3.
Increase market or customer coverage.
Control selling expenses
Better evaluation of sales force performance
Improve customer relations
Increase sales force effectiveness
Improve co-ordination
Benefit salespeople and company
4.
A small company
Selling in a local market
Personal contacts
Management may not be aware of the advantage of sales territory
5. Use build
Use build
method
method
Select a
Select a
control unit
control unit
Find location
Find location
and potential
and potential
customer
customer
Decide
Decide
basic
basic
territiories
territiories
Use
Use
breakdown
breakdown
method
method
6. Control unit-
Control units are states, metros, cities,
districts, towns, pin code area, industrial
estates and major customer.
7. Find location and potential customer
In this step find the location and sales potential of present
and prospective customers in each control unit.
Information of present customer should be available from
the company' sales analysis , market research studies.
9. Build –up method
•Decide call frequencies
•Calculate total number of calls in each control unit
•Estimate workload capacity of a sales person
•Make tentative territories
•Develop final territories
10. Break down method
•Estimate company sales potential for total market
•Forecast sales potential for each control unit
•Estimate sales volume expected from each salespeople
•Make tentative sales territories
•Develop final territories
11. Assigning salespeople to territories
•Relative ability of sales people
•Sales person’s effectiveness in a territory