alesSales territories are composed of group of customers or a geographic area assigned to a sales person who can effectively and economically serve customers of that particular area. However sales territories are just not about assigning geographical areas to sales persons, the following are the steps to follow in designing sales territories; * Select basic control unit.
* Analyze workload.
* Determine basic territories.
* Assign territories.
* Customer contact plan.
* Evaluate, revise if needed.
The objectives of sales territories are to;
* Facilitate effective sales planning.
* Cover and manage the entire market.
* Assign salesman responsibilities.
* Reduce selling costs.
* For marketing research.
* Improve customer relations
Establishing or revising sales territories is very important for every marketing firm. This work is focused on identifying the reasons for establishing or revising sales territories but before I tackle that I would like to outline the procedure for setting up or revising sales territories:
* Selection of basic geographical control unit.
* Determine sales potentials on the basic unit.
* Combine the basic units into tentative sales territories. * Adjust and redistribute sales territories.
* Assign sales territories to sales persons.
Moving on to the main work, the following are the reasons identified for establishing or revising sales territories;
1. To provide proper market coverage:
Firstly, a well established or revised sales territory assists to improve the number active retail and/or wholesale outlets of a firm. This ensures that products are made available to potential customers to have easy access. 2. To assist evaluating performances of sales persons: Sales persons are selected to assist in increasing sales and profits, build customer relations among many. Establishing sales territories thereby helps a firm to know how much they (sales persons) are...
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