1) Setting up sales territories and time management helps salespeople work more efficiently and effectively. It allows for better market coverage, reduced costs, and improved customer service. 2) When salespeople are responsible for specific territories, it increases accountability. Properly sized territories allow for adequate coverage while minimizing transportation and other costs. 3) Companies must carefully determine territory boundaries and assign the right salespeople based on their skills, experience, and other qualities to maximize performance. Minimizing changes over time helps maintain strong customer relationships and salesforce morale.

1. Territories and
Time Management
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2. Time Management:
Refer exhibit 12.2 & 12.3
Benefits:
a) Better market coverage: amount of time
and money spent must be proportionate to
size of account
b) Reduce selling costs: customer and crucial
decision maker has to be identified so that
wastage of time and money in pursuing
wrong people can be avoided.
c) Improved customer service: taking
appointments sales force automation helps
in time management
d) Can be a performance evaluator
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3. Sales Territories
Benefits:
a) When a salesperson is responsible for a
particular territory, accountability.
b) Size must be optimal; large: coverage;
small: too many calls
c) Reducing sales costs in transportation /
food / lodging.
d) Strong Customer Relationships – can give
more time.
e) Enhance sales force motivation; ASM takes
pride in his territory; well designed ST
improves morale, ensures reasonable
workload, encourages equitable rewards
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4. How to set up Territories?
1. Determine potential in sales & prospects
2. Selecting geographical control unit – small
size makes management easier – adjusting
territories becomes easier.
3. Sales person workload analysis; no. of
effects, cold calls, prospects, time allotted
4. Divide into territories of equal potential –
computerization helps
5. Service requirement of existing and
potential customers
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5. How to set up Territories?
6. Assigning the right personnel, salespeople
with high initiative, experience can be given
to high potential territories.
While assigning sales people to territories a
mgr. has to consider
 Qualities – industry knowledge
 Qualifications
 Characteristics – persuasive abilities, verbal
communication
 Experience
Match salesperson to territory.
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6. How to define Sales Territory?
1. Know you Market:
 Having defined market, list all potential
prospects; maintain master list
2. Score potential opportunities: A, B, C…
3. Draw borders:
 List of potential customers can be uploaded
to mapping programs for geographical
territories
 If different products cater to different
industries; then map by industry.
 You can also map by size & buying power
4. Involve Sales Team
5. Minimize future changes
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7. Company needs to avoid Sales Territory Wars
Single most important factor of a SP’s success is
tenure in territory; so avoid changing / redefining
territories / sales rep.s – demotivates customer / SP.
both.
Small territory – less travel – more selling – more
managerial positions – career opportunities
However, division of existing territories – morale
issues – less earning for salesperson if he loses key
a/c.
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8. When are Sales Territories Revised?
 When initially they have not been designed
carefully.
 Overestimation / underestimation of work
load or sales potential
 Changing market conditions
 Faulty Management
 Growth of business
 Increased sale force
 Competition
 Changed Management Philosophies
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