Key Differences between Sales and Marketing
Sales:
● Persuade a prospective client to buy something that will satisfy their needs.
● Push strategy in bringing the products and services to the consumers.
● Personal communication, talk directly to consumers, Two way
communication
● Short run in terms of hitting sales target with current products/services in the
current market
Marketing:
● Determine the needs of clients and to create and maintain an effective
marketing mix to satisfy that need.
● Mixture of push and pull strategy (e.g. advertising, trade sales promotion)
● Non-personal communication One way communication
● Long run in terms of coming up with new products for changing markets or
going into untapped markets for future growth
What is selling for B2C and B2B?
B2C:
● Business to consumer
● Sells directly to individual customers
● Buying Process is usually quick. Emotional and based on personal needs or
desires
● E.g Retail store, supermarket, restaurant etc.
B2B:
● Business to Business
● When a business sells to another business
● Buying process takes longer, involves multiple decision makers, and focuses
on logic, long-term benefits and business needs.
● E.g Company buying office supplies in bulk.
The sales cycle:
The sales funnel:
1. Initial Contact → Your first email, call, meeting or other contact with the
lead.
2. Qualification → When you have determined a lead is serious and capable of
making a purchase.
3. Develop Solution → begin collecting facts about your client to develop a
value proposition.
4. Presentation → When you have scheduled a full sales presentation, be it a
demo or a written proposal.
5. Evaluation → When you address a client’s concerns about the
product/service.
6. Negotiation → When you negotiate a price and other details(e.g warranty).
7. Closing → Whe the purchase has been more or contract signed.
Personal selling for B2B
Persuading Business Clients to Buy
- Aims to understand a company’s needs and challenges, offering tailored solutions in
the form of products or services that enhance business operations.
Selling Complex and Customised Solutions
- Demonstrates and explains industry-specific solutions, addressing key concerns and
technical requirements for business clients.
Managing Long Sales Cycles and Stakeholders
- Influences each stage of the B2B sales process by ensuring that key decision makers
understand the supplier’s value proposition and product benefits.
Building Long-Term Business Relationships
- Develops trust and credibility to position the company as a reliable partner, ensuring
repeat business and continued collaboration.
Success Factors for B2B Sales:
Expertise and skill set of B2B Sales Professionals
- Ability to identify and understands a company’s needs, pain points and procurement
procedures
- Expertise in negotiating large-scale contracts and close long-term deals.
- Ability to manage complex stakeholder relationships and build trust over time.
Effectiveness of B2B Sales Management:
- Ability to lead and train sales teams to handle long sales cycles and multiple
decision-makers.
- Develop date-driven strategies to align sales efforts with the company business
objectives.
Company’s Strategic Market Focus:
- Diversification of B2B product offerings and solutions to cater to different industries
and business needs.
- Strong positioning in targeted market segments to drive higher customer retention
and lifetime value.
Prospecting → Lead → Prospect
Lead Generation: Locating Prospects
Step 1: Understanding Potential Customers ( Why they buy, where they buy, when they buy,
who influence, where they look, what they buy)
Step 2: Methods for Lead Sourcing
- Random Lead Search: Involves non-targeted, broad methods of finding potential
customers. It relies on chance and volume rather than specific criteria or targeted
strategies. (E.g Cold Calling, Mass distribution of flyers, Direct Mails, Door to Door
Canvasing, Getting published) High Traffic, Mass Engagement, Lower
Conversion Rate Best For: Industries that rely on volume and brand exposure
to attract potential customers.
-
- Selective (Direct Source): This involves identifying leads based on specific criteria
and reaching out directly using known sources. (E.g Friends, relatives, centre of
influence which is through influencers, endless chains which is refers to a referral-
based strategy where each lead or contact is asked to provide additional contacts—
creating a continuous, self-sustaining chain of new prospects, Emails, former
customers, company records. Strong Conversion Rates, Targeting Decision-Makers
Best For: Industries that involve high-value purchases, long-term contracts, or
professional services.
- Selective (Indirect Source): You still have criteria and targeting, but the lead info
comes from external or third-party sources (you’re not the one who initially found
them). Trade shows, fairs etc. Seminars and conferences, contests, free gifts,
unsolicited enquiries.
