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Introduction:
To compete in today's competitive sales environment, companies must quickly identiIy and
pursue every opportunity. Organizations must have optimal coverage in all regions, including
the proper distribution and management oI sales reps. Your Sales Manager divides the sales
market into diIIerent territories. In planning the territory hierarchy, the Sales Manager creates
and deIines the whole territory structure by deIining various levels, such as company,
business units, regions or areas. The Sales Manager keeps the territory hierarchy up-to-date
(Ior example, by creating a new territory or deleting an old one). In addition, the Sales
Manager deIines the responsibilities Ior the territories by assigning attributes and the
employee`s responsible (such as the Sales Representative).Your customer has on going
contact with your Sales Representative through business transactions. At some point, he or
she shows interest in your products or services. Your Sales Representative documents a
business transaction, such as a quotation or sales order. When the business transaction is
created, the relevant territory is determined automatically. Finally, your Sales Manager
analyses the territories and employees.
01inition o1 t0rritory manag0m0nt:

"A compl0t0 analytic tool, 10rritory Manag0m0nt giv08 you a ma8t0r vi0 o1 1i0ld
op0ration8 that i8 0880ntial to any 8izabl0 pharmac0utical 1i0ld 1orc0 op0ration."
No matter what country they are in, your sales teams depend on you to make sure they are
connected to the essential data they need to keep their activities Iocused, eIIicient and
eIIective, according to your company`s standards. They also need to be adaptable and able to
respond to the realities oI the local environment. Territory Management gives them the right
tools to do both. Management means the activity oI ensuring the perIormance oI tasks in
order to achieve deIined objectives planning, organizing, Leading & Control. The total
market Ior most Iirms is simply too large to be managed eIIiciently without a territorial
structure.
What I8 a Sal08 10rritory?
The total market Ior most Iirms is simply too large to be managed eIIiciently without a
territorial structure. A sales territory comprises oI a number oI present and potential
customers located within a given geographical area and assigned to a salesperson or an
intermediary
Elements Determine A Territory
!resent and potential customers and consumer;
eography;
Competitors` activity;
Interest groups
eneral economic situation oI the area.
Why 10rritory manag0m0nt:
Most small organizations might only have the need Ior a public security structure in Sales
Iorce in which everyone see`s everything and can modiIy everything. Fine Most medium
sized organizations can survive simply with Sales Iorce proIiles, roles and possibly sharing
settings. reat what happens when you are managing a lobal organization with multiple
product divisions, complex sales territories, diIIicult International legal requirements
(erman worker`s council, embargoed countries, etc) and varying visibility requirements per
Sales Region, Mega Region and lobal Regions? This situation is much more complicated,
but entirely doable in SalesIorce.com using Roles, !roIiles, Territories and Sharing Settings.
Imagine only North America. Imagine that there are 3 product divisions selling to 5 different
sales regions. The 3 product divisions all sell to the same sales regions, but sell different
products. The product divisions need a Manager/Salesperson management concept within
Salesforce.com where the Manager has delete/transfer access for all Salesperson data.
Certain sales people need to be able to cross sell multiple Products within one region. The
reporting structure needs to be done by division (upwards). Sales people in one sales region
should be able to view all Accounts belonging to one region (determined by groups of states),
even if they belong to someone else in a different role (possibly managers).This is a common
scenario that can get much more complex in large, International corporations in multi-million
dollar Sales Iorce deployments. Hierarchy oI territories represent the Sales Regions. An
example would be: 1 World, 2 North America 3 East North America This can be as
granular as necessary. Rules will be deIined that automatically associate Accounts with these
territory 'buckets. So, not East N.A. has a collection oI Accounts in East North America
that you can assign to any group that you would like. It is best to provide the minimum
sharing capability Ior these by deIault.
#easons for Establishing Sales Territories
Achievement oI company`s sales and marketing objectives
Ensure better coverage - territory assignments constrain salespeople to work with less
proIitable customers or prospects as well as the most desirable accounts
Reduced selling costs - assigning responsibility to a single salesperson ensures that
there is no overlap in coverage; customers and prospects are called upon by only one
salesperson
Improved customer service - assigning responsibility to a single salesperson helps to
ensure that all customers and prospects receive adequate servicing
More accurate evaluation oI perIormance - iI territories are relatively equal with
regard to workload and potential, then salesperson perIormance can be compared on
an equal basis; iI territories are unequal in a known way, then adjustments can be
made in evaluation oI unequal perIormance
10rritory Strat0gi08:
The second halI oI your territory plan should include a clear strategy to accomplish three
things:


a. Maintain existing accounts: First priority is to keep what we already have.
b. row existing accounts: etting more business Irom an account already
buying Irom you
c. btain new accounts from the competition: The most time-consuming strategy
but potentially the most rewarding. !enetrating these accounts may take time,
but these represent a potentially signiIicant boost in revenue.
haract0ri8tic8 o1 1oday'8 u8tom0r8
b) a. More sophistication
c) b. More price sensitive
d) c. Short oI time
e) d. More aware oI growing product parity
I) e. High quality/service expectations
g) I. Decreasing supplier loyalty
h) g. Better educated
i) h. Easy access to inIormation (internet, TV, Radio, cable TV, Newspapers etc.)

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