TERRITORY MANAGEMENT

WHAT IS A SALES
TERRITORY
• A sales territory is composed of a
group of customers or a geographic
area assigned to a salesperson.
 WHY ESTABLISH SALES
TERRITORIES?
• 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
 DESIGNING SALES
TERRITORIES
• Select basic control unit
• Analyze workload
• Determine basic territories
• Assign territories
• Customer contact plan
• Evaluate, revise if needed
 SELECT BASIC CONTROL
UNIT
• States
• Cities
• Metropolitan statistical areas
• Trading areas
• Major accounts
 ANALYSE SALESPEOPLE’S
WORKLOADS
• Workload is the quantity of work
expected from a sales person
– Nature of job: sales/service/Intensity of
Market coverage
• Intensive distribution ( sell in every outlet)
• Selective distribution (limited
wholesalers/retailers
• Exclusive distribution (only one
distributor/retailer per market)
– Type of product sold (Fritolay /Dell)
 DETERMINE BASIC
TERRITORIES
• Forecast sales and determine sales potentials
– Sales force size = forecasted sales / av. Sales per
salesperson
– Determine no., location and size of territory
– Time required for each sales call/frequency/time
intervals/travel time/non selling time
• Determine sales volume needed for each
territory
• Determine the no. of territories
– Addition of territories-marginal cost/marginal profit
• Tentatively establish territories
• Determine the number of accounts for each
territory
• Finalise the territories and draw boundary lines
 ASSIGN TO TERRITORIES
• Area preference
• Place of birth
• Wrong person assigned – lost sales
and bad relationships
• Right person assigned - profits
CUSTOMER CONTACT PLAN
• Scheduling – fixed time when
salesperson is at the customer’s place
– Improves coverage/saves time /
communication between mgmt. &
customers
• Planning routes-routing report/Pin
maps/routing plan
• Using telephone for territorial coverage
– Sales generating
– Order processing
– Customer servicing
THANK YOU