Sales Territories

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SIE 415-515 Technical Sales & Marketing

Homework 3: Sales Territories

Individual Assignment

1. Read Futrell, Chapter 6, Design and Size of Sales Territories, on D2L Content.

2. Of the two approaches to sales territory design (the breakdown approach and the equalized workload approach, as depicted in step 3 in the model), which of these two approaches do you think would be more effective for a sales team that is selling a technologically complex product or service? Why would this be the case, in your opinion? Thoroughly explain and document your reasoning.

3. You are a Technical Salesperson. Complete the following Time and Territory Exercise. Develop answers to Questions A and B in a way that makes optimal use of your time (Days 1 and 2) and your sales manager’s time (Day 1 only). Realize that you can use the time with your Sales Manager to develop your professional relationship with your Sales Manager. Be sure to show your sales call pattern and total sales potential for each of the two days.

Scenario: Your sales manager is working with you tomorrow only, and you want to call on (which means to visit) your customers with the greatest sales potential during the time that your manager is with you (see Table 1). Because you are paid on commission, you will have the opportunity to maximize your income for that day. The area of your territory that you feel should be covered tomorrow contains 16 customers (see Figure 1).

Table 1

Customer	Sales Potential	Customer	Sales Potential
A	$ 4,000	I	$ 3,000
B	$ 3,000	J	$ 2,000
C	$ 6,000	K	$ 10,000
D	$ 2,000	L	$ 12,000
E	$ 3,000	M	$ 8,000
F	$ 8,000	N	$ 9,000
G	$ 4,000	O	$ 8,000
H	$ 6,000	P	$ 10,000

To determine travel time, allow 15 minutes for each side of each small square. Each sales call takes 30 minutes. You can leave your house (at Start) at 8:00 AM or later. Time for lunch must be taken in 15-minute blocks of time (for example, 15, 30, 45, or 60 minutes). Your last customer cannot be contacted after 4:30 PM in order to allow enough time for the sales call. Your customers do not see salespeople after 5:00 PM. Travel home can be completed after 5:00 PM.

Figure 1

Your favorite restaurant

Start

(A) Develop the route that gives the highest sales potential for the day that your manager works with you.

(B) For the next day, develop the route that will allow you to contact the remaining customers in this part of your territory.

4. Submit your document to the D2L Dropbox prior to class by the due date.