-
Directive Source VS Indirect Source
Direct Source: You found or already possessed the name yourself, No middle-person. You
looked in your own phone, loyalty database, event sign-in sheet, LinkedIn search results,
etc.
Indirect Source: You still want a very specific kind of guest, but the name reached you
through someone/something else first, e.g, a third party (friend, industry guru, trade-show
organiser, directory, partner firm) handed you the contact.
Qualifying the Leads:
Step 3: ALL leads must be filtered through name+AP process before they become qualified
prospects.
Effective lead Qualification Matters- Not all leads are equal and identifying the right
customers early saves time and increases success rates.
Asking the Right Questions: Strong sales professionals probe strategically to uncover
customer’s needs, decision making power and buying intent.
Common Mistakes: Asking Vague or irrelevant questions, missed key qualifying criteria or
struggled to handle objections.
Best practices for sales prospecting: Active Listening – Pay attention to verbal/non-verbal
cues.
Customised Questioning – Tailor questions based on the customer’s role, industry, and
potential pain points.
Handling Objections Professionally – Don’t just sell, address concerns and build trust. (Will
cover in L03 and L04)
Classifying Leads Correctly – Not every lead is immediately ready to buy. Some may need
nurturing.
Why Rejections Might Be A Good Sign???
[Link] Customer Interest
- Engaged enough to respond rather than ignoring the offer entirely
- If they object, they may be considering, just need more convincing
[Link] Valuable Feedback
- Often comes with reasons, e.g. price, features, competitors, etc.
- Helps sales professionals to refine their pitch, improve offering, or adjust approach
[Link] Out Unqualified Leads
- Not every customer is the right fit, and rejection helps sales professionals to focus on
leads that are more likely to convert
- Saves time and resources by prioritising high-potential customers
[Link] Product/Service Improvements
- Patterns in rejections can highlight areas of improvements
- Businesses and sales professionals can use customer objections to innovate, adjust
pricing, or refine their offerings
[Link] Future Opportunities
- A “NO” today, doesn’t mean a “NO’ forever – circumstances change!
- If handled well, a rejected prospect may return later when they are ready to buy
Categories of Objections:
1. Hidden
- The customer gives vague reasons for rejecting the product but has an underlying
concern that they are not revealing. This could be due to distrust, hesitation, or
personal reasons.
- Example: A customer says without explaining further, “I’m just not sure about this…”
2. Product
- The customer believes the product does not meet their needs, lacks features or is
inferior to competitors.
- Example: A customer looking at a smartwatch says, “This doesn’t have a sleep
tracker but Brand X does….”
3. Source
- The customer does not trust or prefer the company, brand or salesperson selling the
product.
- Example: A customer says, “ Ive never heard of your brand before, so I’d Rather
stick with what I know like Brand X”
4. Stalling
- The customer delays making a decision, often saying they need more time but may
never follow up.
- Example: A customer says, “Let me think about it and get back to you”
5. Money
- The customer thinks the product is too expensive or is unsure if it’s worth the cost.
- Example: A customer says, “I like it, but it’s out of my budget”
6. No Need
- The customer does not see the need for the product or believe it does not apply to
them.
- Example: A secondary school student says, “I dont need a laptop, my phone is
enough for my schoolwork”
How to Handle Rejection?
1. Hidden
- The customer is not revealing the real issue and avoiding direct rejection.
- Overcoming it: Ask Open-ended questions to uncover true concern
- Example: “That is totally fine! Just out of curiosity, what’s the most important factor
for you when choosing this product? Some customers hesitate because they’re too
worried about durability, price or warranty, do any of them concern you?”
2. Product
- The customer doesn’t think the product fits their preferences or needs. Overcoming
It: Position the product differently, emphasise benefits they might have overlooked,
or offer a customised option.
- Example: "I see! Actually, while this model may not have a dedicated graphics card,
it does have a high-speed processor and ample RAM, which can still handle most
video editing tasks smoothly. If you need something even more powerful, I can show
you another option that fits your needs better."
3. Source
- The customer is loyal to their current provider and hesitant to switch. Overcoming It:
Highlight unique advantages, show testimonials, or offer a trial to build trust.
