sales territory is a grouping of customers
and prospects assigned to an individual
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
To benefit salespeople and the company.
may be more motivated if they
are not restricted.
The company may be too small.
Management may not want to take the time,
or have the know-how.
Personal friendship may be the basis for
and zip-code areas
Metropolitan statistical areas
A combination of two or more factors
breakdown approach uses factors such as
sales, population, or number of customers.
Force Size = Forecasted Sales
Average Sales per Salesperson
method uses the number, location, and size of
customers and prospects to determine the
frequency of sales calls and amount of time a call
takes by using such data as:
Time required for each sales call.
Frequency of sales calls per given customer
Time intervals between sales calls.
Travel time around territories.
part of the service needs of
accounts by telephone
Assigning smaller accounts to telephone
Doing prospecting, market data gathering,
and call scheduling by telephone.
Carefully scheduling visits to distant
accounts, replacing some with telephone