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Sales territory
Consists of
Sales Territories
A number of present and potential
customers, located within a given
geographical area and assigned to a
salesperson, branch, or intermediary
Dr.Pusanisa Thechatakerng
thesunny@rocketmail.com
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Enhances customer
coverage ทําใหลูกคามากขึ้น
ในเขตนั้น – control sales
reps activities
Design Territories
Reduces travel
time and selling
costs
Benefits of good territory
Provides more
equitable/fair rewards to
sales reps, Aids evaluation
of sales force
Increases morale –
good territory design
results in productive
sales person who are
being evaluated &
rewarded in a fair
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manner
1. Determine basic control unit for
Territorial Boundaries
Region – N, S
province
City
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1. Select a control unit for territorial
boundaries - เลือกหนวยควบคุม
2. Determine location and potential of
customers - ตัดสินใจเรื่องพื้นที่และลูกคาที่คาดหวัง
3 Determine basic territories (Build up or
3.
Break down)
4. Assign salespeople to territories
5. Set up territorial coverage plans for sales
force วางแผนจัดตั้งอาณาเขตขายเพื่อผลักดันยอดขาย
6. Evaluate the effectiveness of the design
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on a continuing basis
2. Determine location & potential of
customer
• Location - from each selected control unit
• Prospective customers – identified with the
aid company sales reps & outside source
Zip-code area
– Trade
T d directories
di t i
– Subscription lists from trade journals
– Classified telephone directories
Sales territory
Control unit
Metropolitan
statistical area
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3. Determine basic Territories
Buildup method of territorial design
• Buildup method
– Combine small geographical areas based on
the number of calls a salesperson is expected
to make
– Suited for manufacturers of consumer products
or companies that want intensive distribution
• Breakdown method
– Approximately equal segments based on sales
potential
– More popular among manufacturers of
industrial products that want selective
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distribution
Customer Call
Class Frequency
A
B
C
2 per month
1 per month
1 every 2 ms
10
25
15
50
240
300
90
630
5
15
60
80
•Call frequency per
account per year
Workload capacity
Total calls needed
in each control group
•Total calls p
possible
per rep per year
= number of daily calls
x days selling
Tentatively/probation set
territorial
Boundary lines by combining
Modify territory as
needed
Control units until total calls
Needed = total calls possible
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For firms that want exclusive/mono distribution or that sell
some type of industrial products
Metropolitan
Area Y
No. of
No.of
oo
Calls per
No.of
Year
Accounts
Accounts
Design call patterns
Breakdown method of territory design
Example of call frequency for
different customer classes
Metropolitan
Area X
Management must
determine
No.of
Calls
Per
Year
120
180
360
660
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4. Assigning Salespeople to
Territories
Management must
determine:
Company sales
potential
Sales volume expected
from each salesperson
Tentatively/probation set
territorial
boundary lines by combining
control units until total sales
potential = expected sales volume
Sales potential in
each control unit
Territorial
Modification as
needed
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5. Revising Sales Territories
• Reps differ in selling effectiveness and
• Indications of need for adjustment
– Experience, age, physical condition, creativity,
selling skills
• Sales rep may succeed in one territory &
fail in another
– Territorial potential Increased during the time
– Selling task changes – demanding more
value-added
value
added services
– Territories are too small
• Sales performance also may be influenced
by differences in local customs religion,
and ethnic background
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Routing the sales force (I)
1. Straight line pattern (A)
1. Straight line pattern (B)
ลูกตารายแรก
Base
Area A
X
ลูกคา
Area B
ลูกคา
ลูกคา
ลูกคา
Area C
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Routing the sales force (III)
Routing the sales force (II)
2. การเดินทางแบบใบไม
3. การเดินทางในเมืองหลัก
(3)
(2)
จุดฐาน
ยานการคา
(1)
(5)
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(4)
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Case
• Sales people normally are prohibited from going
outside their territorial boundaries in search of
business. Sometimes, however, a customer
located in one district will voluntarily seek out a
sales rep or branch office located in another
district. Perhaps this customer can realize a
price advantage by buying outside his or home
area
area.
– What should be the position of the seller in these
situations?
– Should it rejects such business? Why?
– Should it insists the order be placed in the territory
where the customer is located? Why?
– If the order is placed in the foreign territory, should
the salesperson in the customer’s home territory be
given any commission or other credit? Why?
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