- Example: "That’s great! Loyalty is important. However, many of our customers who
switched found that our service speed was 30% faster. Plus, we’re offering a 30-day
risk-free trial— why not test it out and see if you notice the difference?"
4. Stalling
- The customer is delaying the decision, likely as a way to avoid saying no outright.
Overcoming It: Create urgency, offer a limited-time incentive, or ask what specific
concerns they have.
- Example:“I completely understand. is there anything specific that is holding you
back? Also, I should mention that this promotion ends by Friday, so I’d love to make
sure you don’t miss out on the savings!"
5. Money
- The customer thinks the price is too high or not worth the investment. Overcoming It:
Break down the cost vs benefits, offer payment plans, or compare it to alternatives
- Example: "I understand that pricing is important. But if you look at what you’re getting
— heart rate monitoring, GPS tracking, and sleep analysis—this actually replaces
multiple devices in one. Plus, we have a zero-interest instalment plan at just S20 a
month. Would that make it easier for you?"
6. No Need
- The customer doesn’t see value in the offer because they feel they are doing fine
without it. Overcoming It: Demonstrate how the product/service solves a problem
they may not realise they have.
- Example: “I get that! A lot of people feel that way initially. But did you know that even
treated tap water can contain chlorine and sediments? This purifier removes 99% of
those impurities, giving you cleaner, better-tasting water. Plus, it could save you
money in the long run by reducing bottled water purchases."
Strategies to Overcome Objections:
1. The Dodge: Avoid answering directly when the objection is not relevant When To
Use: If the objection isn’t a real issue, steer the conversation elsewhere.
Example: Customer: “I heard this phone doesn’t come in blue.” You: “That’s true, but
the matte black version is our bestseller because it’s fingerprint resistant and sleek!”
2. Direct Denial: Correct the customer clearly but politely When To Use: When a
customer is wrong, respectfully provide facts.
Example: Customer: “I heard the laptop has only 4GB of RAM.” You: “Actually it
comes with 8GB of RAM, so it’s great for multi-tasking and gaming.”
3. Indirect Denial: Gently correct the customer while acknowledging their concerns.
When To Use: Instead of outrightly saying “you’re wrong”, soften it with a positive
tone.
Example:Customer: “Isn’t organic skincare just a trend?” You: “I get why you’d think
that! But many dermatologists recommend organic products because they contain
milder chemicals and gentler on the skin
4. Boomerang: Turn the objection into a benefit- Flip the concern around and show why
it’s actually a good thing.
Example: Customer: “This chair is too lightweight. It doesn’t seem sturdy.” You:
“That’s actually a plus! It’s designed to be portable and strong – perfect for moving
around easily without losing durability!”
5. Compensation: Acknowledge the flaw but balance it with a strong benefit, Admit the
downside but highlight something that makes up for it.
Example: Customer: “This smartwatch doesn’t have a long battery life.” You: “That’s
true, but it has super- fast charging – you can get a full day’s battery in just under 30
mins!”
6. Question: Ask a question to understand their real concern. When To Use: Get more
details so you can respond better.
Example:Customer: “This gym membership is expensive!” You: “I get that! What are
you looking for in a gym? Flexible hours, personal training or premium equipment?”
7. Third-Party Reinforcement: Use a review, testimonial, or expert opinion to support
your response. Bring in social proof to back up your claim.
Example: Customer: “I don’t think this acne cream works.” You: “I totally understand.
Actually, a lot of people felt the same at first, but after using it for 2 weeks, 90% of
users saw clearer skin!”
The Negotiation Process: Preparing and Planning+Exploring Underlying
Needs+Development on Agreement.
Exploring Underlying Needs
Developing an Agreeement
1 Formal Groups
What They Are: Officially structured units with defined roles and deliverables.
Examples: Departments (Finance, HR), project teams, standing committees.
Membership: Assigned by skill or hierarchy, not personal choice.
Environment: Closed/official; often handles sensitive or business-critical tasks.
Coaching Challenges
Task-Orientation – Focus on short-term metrics; little room for holistic guidance.
Lack of Depth – Relationships remain transactional; limited insight into long-term goals.
