you rotate? • When would you rotate?
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Population concentrations Economic conditions Cities/towns of highest potential Location of most important doctors, pharmacies, hospitals, wholesalers • Transportation and communication facilities • Socio- economic and healthcare developments
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Checklist Field Organization
• A) – – – – – – – Do all territories have the following characteristics: Profitable for the company? Profitable for the sales representative? Clearly defined? Equitable sales potential? Manageable? As self-contained as possible? Is the representative located to optimize transportation facilities?
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Checklist Field Organization
• • • • Is there an adequate span of control between the field sales manager and the sales representative? Are all areas with significant sales potential adequately covered? – If no, should new territories be established? Are any areas with a low sales potential over covered? – If so, should any territories by closed down? Have sales representatives been adequately involved in gathering and evaluating information on the territories and in the decision-making process? Do the sales representatives understand and accept changes decided upon?


Organizing Sales Territories


Checklist Field Organization
• A) of: – – – – – B) C) D) – – Have sales representatives been assigned to their regions on the basis Experience and capabilities? Preferences—if they are deserving? Matching personality traits with geographic characteristics? Character of the doctors and clients in the region? Disadvantages of uprooting representatives? Are the sales representatives being rotated frequently enough? Are they in a rut? Have they fallen into bad habits? Would a change stimulate them? Would a change contribute to their professional growth?
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Description: DM Training, Field Sales Management, Sales Supervisors, Leading Sales Teams