Sales Territory Management

A sales territory is a group of present and

potential customers assigned to an individual
sales person, a group of salesperson, a branch, a
dealer, a distributor, or a marketing organization
at a given period of time

A basic unit of sales planning and control

(Maynard and Davis)
Sales Territory Advantages

Better market coverage

Effective utilization of sales force
Efficient distribution of work load
Convenient performance appraisal
Optimum utilization of sales force time
Direct and indirect cost control
Efficient relationship building
 Allocation of Sales
Territories
Nature of product (CD-Large)
Channel
Intermediaries (Large)
Direct (Small)
Density of population/Market potential
Communication and Transportation(R vs.U)
Competition (Intense-Small)
Trained and Competent sales force (Large)
Recession-small, Boom-Large
 Allocation of Sales
Territories

Uniform pattern in the form of market

coverage

Familiarity

Level of control desired by the company

Economies of scale and cost

 Territory design

Geographical Control Unit (GCU):

The basic unit of market coverage (Nations,
States,Postal Index Numbers,Cities and Metros)
Open Sales Territories:
Territories left vacant until new sales people are
assigned to them
Incremental Territory:
Additional territory can be added if profit from
sales territory exceed cost of managing territory
 Territory design

Sales leakage
Lost sales as a result of vacancy and time
required for new sales-person to be productive at
average level
Trading Area
Areas of logical choice as geographical control
unit (based on natural flow of the trade)