Sales Territories

GROUP 5 MEMBERS
AQUE

ELMEDULAN, BERNA
ELMEDULAN, JESSALEE
DOMINGO
Pin code will be provided to you at the message box area.
OBJECTIVES:

 To know the significance of

establishing sales territories.
 To obtain thorough coverage of
the market.
Sales Territories
Introduction:

 The idea behind the

creation of sales
territories is to match the
sales opportunities with
the selling effort. 
Sales Territories Meaning and Definitions

 A sales territory is defined as a group of

present and potential customers
assigned to an individual salesperson, a
group of salesperson, a branch, a dealer,
a distributor, or a marketing
organization at a given period of time. 
Sales Territories
Characteristics
 1. Area with potential target customers.
 2. Different groups of customers are
formed by a firm through allotment of
territories.
 3. It is a group of customers or
geographical area assigned to a
salesman.
 4. It is the area that can be effectively
and economically served by a single
salesman.
Sales Territories – Size of Sales Territories

Factors that influence the size of a sales territory:

The nature and demand of the product

Mode of physical distribution

The selling process

Transport and communication facilities in the overall market and

territory.
Factors to be Kept in Mind
while Allocating Sales
Territories:
 1. Even distribution coverage (uniform distribution)
 2. Elimination of duplication of activities 
 3. Equal opportunity
 4. Flexibility in allocation
 5. Controllable
 6. Capable of comparative study
 7. Uniformity in income 
 8. Economical
 9. Efficient performance
 10. Allocation to new salesmen
Sales Territories
Objectives:
 1. To facilitate effective sales planning.
 2. To cover and manage the entire market.
 3. To assign salesmen’s responsibility for a particular territory.
 4. For a better evaluation of performance of the salesmen.
 5. To reduce the selling costs.
 6. To facilitate coordination in marketing functions.
 7. To make the marketing research functions.
 8. Development of fair competition among all sales persons.
 9. To improve the customer relations.
 10. To appoint salesmen matching with the territory and customers.
 11. Independent work area for each salesman.
 12. To compete effectively with competing institutions.
What is Sales
Territories – How to Design
Sales Territories?

 A company has to establish a geographic

control unit. For a multinational
company, this could be a country. Then
for a national company, it could be a
region or zone consisting of one or
several states. There can be further units
in terms of cities or districts. 

 There are two basic approaches:

 1. Market Build-up Approach
 2. Workload Approach.