Sales Territory Management

By:- Pallav Kaushik

Bpit mba 2008-10
0472083908
 Sales Territory

Group of customers or a geographical area assigned to

a sales unit.

It may or may not have a geographic boundaries.

It represents a group of customer accounts, an

industry, a market or a specific geographical area.

© Pallav Kaushik, BPIT, 2008-10

 Reasons to establish Sales Territories

To obtain entire coverage of the market.

To establish a salesperson’s responsibilities.
To evaluate performance.
To improve customer relations.
To reduce sales expenses.
To allow better matching of salesperson to customers.
To benefit salespeople and the company.

© Pallav Kaushik, BPIT, 2008-10

 Designing sales territories.

1. Selecting a basic geographical control unit.

3. Determining sales potentials in control unit.

5. Combining control units into tentative territories.

7. Adjusting for coverage difficulty and reallocating

tentative territories.

© Pallav Kaushik, BPIT, 2008-10

Approaches of territory design.
 Market build-up approach

Looked how the market is built up?

Estimation of present and potential product/services

demand.

Present/potential users.

Consumptions and frequency.

© Pallav Kaushik, BPIT, 2008-10

 Process of Market build-up approach.

© Pallav Kaushik, BPIT, 2008-10

 Cont……

Sales territories are then

formed in such a manner that
the sales potential and work load
is distributed among areas.

© Pallav Kaushik, BPIT, 2008-10

 The workload approach

Designed by WJ Talley.

Based on workload performed by salesperson.

© Pallav Kaushik, BPIT, 2008-10

 Workload approach process

Customer
grouping

Call frequency
estimation

Arrangement of
customers

Number of
planned call
required

© Pallav Kaushik, BPIT, 2008-10

Thank you