TERRITORY DESIGNING

PRESENTED BY
ASHISH KUMAR
SHARMA

1
 WHAT IS A SALES
TERRITORY?
A sales territory is composed of
a group of customers or a
geographic area assigned to a
salesperson.

It is very useful as if the sales

persons are told on which
areas to concentrate
specifically they can do their
jobs in a better way.

\ 2
 WHO IS RESPONSIBLE FOR
TERRITORIAL
DEVELOPMENT?
Development of sales territories is
usually the responsibility of the sales
manager overseeing the larger sales
units within the organization.

It is also his job to take day to day

report of the sales persons assigned
different territories based on
customers or geographic area etc.

3
WHY ESTABLISH SALES
TERRITORIES?
1.Better
coverage
2.reduced selling
costs

3.improved customer
service

4.more accurate
evaluation of performance

5.To improve customer relations.

4
 WHY SALES TERRITORIES
MAY NOT BE DEVELOPED?
1.sales coverage is far below sales potential - e.g., a new
company wants to cherry pick for the most profitable prospects
first.
2.the sales force is highly specialized - e.g., when the salesforce is
organized along the lines of product specialty rather than along
the lines of customer location.
3.sales are made on the basis of personal contacts and
by referrals.
4.Salespeople may be more motivated if they are not
restricted.

5.The company may be too small.

5
 WHO IS RESPONSIBLE FOR
TERRITORIAL
DEVELOPMENT?
● Are used to manufacture
other products
Key is
● Become part of another intended
product use
● Aid the normal operations of
an organization
● Are acquired for resale
without change in form

6
 2 Internet Marketing Opportunities
http://www.gepolymerland.com
http://www.gepolymerland.com

● Increase efficiency
● Reduce costs
● Improve customer service
● Create one-to-one relationships
● Introduce new products
● Expand markets
Chapter 6 Marketing 7e Lamb Hair McDaniel 7
©2004 South-Western/Thomson Learning
 2 Benefits of Marketing on the Internet
http://www.covisint.com
http://www.covisint.com

1.
1. Lower
Lower prices
prices

2.
2. Greater
Greater selection
selection of
of products
products and
and vendors
vendors

3.
3. Access
Access to
to customer
customer and
and product
product sales
sales data
data

4.
4. Around-the-clock
Around-the-clock ordering
ordering &
& customer
customer service
service

5.
5. Lower
Lower costs
costs

6.
6. Customized
Customized products
products
Chapter 6 Marketing 7e Lamb Hair McDaniel 8
©2004 South-Western/Thomson Learning
 3 Strategic Alliance
A cooperative agreement
between business firms
(strategic partnership).

3 Keiretsu
A network of
interlocking
corporate affiliates.

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©2004 South-Western/Thomson Learning
 4 Categories of Business Customers
http://www.cbd-net.com
http://www.cbd-net.com
http://www.governmentbids.com
http://www.governmentbids.com

Producers

Resellers
Categories
of Business
Customers
Governments

Institutions
Chapter 6 Marketing 7e Lamb Hair McDaniel 10
©2004 South-Western/Thomson Learning
 5 NAICS

A detailed numbering
system developed by the
U.S., Canada, and Mexico
North American to classify North American
Industry business establishments
Classification
System by their main production
processes.

Chapter 6 Marketing 7e Lamb Hair McDaniel 11

©2004 South-Western/Thomson Learning
 5 Examples of NAICS

Chapter 6 Marketing 7e Lamb Hair McDaniel 12

©2004 South-Western/Thomson Learning
 5 NAICS

● Provides common industry classification

system

● Valuable tool for marketers in analyzing,

segmenting, and targeting markets

● Data can be used to determine:

 Number, size, and geographic

dispersion of firms
 Market potential / market share estimates
 Sales forecasts
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©2004 South-Western/Thomson Learning
 6 Business vs. Consumer Markets
Characteristic
Characteristic Business
Business Market
Market Consumer
Consumer Market
Market
Demand
Demand Organizational
Organizational Individual
Individual
Volume
Volume Larger
Larger Smaller
Smaller
## of
of Customers
Customers Fewer
Fewer Many
Many
Location
Location Concentrated
Concentrated Dispersed
Dispersed
Distribution
Distribution More
More Direct
Direct More
More Indirect
Indirect
Nature
Nature of
of Buy
Buy More
More Professional
Professional More
More Personal
Personal
Buy
Buy Influence
Influence Multiple
Multiple Single
Single
Negotiations
Negotiations More
More Complex
Complex Simpler
Simpler
Reciprocity
Reciprocity Yes
Yes No
No
Leasing
Leasing Greater
Greater Lesser
Lesser
Promotion
Promotion Personal
Personal Selling
Selling Advertising
Advertising
Chapter 6 Marketing 7e Lamb Hair McDaniel 14
©2004 South-Western/Thomson Learning
 6 Demand in Business Markets

