A sales territory is a geographical area containing present and potential customers who can be effectively and economically served by a single salesman, branch dealer or distributor.
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Sales territory design and management are important to the success of the sales force.
Aspects and Characteristics of Sales Territory
Following are the important aspects and characteristics of sales territory
- A sales territory is the geographic area containing a number of present and potential customers.
- Different groups of customers are formed by a firm through allotment of territories.
- A sales territory is assigned to a salesman, branch or middlemen.
- Although some firms have developed territories solely on the basis of geographic considerations, a more common approach is to establish a sales territory on the basis of class of customers.
- Territories are often classified according to sales potential.
- Sales territory is the basic unit of the sales planning and sales control. 14 Limitations or Problems in Setting Sales Quota (Explained).
- It represents a certain segment of the future sales and profit of the company.
- It is a sales field of a company, from which demand for a certain class of goods is likely to arise.
- This territory may be local, provincial, national or international.
- The emphasis in the sales territory concept is upon customers and prospects rather than upon the area in which an individual salesperson works.
characteristics of sales territory - Whether designated geographically or not, a sales territory is a grouping of customers and prospects that can be called upon conveniently and economically by an individual salesperson.
- A sales territory may or may not have geographic boundaries.
- A sales territory can be thought of as a franchise from which must come sufficiently to be profitable to management, who underwrites it, and to the salesperson responsible for working it.
- Territories are well suited to most selling situations.
- Territories are a long-lasting structural arrangement. 23 Key Benefits and Importance of Establishing Sales Territory (With Examples).
- Since sales territories are microcosms of a firm’s total market, this involves scaled-down managerial duties.
- As territory managers, salespeople must first be planners. It is the responsibility of the sales representatives to plan their activities in their territories.
- Each sales territory must be cohesive in a way that promotes the efficiency and effectiveness of the sales effort.
Thus, now you know all the important aspects and characteristics of sales territory.
What defines a sales territory?
The sales territory is an important business unit containing the organization’s customers.
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