Sales TerritoryA sales territory is a grouping of customers and prospects as signed to an individual salesperson

Reasons for establishing sales territories•Providing proper market coverage•Controlling Selling Expenses•Assisting in Evaluating Sales Personal•Contributing to sales force morale•Aiding in coordination of personal selling and advertising

Sales TerritoryProcedures for setting up sales territories

Selecting a basic geographical control unit

1. States2. Zip code areas3. Cities4. Metropolitan statistical areas5. Trading Areas

Sales TerritoryDetermining Sales potential present in each

control unitDetermining sales potential present in each

control unitCombining control units into tentative

territories Territory shape1. Circle2. Wedge3. Clover leaf

Sales TerritoryAdjusting for differences in coverage

difficulty and redistricting tentative territories1. Determine number ,location and size of customers

and prospects in each tentative territory.2. Estimate time required for each sales call3. Determine length of time between calls4. Decide call frequencies5. Calculate the number of calls within a given period.6. Adjust the no. of calls possible during a given period

by the desired call free frequencies for the different classes of customers and prospects.

7. Finally, check out adjusted territories with sales personal.

Sales TerritoryDeciding assignment of sales personal to

territories.DSC_0176.jpgRouting and scheduling sales personal