Emotional Distance – Formal settings make deep personal bonds harder.
2 Informal Groups
What They Are: Naturally forming circles based on friendship or shared interests.
Examples: Lunch cohorts, peer study groups, hobby clubs.
Structure: Loose and voluntary, yet influential on culture and morale.
Coaching Opportunities
Relational Depth – Easier trust building enables more open dialogue.
Holistic Insight – Casual chats reveal aspirations beyond KPIs.
Cultural Influence – Positive norms can spread through informal networks
IMPACTS OF GREAT
Intra-Organisational Relationships
1. Belief in Shared Aims & Objectives
- When employees understand and align
with the company’s goals, they work together more effectively.
- Example: Nike’s “JUST DO IT” culture
unites employees under a shared mission to inspire and innovate for
athletes worldwide.
2. Sense of Commitment to the Group
- Strong relationships create a sense of
loyalty and motivation.
- Example: Starbucks calls its employees “partners” instead of “staff”, creating a strong
sense of belonging. As a result,
they stay longer, engage with customers better.
3. Acceptance of Group Values and Norms
-Every organisation has an “unspoken
culture” (e.g. OT, how they communicate)
- Example: Google promotes “open door”
policy where employees are encouraged to share ideas with top management.
Employees who embrace these values
thrive, while those who don’t, might struggle.
4. Mutual Trust and Dependency
- Trust is essential for effective teamwork
and conflict resolution.
- Example: In a Formula 1 race, every
millisecond matters. Each pit crew member must trust their teammates to do their job
flawlessly. This high level of trust ensures seamless teamwork and peak
performance.
5. Full Participation and Consensus- Based Decision Making
- When everyone is heard and valued, decision making is smoother.
- Example: Netflix avoids micromanagement.
Teams are given the autonomy to make decisions collectively. Employees feel
empowered because their opinions matter, leading to better innovation
6. Free Flow of Information and Communication
- Transparency prevents misunderstandings and inefficiency.
- Example: Tesla’s “No Titles” Policy. Elon
Musk encourages employees to email or talk directly to anyone, even him, rather than
following bureaucratic chains of commands.
This open style means ideas travel faster, and issues resolved
quicker.
7. Open Expression of Feelings and Disagreements
-Employees should feel safe to voice concerns or new ideas.
- Example: When making animated films, Pixar teams regularly hold open feedback
meetings. Employees at all levels can critique scenes and give suggestions, no matter their
rank. This ensures
continuous improvement.
8. Good teams handle small issues early, preventing escalation.
- Example: Amazon’s “Disagree and Commit”
Philosophy. Employees are encouraged to
voice disagreements openly. However, once a decision is made, everyone commits fully,
even if they initially
disagreed. Team move forward productively.
9. Lower Turnover, Absenteeism and Errors
-Happy teams = Productive teams
- Companies with strong intra-organisational
relationships retain talent and reduce stress.
- Example: Toyota invests heavily in employee well-being and continuous improvement
training. Workers are encouraged to suggest innovations and get recognition for
their contributions.
SPECIAL TRAITS AND SKILLS SET
of KEY ACCOUNT MANAGER
TYPES OF MOTIVATION
INTRINSIC VS EXTRINSIC
1. Intrinsic:
2. Extrinsic:
Types of Rewards: Intrinsic and Extrinsic
Intrinsic Rewards: Meaningful Work and Purpose: Employees feel valued and connected to
the company’s mission.
Recognition and Appreciation: Employees feel seen and appreciated, motivating them to
contribute more.
Internal Promotion/Leadership Opportunity: Employees feel a sense of progress in their
careers, increasing motivation.
Giving Employees More Autonomy: Employees feel trusted and empowered, leading to
greater motivation.
Extrinsic Rewards: Financial Rewards - Performance bonuses, Pay raises and promotions,
commissions.
Recognition and Career-based rewards, employee of the month, plaques medals certs
exclusive job titles.
Tangible and incentive-based rewards- Company gifts, free trips and experiences, VIP
Perks.
Social and Public Recognition- Shout-outs in meetings, letters of commendations, linkedin
features.
WHEN TO USE INTRINSIC REWARDS
Best for long-term motivation, job satisfaction, and employee engagement.
