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PRESENTED BY:
Taniya Kharbanda
Karishma Punj

A

sales territory is a grouping of customers
and prospects assigned to an individual
salesperson

 To

obtain thorough coverage of the market.
 To establish a salesperson’s responsibility.
 To evaluate performance.
 To improve customer relations.
 To reduce sales expense.
 To allow better matching of salesperson to
customer.
 To benefit salespeople and the company.

 Salespeople

may be more motivated if they
are not restricted.
 The company may be too small.
 Management may not want to take the time,
or have the know-how.
 Personal friendship may be the basis for
attracting customers.

 States
 Counties
 Cities

and zip-code areas
 Metropolitan statistical areas
 Trading areas
 Major accounts
 A combination of two or more factors

 Intensive

distribution
 Selective distribution
 Exclusive distribution

 The

breakdown approach uses factors such as
sales, population, or number of customers.

 Sales

Force Size = Forecasted Sales
Average Sales per Salesperson

 This

method uses the number, location, and size of
customers and prospects to determine the
frequency of sales calls and amount of time a call
takes by using such data as:
 Time required for each sales call.
 Frequency of sales calls per given customer
 Time intervals between sales calls.
 Travel time around territories.
 Non-selling time.

 Satisfying

part of the service needs of
accounts by telephone
 Assigning smaller accounts to telephone
selling.
 Doing prospecting, market data gathering,
and call scheduling by telephone.
 Carefully scheduling visits to distant
accounts, replacing some with telephone
calls

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Sales territory

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