WHAT IS A SALES TERRITORY?

A sales territory is composed of a group of customers or

a geographic area assigned to a salesperson.
WHO IS RESPONSIBLE FOR
TERRITORIAL DEVELOPMENT?

Development of sales territories is usually the

responsibility of the sales manager overseeing
the larger sales units within the organization.
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 company.
 FACTORS TO CONSIDER WHEN DESIGNING SALES TERRITORIES

Sales force objectives may be based on factors such as contribution to

profits, return on assets, sales/cost ratios, market share, or customer
satisfaction.

FACTORS TO CONSIDER WHEN DESIGNING TERRITORIES

S elect B a s ic A n a ly z e D eter m in e B a sic

C o n tr o l U n it W o r k lo a d T er r ito r ies

E v a lu a te, R ev ise C u sto m er A ssign to

if N eed ed C o n ta ct P la n T er rito ries
 S elect B a s ic
1 C o n tr o l U n it

SELECT BASIC CONTROL UNITS

• States
• Countries
• Cities
• Metropolitan statistical areas
• Trading areas
• A combination of two or more factors
 A n a ly z e
2 W o r k lo a d

ANALYZE SALESPEOPLE’S WORKLOADS

Workload is the quantity of work expected from sales personnel. Three of the main
influences on workload involve the nature of the job, intensity of market coverage,
and type of products sold.
 D eter m in e B a sic
3 T er r ito r ies

A
 B Procedure or Methods for developing Territories
1.Buildup method
Designing territories through combining enough pieces of company’s
overall market to create units that offer sufficient sales challenges.
To use this actual potential customers has to be identified and their
individual sale volume assessed.

2. Breakdown Method
Determine number of territories by dividing projected average sales per
salesperson into an overall sales forecast.
3.Incremental
Establishing additional territories as long as the marginal profit generated by
the territories exceeds the cost of servicing them
 E v a lu a te, R ev ise
4 if N eed ed

C u sto m er
5 C o n ta ct P la n

CUSTOMER CONTACT PLAN

The customer contact plan involves scheduling sales calls

and routing a salesperson’s movement around the
territory.
Scheduling refers to establishing a fixed
time when the salesperson will be at a
customer’s place of business.

In theory, strict formal route designs enable the

salesperson to:
1. Improve territorial coverage.
2. Minimize wasted time.
3. Establish communication between
management and the sales force in terms of
the location and activities of individual
salespeople.
 CAREFULLY PLANNING ROUTES

• Straight Line Pattern( Sp call customers out of

perimeter of his her territory and than work
back to home base by calling accounts located
in interior portion)
• Cloverleaf Pattern (Routing method made up
of four or more adjoining circular sequences)
• Major City pattern
Using the Telephone for Territorial
Coverage

1. Sales generating
• Selling regular orders to smaller
accounts.
• Selling specials, such as offering
price discounts on an individual
product.
• Developing leads and qualifying
prospects.
Using the Telephone for Territorial
Coverage continued

2. Order processing
• Ordering through the warehouse.
• Gathering credit information.
• Checking if shipments have been
made.
Using the Telephone for Territorial
Coverage continued

3. Customer service
• Handling complaints.
• Answering questions.
 A ss ig n to
6 T er rito ries

ASSIGN TO TERRITORIES

Some salespeople can handle large territories and the travel associated
with them; some can’t. Some territories require experienced salespeople;
some are best for new people. Some people want to live in metropolitan
areas; others prefer territories with smaller cities.
SALES ORGANIZATIONAL DESIGN

Organizational design refers to the formal,

coordinated process of communication, authority,
and responsibility for sales groups and
individuals.
THE LINE ORGANIZATION

In the pure line organization, the chief executive – usually the

president – does the decision making for the firm. The president
has complete authority.

Functional organizational

Functional organizational design is the grouping of

work according to its characteristics.

Staff sale organization

Staff authority is narrower and includes the right to advise, recommend, and
counsel in the staff specialists’ areas of expertise.
Geographic Sale organization
Many large corporations are organized by geographic territory. This
type of organization is generally used by companies with more than
strictly local distribution of their products.

Product sale organization

Another common type of organization in large companies is based on the firm’s
product. The entire company may be organized by product, with separate sales,
advertising, marketing, and so on, along with staffs for each, or some functional
units may remain centralized.

Customer sale organization

Companies with several separate and distinct markets accounting for
major portions of their sales often organize based on these markets or
customers.
Good luck

Life is once. Death

is once. What count
in journey is
weather life is
passed with focus
on life or life is
passed with focus
on death