Encourages employees to find meaning in their work rather than relying on
external rewards. Ideal for roles that require creativity, problem-solving, and passion-driven
work. There’s limited budget for financial rewards.
1. You want employees to stay motivated beyond just money.(e.g encouraging
personal growth and career development)
2. The employee is passionate about their work.(e.g providing autonomy and ownership
over projects)
3. The goal is to improve job satisfaction and long-term commitment.(Recognising
employees publicly for their contributions)
4. Creativity and problem-solving are key.(E.g Offering leadership or mentorship
instead of bonuses.)
WHEN TO USE EXTRINSIC REWARDS?
1. You want to drive short-term performance improvement.
Example: Offering performance-based bonuses for hitting sales targets.
2. The task is repetitive or lacks natural motivation.
Example: Providing incentives for completing routine administrative work.
3. You need to recognise high achievers in a structured way.
Example: Implementing an “Employee of the Month” programme.
4. The organisation is highly goal-driven.
Example: Rewarding top-performing teams with monetary incentives or perks
5. You need to attract and retain talent in a competitive industry.
Example: Offering salary raises and stock options as part of employee retention
strategies.
Types of Motivation Methods: The Basic Compensation plan, Special Financial
incentives, Non-Financial Rewards, leadership techniques.
The Basic Compensation Plan:
This includes fixed and variable pay that employees receive for their work.
Salary – A fixed monthly or annual pay.
Commission – Extra earnings based on sales performance.
Fringe Benefits – Additional perks like insurance, transport allowances, or meal subsidies.
Real-World Example:
A sales executive gets a base salary + commission
for X% of business deals he brought in.
Special Financial Incentives:
These are additional (usually ad-hoc) financial rewards given for outstanding performance.
Bonuses – Extra money for meeting or exceeding targets.
Trips – Paid vacations or travel incentives.
Company Products/Services – Discounts, free items, or exclusive perks.
Real-World Example:
Google employees receive year-end bonuses and
high-performing staff get all-expense-paid trips
Non-Financial Rewards:
These motivate employees without using moneybut through recognition and personal
growth. Achievement Awards – “Employee of the Month” certificates or trophies. Challenging
Work Assignments – Promotions or leadership opportunities, OR something the employee
wants to explore.
Praise and Recognition – Verbal or written appreciation from managers.
Real-World Example:A Starbucks Barista gets a “Star of the Month”
badge and a thank-you letter from the CEO.
Leadership Techniques:
These involve how a manager leads and motivates employees through personal
interactions.
Personal Style – A leader’s way of inspiring and
guiding the team.
Feedback– Providing constructive advice to
help employees improve.
High Level of Involvement – Managers actively engaging with and supporting employees.
Real-World Example:Tesla’s CEO, Elon Musk, works closely with
engineers and personally gives feedback to drive
innovation.
7 Factors for the effective management of people:
1. Positive Action On An Individual Basis
1. Effective managers recognize and support employees individually rather than using a one
size-fits-all approach.
2. People have different strengths, weaknesses,
and motivations, so leadership should be
personalized to help them thrive.
EXAMPLE: A sales manager notices one employee excels at customer service but struggles
with closing deals. Instead of criticising him, the manager assigns a mentor to help him
improve his sales techniques.
2. Consideration, Respect & Trust
1. Employees perform better when they feel valued, heard, and trusted by management.
2. Mutual respect builds a positive work environment, leading to better communication and
collaboration.
EXAMPLE: A team leader trusts his employees to work
remotely and does not micromanage them. As a result, employees feel respected and
become more productive.
3. Involvement and Availability:
1. A good manager is present and engaged with their employees instead of being distant or
unapproachable.
2. Employees feel valued and supported when leadership is accessible and involved in daily
operations.
EXAMPLE: A restaurant manager spends time on the floor, helping staff during peak hours
instead of just staying in the office. This boosts morale and strengthens team relationships.
4. Fair and Equitable Treatment:
1. Employees should be treated fairly and equally, regardless of background, experience, or
personality.
2. Favoritism or unfair treatment reduces motivation and creates conflicts.
EXAMPLE: A company implements a clear promotion system where employees are
rewarded based on performance metrics, and not personal relationships with the boss.
