1.
A 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

2.
Sales Territory
Procedures for setting up sales territories
 Selecting a basic geographical control unit
1. States
2. Zip code areas
3. Cities
4. Metropolitan statistical areas
5. Trading Areas

3.
Sales Territory
 Determining Sales potential present in each control
unit
 Determining sales potential present in each control
unit
 Combining control units into tentative territories
Territory shape
1. Circle
2. Wedge
3. Clover leaf

4.
Sales Territory
 Adjusting for differences in coverage difficulty and
redistricting tentative territories
1. Determine number ,location and size of customers and
prospects in each tentative territory.
2. Estimate time required for each sales call
3. Determine length of time between calls
4. Decide call frequencies
5. 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.

5.
Sales Territory
 Deciding assignment of sales personal to territories.
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 Routing and scheduling sales personal