SIE 415-515 Technical Sales & Marketing

Homework 3: Sales Territories

Individual Assignment

1. Read Futrell, Chapter 6, Design and Size of Sales Territories, on D2L

Content.

2. Of the two approaches to sales territory design (the breakdown

approach and the equalized workload approach, as depicted in
step 3 in the model), which of these two approaches do you think
would be more effective for a sales team that is selling a
technologically complex product or service? Why would this be the
case, in your opinion? Thoroughly explain and document your
reasoning.

3. You are a Technical Salesperson. Complete the following Time and

Territory Exercise. Develop answers to Questions A and B in a way
that makes optimal use of your time (Days 1 and 2) and your sales
manager’s time (Day 1 only). Realize that you can use the time with
your Sales Manager to develop your professional relationship with your
Sales Manager. Be sure to show your sales call pattern and total sales
potential for each of the two days.

Scenario: Your sales manager is working with you tomorrow only, and
you want to call on (which means to visit) your customers with the
greatest sales potential during the time that your manager is with you
(see Table 1). Because you are paid on commission, you will have the
opportunity to maximize your income for that day. The area of your
territory that you feel should be covered tomorrow contains 16
customers (see Figure 1).

Table 1

Customer Sales Potential Customer Sales Potential

A $ 4,000
B $ 3,000
C $ 6,000
D $ 2,000
E $ 3,000
F $ 8,000
G $ 4,000
H $ 6,000
I $ 3,000
J $ 2,000
K $ 10,000
L $ 12,000
M $ 8,000
N $ 9,000
O $ 8,000
P $ 10,000

To determine travel time, allow 15 minutes for each side of each small
square. Each sales call takes 30 minutes. You can leave your house (at
Start) at 8:00 AM or later. Time for lunch must be taken in 15-minute
blocks of time (for example, 15, 30, 45, or 60 minutes). Your last
customer cannot be contacted after 4:30 PM in order to allow enough
SIE 415-515 Technical Sales & Marketing

time for the sales call. Your customers do not see salespeople after
5:00 PM. Travel home can be completed after 5:00 PM.

L E F H M

K N

I O R J
Your
favorite
restaurant

C P

D B

G S A

Start
Figure 1

(A) Develop the route that gives the highest sales potential for the
day that your manager works with you.

(B) For the next day, develop the route that will allow you to
contact the remaining customers in this part of your territory.

4. Submit your document to the D2L Dropbox prior to class by the due
date.