Sales territories

 Definition : A sales territory consists of existing and

potential customers assigned to a sales person. The
territory may or may not have geographic boundaries.
Reasons for territories
 Increase / improve customer coverage
 Control selling expenses
 Effective evaluation of salesman’s performance.
 improve customer relations
Territory design
Main procedural steps:
1. Selection of a basic geographical control unit
2. Determination of sales potential present in each
unit
3. Combining the basic units into tentative territories
4. Adjust for differences in coverage difficulty and
readjust the tentative territories ( build up / break
down method )
Territory design
 Build up method:
 Decide call frequency
 Calculate total no of calls in the unit
 Estimate workload capacity of salesman
 Make tentative territories
 Develop final territories
Territory design
 Break down method:
 Estimate company sales potential for total market.
 Forecast sales potential for each control unit.
 Estimate sales expected from each salesman.
 Make tentative territories.
 Develop final territories.
Routing Scheduling and control
 Reasons / advantages:
 Maintain lines of communication
 Improve territory coverage
 Minimize wasted time
 Closer scrutiny of sales force movement
 Journey plans for improving customer satisfaction