1. Sales and Distribution
Management, 2e
Dr Tapan K. Panda, Great Lakes Institute of Management, Chennai
Dr Sunil Sahadev, University of Sheffield, UK
Copyright © 2011 Oxford University Press
Chapter 7: Management of Sales Territory

2. Chapter 7
Management of Sales Territory
Copyright © 2011 Oxford University Press
Chapter 7: Management of Sales Territory

3. Sales territory
• a group of present and potential customers assigned to
an individual
• sales person, a group of sales person, a branch, a dealer,
a distributor or a marketing organization at a given
period of time
Copyright © 2011 Oxford University Press
Chapter 7: Management of Sales Territory

4. Sales territory (contd.)
Advantages of designing a sales territory :
 it ensures better market coverage
 effective utilization of the sales force
 efficient distribution of workload among sales
people
 it is convenient to evaluate the performance of
sales people
 to control over the direct and indirect costs of the
sales function
 optimum utilization of sales time by sales people
Copyright © 2011 Oxford University Press
Chapter 7: Management of Sales Territory

5. Designing sales territories
Factors
influencing the
modifications of
a territory:
• mergers
• market
consolidation
• split in division
• sales force
turnover
• customer
relocations
• product life
cycle change
• product line
change
Copyright © 2011 Oxford University Press
Select the basic geographic
control units
Decide on the criteria for
allocation
Decide on the starting point
Combine control units
adjacent to starting point
Compare territories on
allocation criteria and
conduct workload analysis
Assign sales force to new
territories
Modify
territorial
boundaries
to balance
workload
and potential
Chapter 7: Management of Sales Territory

6. Territory shapes
circle
Copyright © 2011 Oxford University Press
wedge
Clover leaf
Chapter 7: Management of Sales Territory

7. Strategic Planning Matrix
Opportunity
H
i
g
h
The account offers a good opportunity. It
has high potential and the sales
organization has a differential advantage
in serving it.
Strategy
Commit high levels of sales resources to
take advantage of the opportunity.
L
o
w
Opportunity
The account offers stable opportunity
since the sale organization has differential
advantages to serving them.
Strategy
Allocate a moderate level of resources
to maintain current advantage.
Strong
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Opportunity
The account may represent a good
opportunity. The sales organization needs to
overcome its competitive disadvantages and
strengthen its position to capitalize on the
opportunity.
Strategy
Either direct a high level of sales
resources to improve the position and
to take advantage of the opportunity or
shift resources to other accounts.
Opportunity
The account offers little opportunity. Its
potential is small and the sales
organization is at a competitive
disadvantage in serving it.
Strategy
Either commit a minimal level of
resources to the account or consider
abandoning the account altogether.
Weak
Chapter 7: Management of Sales Territory

8. Sales Territories
New Territories..?
Use of Information Technology
 IT enabled services
 computer programmes
 simulation techniques
Copyright © 2011 Oxford University Press
Chapter 7: Management of Sales Territory