5. Recognition and Credit
1. Employees need acknowledgement for their contributions.
2. Praise can be verbal, written, or in the form of awards.
3. A lack of recognition can lead to low morale and disengagement.
EXAMPLE: A company rewards its top-performing employee with an “Employee of the
Month” award, a public shout-out, and a small bonus.
6. Staff and Customer Satisfaction:
1. Happy Employees = Happy Customers
2. Employees who feel valued provide better customer service, leading to business success.
EXAMPLE: A retail store manager ensures employees feel supported with flexible
schedules, which improves their morale and helps them provide excellent customer service.
7. Emphasis on Results
1. Managers focus on performance and outcomes, not just efforts.
2. Employees should have clear goals and measurable success criteria.
EXAMPLE: A marketing team is given a clear goal: “Increase social media engagement by
20% in three months.” The team Is rewarded based on achieving the target, not just working
hard.
Explanation of the Portfolio Analysis Matrix
Introducing the two key factors in the matrix:
i. Account Attractiveness (Y-axis) → How valuable is this client?
ii. Business Strength / Relationship (X-axis) → How strong is the relationship
with this client?
Explanation of the 4 Quadrants in the Portfolio Analysis Matrix
Quadrant Meaning Management Strategy
Strategic Account (High VIP clients with high Invest heavily in long-term
Attractiveness, High Relationship) long-term value. partnerships.
Star Account (High Attractiveness, Valuable clients, but Selectively invest to
Low Relationship) weak relationship. strengthen ties.
Status Account (Low Low growth but stable. Maintain good service, but
Attractiveness, High Relationship) no extra investment.
Streamline Account (Low Clients who don’t bring Manage efficiently with
Attractiveness, Low Relationship) much value. minimal effort.
These further explanations and examples below should help to better understand how
different companies fit into the four account categories and why businesses choose to
allocate resources differently.
1. Strategic Account (Strategic Investment)
Definition: These accounts are highly attractive and have a strong relationship with the
business. They require significant investment as they contribute heavily to long-term growth.
Examples:
q Apple & TSMC – Apple relies on TSMC for its high-performance chip manufacturing,
making them a critical partner.
q Boeing & Rolls-Royce – Rolls-Royce supplies jet engines for Boeing aircraft,
requiring deep collaboration.
q Microsoft & Large Enterprise Clients (e.g. JPMorgan, Walmart) – These
companies heavily invest in Microsoft’s cloud solutions, forming a strategic long-term
partnership.
2. Star Account (Selective Investment)
Definition: These accounts are attractive but have a weaker relationship with the business.
They may have high potential but require selective investment to increase engagement.
Examples:
q Samsung & Various Tech Startups – Samsung invests in startups that show
potential in semiconductor or AI technology.
q Luxury Hotel Chains & Corporate Clients – A company like Marriott may work with
corporate clients but only selectively provides premium benefits based on potential.
q Tesla & Fleet Buyers (e.g. Uber, Hertz) – Tesla sells to fleet buyers but does not give
them the same level of attention as large investors or government contracts.
3. Status Account (Proactive Maintenance)
Definition: These accounts have strong relationships but are not as attractive in terms of
revenue or growth potential. They require steady maintenance but not heavy investment.
Examples:
q Adobe & Small Businesses – Adobe maintains long-term relationships with small
business clients but does not invest heavily in each.
q IBM & Government IT Departments – Governments often have strong ties with IBM
but may not be high-growth clients.
q Industrial Equipment Suppliers & Legacy Manufacturing Clients – Long-term
relationships exist, but these accounts are not a source of major new revenue.
4. Streamline Account (Management for Cash)
Definition: These accounts are neither highly attractive nor have a strong relationship. They
are managed for efficiency, with minimal investment.
If exam question talks about all they care is cheapest price, it is streamline account.
Examples:
q Telecom Companies & Low-Spending Customers – A telecom provider like Starhub
or Singtel may maintain accounts for prepaid users but does not invest heavily in
them.
q Banks & Standard Savings Account Holders – Traditional banking customers with
small deposits are managed efficiently without much focus.
q Fast-Moving Consumer Goods (FMCG) Brands & Small Retailers – Companies like
Proctor & Gamble may sell to small mom-and-pop shops but do not prioritise them
for strategic growth.
