Sales Territory Management

Sales Territory Management

By:- Pallav Kaushik Bpit mba 2008-10 0472083908

Sales Territory Group of customers or a geographical area assigned to

a sales unit.

It may or may not have a geographic boundaries. It represents a group of customer accounts, an

industry, a market or a specific geographical area.

© Pallav Kaushik, BPIT, 2008-10

Reasons to establish Sales Territories To obtain entire coverage of the market. To establish a salesperson’s responsibilities. To evaluate performance. To improve customer relations. To reduce sales expenses. To allow better matching of salesperson to customers. To benefit salespeople and the company.

© Pallav Kaushik, BPIT, 2008-10

Designing sales territories. 1. Selecting a basic geographical control unit. 3. Determining sales potentials in control unit. 5. Combining control units into tentative territories. 7. Adjusting for coverage difficulty and reallocating tentative territories.

© Pallav Kaushik, BPIT, 2008-10

Approaches of territory design.

Market build-up approach Looked how the market is built up? Estimation of present and potential product/services

demand.

Present/potential users. Consumptions and frequency.

© Pallav Kaushik, BPIT, 2008-10

Process of Market build-up approach.

© Pallav Kaushik, BPIT, 2008-10

Cont……

Sales territories are then formed in such a manner that the sales potential and work load is distributed among areas.

© Pallav Kaushik, BPIT, 2008-10

The workload approach Designed by WJ Talley.

Based on workload performed by salesperson.

© Pallav Kaushik, BPIT, 2008-10

Workload approach process Customer grouping Call frequency estimation Arrangement of customers Number of planned call required

© Pallav Kaushik, BPIT, 2008-10

Thank you