The document discusses sales territories and factors involved in defining them such as obtaining thorough market coverage, establishing salesperson responsibility, and improving customer relations. It also mentions reasons why companies may not define sales territories such as salespeople being unmotivated by restrictions or the company being too small. The document then lists different approaches that can be used to define territories such as by states, counties, cities, or major accounts.

1. PRESENTED BY:
Taniya Kharbanda
Karishma Punj

2. A
sales territory is a grouping of customers
and prospects assigned to an individual
salesperson

3.  To
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
customer.
 To benefit salespeople and the company.

4.  Salespeople
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
attracting customers.

6.  States
 Counties
 Cities
and zip-code areas
 Metropolitan statistical areas
 Trading areas
 Major accounts
 A combination of two or more factors

7.  Intensive
distribution
 Selective distribution
 Exclusive distribution

8.  The
breakdown approach uses factors such as
sales, population, or number of customers.
 Sales
Force Size = Forecasted Sales
Average Sales per Salesperson

10.  This
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.
 Non-selling time.

15.  Satisfying
part of the service needs of
accounts by telephone
 Assigning smaller accounts to telephone
selling.
 Doing prospecting, market data gathering,
and call scheduling by telephone.
 Carefully scheduling visits to distant
accounts, replacing some with telephone
calls