Sales territory
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A sales territory is a grouping of customers and prospects assigned to an individual salesperson. There are several reasons for establishing sales territories, including providing proper market coverage, controlling selling expenses, assisting in evaluating sales personnel, contributing to sales force morale, and aiding in coordination of personal selling and advertising. Procedures for setting up sales territories involve selecting a basic geographical control unit, determining sales potential in each unit, combining units into tentative territories, adjusting territories for differences in coverage difficulty, and deciding assignment of sales personnel.
Sales territory
- 1. A sales territory is a grouping of customers and prospects as signed to an individual salesperson Reasons for establishing sales territories •Providing proper market coverage •Controlling Selling Expenses •Assisting in Evaluating Sales Personal •Contributing to sales force morale •Aiding in coordination of personal selling and advertising
- 2. Sales Territory Procedures for setting up sales territories ï‚— Selecting a basic geographical control unit 1. States 2. Zip code areas 3. Cities 4. Metropolitan statistical areas 5. Trading Areas
- 3. Sales Territory ï‚— Determining Sales potential present in each control unit ï‚— Determining sales potential present in each control unit ï‚— Combining control units into tentative territories Territory shape 1. Circle 2. Wedge 3. Clover leaf
- 4. Sales Territory ï‚— Adjusting for differences in coverage difficulty and redistricting tentative territories 1. Determine number ,location and size of customers and prospects in each tentative territory. 2. Estimate time required for each sales call 3. Determine length of time between calls 4. Decide call frequencies 5. Calculate the number of calls within a given period. 6. Adjust the no. of calls possible during a given period by the desired call free frequencies for the different classes of customers and prospects. 7. Finally, check out adjusted territories with sales personal.
- 5. Sales Territory ï‚— Deciding assignment of sales personal to territories. DSC_0176.jpg ï‚— Routing and scheduling sales personal