Definition:A sales territory is a grouping of customers and prospects assigned to an individual sales person.
In reality, sales planning are done on the basis of sales territory, depending on the characteristics of customer and prosperity vary from one sales territory to another, and some times even from one zone to another zone, or country, a territory is more homogenous unit than the market as a whole,.
Breaking down the total market into smaller units makes control of sales operations more effective. Assigning responsibility for achieving specific objectives to subordinate line executives and individual sales personnel bring selling efforts into alignment with sales opportunities. The emphasis in sales territory concept is upon customers and prospects rather than upon the area in which an individual sales person works.