Demand
Demand is...
is... Description
Description

Demand
Demand for
for business
business products
products results
results
Derived
Derived from
from demand
demand for
for consumer
consumer products
products

A
A change
change inin price
price will
will not
not significantly
significantly
Inelastic
Inelastic affect
affect the
the demand
demand forfor product
product
Multiple
Multiple items
items are
are used
used together
together in
in final
final
Joint
Joint product.
product. Demand
Demand for
for one
one item
item affects
affects all
all
Demand
Demand forfor business
business products
products is
is more
more
Fluctuating
Fluctuating volatile
volatile than
than for
for consumer
consumer products
products
Chapter 6 Marketing 7e Lamb Hair McDaniel 15
©2004 South-Western/Thomson Learning
 6
Multiplier Effect
(Accelerator Principle)

Phenomenon in which a
small increase or decrease
in consumer demand can
produce a much larger
change in demand for the
facilities and equipment
needed to make the
consumer product.
Chapter 6 Marketing 7e Lamb Hair McDaniel 16
©2004 South-Western/Thomson Learning
 7 Types of Business Products
http://www.pmpa.org
http://www.pmpa.org

Major
Major Equipment
Equipment
Accessory
Accessory Equipment
Equipment
Raw
Raw Materials
Materials
Component
Component Parts
Parts
Major
Major Processed
Processed Materials
Materials
Categories
Categories
of Supplies
Supplies
of Business
Business
Products
Products Business
Chapter 6 Marketing 7e Lamb Hair McDaniel
Business Services
Services
17
©2004 South-Western/Thomson Learning
 8 Business Buying Behavior

Buying
Buying Centers
Centers

Evaluation
Evaluation Criteria
Criteria
Aspects
Aspects of
of
Business
Business
Buying Buying
Buying Situations
Situations
Buying
Behavior
Behavior
Purchasing
Purchasing Ethics
Ethics

Customer
Customer Service
Service
Chapter 6 Marketing 7e Lamb Hair McDaniel 18
©2004 South-Western/Thomson Learning
 8 Buying Center
http://www.loctite.com
http://www.loctite.com
http://www.napm.org
http://www.napm.org

All those persons in

an organization who
become involved in
the purchase decision.

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©2004 South-Western/Thomson Learning
 8 Roles in the Buying Center

Initiator
Initiator Influencers
Influencers Gatekeepers
Gatekeepers

Decider
Decider Purchaser
Purchaser Users
Users

Chapter 6 Marketing 7e Lamb Hair McDaniel 20

©2004 South-Western/Thomson Learning
 8 Roles in the Buying Center

Chapter 6 Marketing 7e Lamb Hair McDaniel 21

©2004 South-Western/Thomson Learning
 8
Evaluative Criteria for
Business Buyers

Chapter 6 Marketing 7e Lamb Hair McDaniel 22

©2004 South-Western/Thomson Learning
 8 Buying Situations

New
New Buy
Buy Modified
Modified
Rebuy
Rebuy

Straight
Straight
Rebuy
Rebuy

Chapter 6 Marketing 7e Lamb Hair McDaniel 23

©2004 South-Western/Thomson Learning
 8 Buying Situations

A
A situation
situation requiring
requiring the
the purchase
purchase
New
New Buy
Buy of
of aa product
product for
for the
the first
first time.
time.

A
A situation
situation where
where the
the purchaser
purchaser wants
wants
Modified
Modified some
some change
change in
in the
the original
original good
good or
or
Rebuy
Rebuy service.
service.

A
A situation
situation in
in which
which the
the purchaser
purchaser
Straight
Straight reorders
reorders the
the same
same goods
goods oror services
services
Rebuy
Rebuy without
without looking
looking for
for new
new information
information or
or
investigating
investigating other
other suppliers.
suppliers.
Chapter 6 Marketing 7e Lamb Hair McDaniel 24
©2004 South-Western/Thomson Learning