2. Sales Territory Management
Sales Territory Management is the process of strategically dividing and organising a
company’s sales efforts by assigning specific geographic areas, industries, or customer
segments to individual salespeople or teams.
In a nutshell:
It ensures balanced workloads, improves customer coverage, boosts sales efficiency, and
helps teams focus their efforts where the highest potential returns are. Think of it like giving
each salesperson their own “patch” to farm—so no one’s stepping on each other’s toes, and
no good customer gets ignored.
Analogy: Farmers in a Giant Orchard
Imagine your company is a giant fruit orchard —absolutely brimming with delicious
opportunities (a.k.a. customers and sales potential).
But here’s the catch: You have got a group of farmers (your salespeople) and one big rule —
no one gets fruit unless they work their patch!
So how does Sales Territory Management fit in?
Concept Analogy Explanation
Sales
Territory A farmer’s patch in the orchard Each salesperson is assigned a unique area to
avoid overlap and maximise focus.
Customer
Segments Different types of fruit trees Some patches have apples (retail clients), others
have durians (B2B clients) – each needs its own care.
Coverage
Planning Making sure all trees get watered Ensures no customer is neglected and everyone
gets attention.
Balanced
Workload Fair division of sunny vs. shady patches Helps avoid one salesperson being
overworked while another is chilling under a mango tree.
Territory
Reviews Crop rotation Periodically re-evaluate and adjust territories based on performance
and market changes.
Objective:
The video titled "Easy Ways to Manage Your Sales Territory" by Industrial Sales Secrets
emphasises the importance of effective sales territory management and offers practical
strategies to enhance sales performance.
[Link]
Common best practices in sales territory management typically include:
1. Regular Territory Reviews: Periodically assess and adjust territories to ensure they align
with market changes and sales team capacities.
2. Utilising Technology: Leverage CRM systems and sales management tools to analyse
data and optimise territory planning.
3. Balancing Workloads: Ensure equitable distribution of accounts among sales
representatives to maintain motivation and efficiency.
4. Setting Clear Objectives: Define specific goals for each territory to guide sales strategies
and measure success.
5. Continuous Training: Provide ongoing training and support to sales teams to adapt to new
challenges and opportunities within their territories.
How can we divide sales territories?
Sales territories can be divided in several strategic ways, depending on what the business
sells, who the customers are, and how the company wants to manage its sales team.
Here are the most common methods for dividing sales territories:
1. Geographical Territory
§ Based on: Physical location – e.g. North, South, East, West regions.
§ Common for: Nationwide or regional coverage businesses (e.g. retail chains, food
services).
§ Example: One rep handles customers in Jurong, another in Tampines.
Pros: Simple, clear lines, good for travel planning. Cons: Doesn’t consider customer value –
one region might have way more
sales potential.
2. Customer Type (Segmentation)
§ Based on: Types of customers – e.g. government agencies, SMEs, schools, MNCs.
§ Common for: B2B companies or businesses with diverse clients.
§ Example: One team handles schools, another handles corporate clients.
Pros: Specialised knowledge of client needs. Cons: Overlap may occur if customers fit into
multiple types.
3. Product or Service Type
§ Based on: Different product lines or services.
§ Common for: Companies with a wide range of offerings.
§ Example: One rep sells hardware, another handles software.
Pros: Sales reps become product experts. Cons: Risk of confusing customers who buy
multiple product types.
4. Revenue or Potential Value
§ Based on: Existing sales volume or growth potential.
§ Common for: High-value B2B accounts or limited sales team.
§ Example: One rep manages “high-potential” accounts, another handles “growth” accounts.
Pros: Focuses effort where returns are highest. Cons: May lead to jealousy among sales
reps over ‘easier’ accounts.
5. Industry
§ Based on: Client industries – e.g. healthcare, education, finance.
§ Common for: Enterprise-level services (consulting, tech solutions).
§ Example: One salesperson focuses on fintech, another on education.
Pros: Allows for deep industry understanding. Cons: Requires salespeople to stay updated
on that industry
