Sales Territory Design

Territory
Territory Design

chap #9

Wh Use Te
Why Use Territories
Territory is defined as customers located in geographic area that are assigned to an individual sales person.
Specialties include products, customers, or functions functions.

Moti
Motivation & Cost Saving
Cost Sa
Use to benefits people
Sales people responsible for whole area

Evaluation & Control Units
Cont Units
Performance of individual sales people can be more easily controlled and evaluated with sale territories.

Wh
Why Are Territories Unnecessary
Territories are not essential when sales people contact customers directly.

Territory
Territory Design Procedures
What are triggering events?
What are triggering events?
The
The Buildup Method -- Six steps
1. Select control units
Select control units
Census
Census tracts -- good for dividing cities
Counties convenient and data readily
Counties - convenient and data readily available available

2. Determine Allocation Criteria
Territory
Territory balance -- effect on morale
Customer
Customer balance - distribute commission
Potential
Potential balance - share business growth
Size
Size balance - reduce transportation costs

Events triggering sales territory adjustments

1
Select geographic control units

Mergers
Division consolidation
Division split
Sales force turnover
Plant relocations
Product line changes

2
Decide on allocation criteria
3
Choose starting points

4
Combine control units adjacent to starting points to starting points
5
Compare territories on allocation criteria
6
Assign salespeople to salespeople to new territories

Territory Design Process

Revise territory boundaries to balance workload and potential

Geographic Control Units Used in Territory Design
Geographic Control Units Used in Territory Design

Countries
States or provinces
Counties
Metropolitan areas

Cities
Zip codes
Census tracts tracts Customers

Territory