Question: Case: A sales manager is planning a new time and territory management program to make time investment decisions. In order to establish an efficient plan,

Case: A sales manager is planning a new time and territory management program to make time investment decisions.

In order to establish an efficient plan, the manager classified the accounts in priority order applying a simple A, B, C, D, E designation of categories as follow:

  • A accounts: Top 10% of the accounts generating 65% of sales

  • B accounts: next 20% of the accounts generating 20% of sales

  • C accounts: next 50% of the accounts generating 10% of sales

  • D accounts: next 10% of the accounts generating 3% of sales

  • E accounts: next 10% of the accounts generating 2% of sales

Distribution of sales

Customer Classification

Percentage of Customers

Percentage of Total Sales Volume

A

10

65

B

20

20

C

50

10

D

10

3

E

10

2

Total

100

100

If the group of accounts are classified as follow:

Group of Accounts

Accounts

Expected Value

A

$100,001 and over

B

$50,001-100,000

C

$30,001-50,000

D

$20,001-30,000

E

Under 20,000

And, the call frequency patterns based on potential and return on time invested are as follow:

Call Frequency Pattern

Accounts

Weeks Between Calls

Number of Accounts

A

2

10

B

4

20

C

6

45

D

8

12

E

10

10

Thus, a call cycle in this territory will cover two weeks. This means that in eery two weeks cycle the salesperson will call on these accounts:

  • All of the As

  • Half of the Bs

  • One-third of the Cs

  • One quarter of the Ds

  • One-fifth of the Es

Question:

Using the above information, the call frequency patterns and following table, develop a sales call cycle.

Call Cycles

Account

Number of

Cycle

Cycle

Cycle

Cycle

Cycle

Classification

Accounts

1

2

3

4

5

A

B

C

D

E

Number of Calls

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