Sales Territories

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Transcript of Sales Territories

WHAT IS A SALES TERRITORY According to B.R.Canfield, A sales territory is a geographical area containing present and potential customers who can be effectively and economically served by a single salesman, branch dealar or distributor. A sales territory is a composed of a group of customers or a geographic area assigned to a salesperson.

WHY ESTABLISH SALES TERRITORIES? To obtain thorough coverage of the market To establish a salespersons 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

DESIGNING SALES TERRITORIES Select basic control unit Analyze workload Determine basic territories Assign territories Customer contact plan Evaluate, revise if needed

Characteristics Potential customers Different groups of customers Geographical area assign to a salesperson Effectively & Economically

Objectives of sales territoriesTo facilitate effective sales planning. To cover & manage the entire market. To assign salesman responsibility . To reduce the selling costs. To facilitate coordination in marketing functions. For marketing research. Development of fair competition. To improve the customer relations. Independent work area for each salesman.

Reasons for Establishing sales territoriesTo provide proper market coverage. To control selling expenses. To assist evaluating performance sales personnel. To contribute to sales force morale, and To help in the coordination of personnel selling & advertising efforts.

Factors affecting the size of sales territoriesNature of the products Demand for the product Mode of distribution Selling expenses Transport & Communication facilities Govt. policy Density of population

Continue.Market potentialities State of competition Abilities of salesman Firms policies Economic condition prevailing in the country

Factors to be kept in mind while Allocating sales territoriesEven distribution coverage/ uniform coverage Elimination of duplication of activities Equal opportunity Flexibility in allocation Controllable Capable of comparative study

Continue.Uniformality in income Economical Efficient performance Allocation to new salesmen

Routing & Scheduling sales personnel

Advantages of Routing & SchedulingRouting & Scheduling plans improve better sales coverage. Fixation of call frequency rate. Reduce wastage of time. Advance appointment with the customers/ prospects. Assists sales management for closer control.

Procedure for Setting up or Revising Sales TerritoriesSelection of basic geographical control unit Determining sales potentials on the basic units Combining the basic units into tentative sales territories Adjusting and redistributing sales territories Assigning sales territories to sales persons

Thus, setting up sales territories facilities the planning and control of sales operations. Well-designed territories assist to improve market coverage and consumer service expenses ratios, secure coordination of personal selling and advertising efforts, and improve the evaluation of personal performance.