This document provides an overview of sales territories including what they are, reasons for establishing them, and the procedures for setting them up. A sales territory groups customers and prospects and assigns them to an individual salesperson based on geographical area or customer type. Establishing territories helps provide market coverage, control sales expenses, evaluate sales personnel, improve morale, and coordinate selling and advertising efforts. The process of setting up territories involves selecting a geographical control unit, determining sales potential, adjusting for coverage difficulties, and combining control units into tentative territories.

1. PRESENTATION ON
SALES TERRITORY
Prepared by:-
Arup Dasgupta
NU/MN-02/10

2. What is sales territory?
- A sales territory is a grouping of customer and
prospects assigned to an individual salesperson.
- Here, the emphasis is on the customer, not on their
location.
-It may also be assigned by type of customers, as all
retailers or all wholesalers in geographical area.

3. REASONS FOR ESTABLISHING SALES
TERRITORY
1)Providing proper market coverage.
2) Controlling sales expenses.
3) Assisting in evaluation sales personnel.
4)Contributing to sales force morale.
5)Aiding in coordination of personal selling and advertising.

4. PROCEDURES FOR SETTING UP
SALES TERRITORIES
Selecting a basic Determining sales
geographical control potential present in
unit. each control unit.
Adjusting for
differences in coverage Combining control unit
difficulty and into tentative
redistricting tentative territories
territories.

5. CONCLUSION
 Setting up sales territories facilitates the planning and
control of sales operations. Well-designed territories
assists in attempts to improve market coverage and
customer service, reduce selling expenses ratios,
secure coordination of personnel-selling and
advertising efforts, and improve the evaluation of
personnel performance.

6. THANK YOU