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 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

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

CharacteristicsPotential customersDifferent groups of customersGeographical area assign to a salespersonEffectively & Economically

Objectives of sales territories

To 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 territories

To 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 territories

Nature of the productsDemand for the productMode of distributionSelling expensesTransport & Communication facilitiesGovt. policyDensity of population

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Market potentialitiesState of competitionAbilities of salesmanFirm’s policiesEconomic condition prevailing in the country

Factors to be kept in mind while Allocating sales territories

Even distribution coverage/ uniform coverageElimination of duplication of activitiesEqual opportunityFlexibility in allocationControllableCapable of comparative study

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Uniformality in incomeEconomicalEfficient performanceAllocation to new salesmen

Routing & Scheduling sales personnel

Advantages of Routing & Scheduling

Routing & 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 Territories

Selection of basic geographical control unitDetermining sales potentials on the basic unitsCombining the basic units into tentative sales territoriesAdjusting and redistributing sales territoriesAssigning 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.