Description
A sales territory is the customer group or geographic district for which an individual salesperson or sales team holds responsibility. Territories can be defined on the basis of geography, sales potential, history, or a combination of factors. Companies strive to balance their territories because this can reduce costs and increase sales.
Advantages of setting up sales territories
? Maintain and increase market coverage
? Controlling sales expenses ? Better evaluation of sales force performance
? Maintain and improve customer relations
? Increase sales force effectiveness ? Improve co-ordination with marketing team
Situations where setting up sales territory is not advisable
? For small companies which have slim sales force size
? When personal contacts or relationships are the basis
of marketing a product or a service eg: Insurance policy or network marketing (Amway,Oriflame,etc) ? Not suitable for products which adopt exclusive distribution model
Factors to be considered for sales territory mapping
? Topography/geography of the region
? Development level of transport infrastructure ? Format of the transport infrastructure
? Availability of modes of public transport
? Density of customers
Routing and scheduling
1) Straight Line Plan
Base
C5
C4
C 3
C2
C1
Routing and scheduling
1) Hopscotch Route Plan
C4
C2 C1
C4
C2 Base C 3 C1
C5 C 3
C5
2) Circular Route Plan
Base
? Clover Leaf Plan
Base
Use of IT in Territory Management
? Software available in market like Arc Editor, Arc
? ? ? ?
GIS,etc Can help devise multiple permutations and combinations for optimal territory planning High cost of software Does not factor in intangible factors Does not factor in local infrastructure details of each territory
doc_462155765.pptx
A sales territory is the customer group or geographic district for which an individual salesperson or sales team holds responsibility. Territories can be defined on the basis of geography, sales potential, history, or a combination of factors. Companies strive to balance their territories because this can reduce costs and increase sales.
Advantages of setting up sales territories
? Maintain and increase market coverage
? Controlling sales expenses ? Better evaluation of sales force performance
? Maintain and improve customer relations
? Increase sales force effectiveness ? Improve co-ordination with marketing team
Situations where setting up sales territory is not advisable
? For small companies which have slim sales force size
? When personal contacts or relationships are the basis
of marketing a product or a service eg: Insurance policy or network marketing (Amway,Oriflame,etc) ? Not suitable for products which adopt exclusive distribution model
Factors to be considered for sales territory mapping
? Topography/geography of the region
? Development level of transport infrastructure ? Format of the transport infrastructure
? Availability of modes of public transport
? Density of customers
Routing and scheduling
1) Straight Line Plan
Base
C5
C4
C 3
C2
C1
Routing and scheduling
1) Hopscotch Route Plan
C4
C2 C1
C4
C2 Base C 3 C1
C5 C 3
C5
2) Circular Route Plan
Base
? Clover Leaf Plan
Base
Use of IT in Territory Management
? Software available in market like Arc Editor, Arc
? ? ? ?
GIS,etc Can help devise multiple permutations and combinations for optimal territory planning High cost of software Does not factor in intangible factors Does not factor in local infrastructure details of each territory
doc_462155765.pptx