Opportunity Management

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Opportunity Management

• Managing within a Sales Territory

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• Sales Force Productivity
• 1. Background
• A. Prior Focus on SP Effectiveness
• 1. Knowledge
• 2. Interpersonal Skills
• 3. Selling Skills

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• B. Focus on Territory Management
• Territory group of customer/ potential
  customers assigned to a salesperson.
• How do I spend my day-
• 1. Generating New Accounts
• 2. Managing Existing Accounts
• 3. Time Management
• e.g., selling time vs non-selling

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• Focus is on the salesperson but obvious links to
  management.
• 1. Amount of discretion/ autonomy
• 2. How sophisticated the company is
• 3. Value of looking at differences.

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• 2. Allocating Effort
• Relate to Generic Strategies
• Market penetration
• Product Development
• Market Development
• Diversification

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• A. Account Focus (the who)
• 1. New Customers
• Market Penetration
• Prospecting
• 2. Existing Customers
• Account Penetration

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• 3. Account Priority (attractiveness)
• 4. Time Allocation to Accounts
• Frequency
• Contact Time

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• B. Product Focus (What)
• 1. Product Priority
• 2. Cross Selling/ Full Line

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• 3. Tools
• A. Minimum Account Size
• 1st- Cost per Call
• Direct Selling Expenses
• Number of Calls
• Ave. 164.70 but can 300

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• 2nd- Break even Volume
• Cost per call X calls to close
• Cost as a percentage of Sales
• Who not to call on.
• Issues?

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• B. Prioritizing-Account Analysis
• 80/20 Rule
• 1. Single Factor
• Most Common
• Current Sales or
• Sales Potential

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• Example ABC
• A B C
• Call 10 20 70
• Frequency Weekly Bi-weekly Monthly
• Duration Hour ¾ Hour ½ hour

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• 2. Portfolio/ Multi-factor
• Considers more factors than just sales

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• Example Bank/ Contractors for Construction
  Loans
• Account Opportunity Competitive Position

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• Example
• Account Opportunity Competitive Position
• Sales Current Share
• Profitability Relationship
• Growth Potential Fit
• Credit Worthiness Competitive Adv.

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• Competitive Position
• Strong Weak
• High
• Account
• Opportunity
• Low

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• 3. Decision Models
• Call Plan
• Statistically Determines
• Optimal of Calls

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• 4. Sales Process Models
• Complex Selling
• Account Development
• Long Sales Cycles

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• The Sales Funnel
• 1. Unqualified Opportunities
• 2. Qualified Opportunities
• 3. Best Few

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• 4. Sales versus Profit
• Allocation of Effort
• Product Mix
• Price Concessions
• Lifetime Value

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• 5. Time Management
• Selling Time vs Non-selling Time
• a. How salespeople spend their time
• 29 Selling face-to-face
• 25 Phone Selling
• 17 Waiting/ Traveling
• 16 Administrative
• 13 Service Calls

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• b. Scheduling and Routing
• Basic Rules
• 1. Circular Route
• 2. Shouldnt cross itself
• 3. Not use same route to and from
• 4. Neighbors visited in sequence

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• c. Individual Time Management
• Basics
• 1. Avoid Time Wasters
• 2. Objectives, Plan, Preparation
• 3. Know what activities are important

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• Workload Approach (p 84 in text)
• Combines two ideas we just talked about account
  coverage and selling time.
• Salespeople
• of Accounts X Frequency X Duration
• Selling Time for one salesperson

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• Five Steps
• Time Available/ Salesperson/year
• e.g., 48 weeks X 40 hours/week 1920 hours
• 2. Selling Time/ year
• e.g., 1920 X .25 480 hours

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• 3. Classify Accounts as A B C
• A Large 210
• B Medium 650
• C Small 1430

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• 4. Duration and Frequency
• A 25 calls_at_45 minutes 18 hours per year
• B 12 calls_at_30 minutes 6 hours per year
• C 4 call _at_ 30 minutes 2 hours per year
• Total Time
• 210 A accounts X 18 3780 hours
• 650 B accounts X 6 3900 hours
• 1430 C accounts X 2 2860 hours
• Total 10,540 hours

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• 5. Total required
• 10,540 hours/ 480 hours 22 salespeople