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Transcript of 412 33 Powerpoint Slides 7 Management Sales Territory Chap 7
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7/30/2019 412 33 Powerpoint Slides 7 Management Sales Territory Chap 7
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Copyright 2011 Oxford University Press Chapter 7: Management of Sales Territory
Sales and Distribution
Management, 2e
Dr Tapan K. Panda, Great Lakes Institute of Management, Chennai
Dr Sunil Sahadev, University of Sheffield, UK
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Copyright 2011 Oxford University Press Chapter 7: Management of Sales Territory
Chapter 7
Management of Sales Territory
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Copyright 2011 Oxford University Press Chapter 7: Management of Sales Territory
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
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Copyright 2011 Oxford University Press Chapter 7: Management of Sales Territory
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
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Copyright 2011 Oxford University Press Chapter 7: Management of Sales Territory
Designing sales territories
Select the basic geographiccontrol units
Decide on the criteria for
allocation
Decide on the starting point
Combine control units
adjacent to starting pointCompare territories on
allocation criteria andconduct workload analysisAssign sales force to new
territories
Factorsinfluencing the
modifications of
a territory:
mergers
market
consolidation
split in division
sales force
turnover
customer
relocations product life
cycle change
product line
change
Modify
territorial
boundaries
to balanceworkload
and potential
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Copyright 2011 Oxford University Press Chapter 7: Management of Sales Territory
Territory shapes
circlewedge
Clover leaf
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7/30/2019 412 33 Powerpoint Slides 7 Management Sales Territory Chap 7
7/8Copyright 2011 Oxford University Press Chapter 7: Management of Sales Territory
StrategicPlanningMatrix
Opportunity
Strategy
Opportunity
Strategy
Strategy
StrategyAllocate a moderate level of resources
to maintain current advantage.
Either commit a minimal level of
resources to the account or consider
abandoning the account altogether.
The account offers stable opportunity
since the sale organization has differential
advantages to serving them.
Opportunity
Opportunity
The account offers little opportunity. Its
potential is small and the salesorganization is at a competitive
disadvantage in serving it.
The account offers a good opportunity. It
has high potential and the sales
organization has a differential advantage
in serving it.
Commit high levels of sales resources totake advantage of the opportunity.
The account may represent a goodopportunity. The sales organization needs to
overcome its competitive disadvantages and
strengthen its position to capitalize on the
opportunity.
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.
Strong Weak
High
Low
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7/30/2019 412 33 Powerpoint Slides 7 Management Sales Territory Chap 7
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New Territories..?
Use of Information Technology
IT enabled services
computer programmes
simulation techniques
Sales Territories
