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MANAGMENT
Lecture 10
October 30th, 2019
Learning Objectives
• Understand the nature & scope of territory management
• Identify the reasons for establishing and revising
territories
• Describe the objective, criteria & basis for territory
formation
• Outline a model of territory management
• List and discuss routing pattern
Defining the term
Sales Territory
Sales Territory
• It is a configuration of current and potential accounts, for
which responsibility has been assigned to a particular sales
representative
• Geography
• Market Potential
• Servicing Required
• Workload
National
Regional North
South
Areas
Area Sales Managers Pindi
F. Abad
Multan
Lahore 2
Lahore 1
Bahawalpur
Sales Rep’s Territory
Based on Area (Geography)
• Sales force is selling less, senior executives are looking to the sales
organizations to improve their performance
▫ Administrative tasks
▫ Internal Meetings
▫ Travel
CHALLENGES FOR SALES FORCE
• Selling cost has gone up faster than sales volumes
• Sales force is selling less, senior executives are looking to the sales
organizations to improve their performance
▫ Administrative tasks
▫ Internal Meetings
▫ Travel
REASON FOR CREATING
SALES TERRITORIES
Reasons for Creating Territories
• Sales territories lead to accountability at lowest level
• To ensure/obtain thorough market coverage
• To improve customer relations
• To establish each salesperson’s responsibility
• To evaluate performance of each individual
• To enhance control
• To benefit both, salesperson and the company
Reasons for Creating Territories
• Intensive market coverage - Produce higher sales
Strategies
Call frequencies
Product offering
Pricing Calling prospects
Servicing account
Tactics Reporting
Service Require
Territory coverage Implementation
Routing
Scheduling
Managing Territories
Plans activity
• Establishes objectives
• Estimates the resources needed
• Designs strategies
(efficient utilization of resources to ach objective)
Implements
• Puts the plan into action
Control
• Feed back mechanism
Routing Techniques in
Territory Management
Routing in Territory Management
• Territory routing plans incorporate information
developed in the territory analysis