1. Sales and Distribution Management, 2e Dr Tapan K. Panda, Great Lakes Institute of Management, Chennai Dr Sunil Sahadev, University of Sheffield, UKCopyright 2011 Oxford University PressChapter 7: Management of Sales Territory

2. Chapter 7 Management of Sales TerritoryCopyright 2011 Oxford University PressChapter 7: Management of Sales Territory 3. Sales territory a group of present and potential customers assigned to an individual sales person, a group of sales person, a branch, a dealer, a distributor or a marketing organization at a given period of timeCopyright 2011 Oxford University PressChapter 7: Management of Sales Territory 4. Sales territory (contd.) Advantages of designing a sales territory : it ensures better market coverage effective utilization of the sales force efficient distribution of workload among sales people it is convenient to evaluate the performance of sales people to control over the direct and indirect costs of the sales function optimum utilization of sales time by sales peopleCopyright 2011 Oxford University PressChapter 7: Management of Sales Territory 5. Designing sales territories Factors influencing the modifications of a territory: mergers market consolidation split in division sales force turnover customer relocations product life cycle change product line change Copyright 2011 Oxford University PressSelect the basic geographic control units Decide on the criteria for allocation Decide on the starting point Combine control units adjacent to starting point Compare territories on allocation criteria and conduct workload analysis Assign sales force to new territoriesModify territorial boundaries to balance workload and potentialChapter 7: Management of Sales Territory 6. Territory shapescircleCopyright 2011 Oxford University PresswedgeClover leafChapter 7: Management of Sales Territory 7. Strategic Planning Matrix Opportunity H i g hThe account offers a good opportunity. It has high potential and the sales organization has a differential advantage in serving it.Strategy Commit high levels of sales resources to take advantage of the opportunity.L o wOpportunityThe account offers stable opportunity since the sale organization has differential advantages to serving them.StrategyAllocate a moderate level of resources to maintain current advantage.Strong Copyright 2011 Oxford University PressOpportunityThe account may represent a good opportunity. The sales organization needs to overcome its competitive disadvantages and strengthen its position to capitalize on the opportunity.Strategy Either direct a high level of sales resources to improve the position and to take advantage of the opportunity or shift resources to other accounts.OpportunityThe account offers little opportunity. Its potential is small and the sales organization is at a competitive disadvantage in serving it.StrategyEither commit a minimal level of resources to the account or consider abandoning the account altogether.WeakChapter 7: Management of Sales Territory 8. Sales TerritoriesNew Territories..? Use of Information Technology IT enabled services computer programmes simulation techniquesCopyright 2011 Oxford University PressChapter 7: Management of Sales Territory