Reasons for eastablishing Sales Territories:
Sales territories play a major role in plannig and control of sales operations. Follwing are the some of the reasons for having sales territories.
- To provide proper market coverage.
- To control selling expenses.
- To assist in evaluation sales personnel.
- To contribute to sales force morale.
- To aid in the co-ordination o persnnel sllng and advertising efforts.
Steps involved in setting up sales territories:
in setting up sales territories, there are four major steps-
- Selecting a basic gegraphical control unit.
- Determining sales potential in control units.
- Combining control units into tentative territories.
- Adjusting for coverage difficulty and redistricting tentative territories.