Establishing or designing sales territories is not easy work. It requires proper planning and consideration of various factors. While designing sales territory certain principles must be considered.
Factors Influencing the Designing of Sales Territory
The following factors must be kept in mind while establishing designing or allocating sales territory:
1. Equal Distribution of Market
The object of sales territory design is to divide the total market into different market units.
This establishment must be based on equal workload and equal size of sales territories.
This will provide justice to the salesman on one side and total satisfaction to customers on the other.
2. Equality of Opportunities
While establishing or designing sales territory, care and must be taken to provide equal opportunities for growth and success to all related classes.
Sales territories must be established in such a way that all the salesmen, middleman and branch personnel of a territory get equal opportunities for promotion and remuneration.
Related: 23 Benefits of Designing Sales Territory.
3. Elimination of Duplication of Work
While establishing sales territories, care must be taken to avoid duplication of work.
A salesman must be allotted a specified territory to conduct business at a given time.
4. Flexibility in Allocation
The allocation of sales territory must b flexible so as to adjust the change in market, demand and territorial customer structure.
But as far as possible too many changes must be avoided.
5. Ease in Performance
While establishing sales territories, the easiness of work performance must also be considered.
The formation should be in such a way that evaluation of every sales territory and of the sales salesmen working in it, can be made easily and continuously.
The establishment of sales territories must be controllable.
It must provide a control mechanism over the sales activities at a minimum cost.
The establishment of sales territories must be designed in such a way so that a comparative study of sales achievements and work performance of each salesman, can be made in an efficient way. 15 Role and Nature of Sales Promotion (With Example).
8. Uniformity of Income
The designing of sales territories should be made in such a way that all the salesmen can have the chance to do business at par.
Non-profitable sales territories should not be allotted because inequality in income may develop dissatisfaction among the salesman.
The designing of sales territories must be such which can keep the traveling expenses of the salesman at the minimum.
The sales territories should provide the maximum benefits and opportunities for profits at the minimum cost.
The size and workload of every sales territory should be such that a sales territory can create a challenge for the salesman.
The sales territories should also create a sense of friendly competition among salesmen.
The size, form, and imitations of every sales territory should be fixed and certain.
This will facilitate good performance on the part of the salesman.
12. Allocation of New Salesmen
New salesmen should not be given the total responsibility of a sales territory.
He should be kept as an understudy of an experienced salesman so that he can develop salesman’s sales skills and abilities gradually.
13. Ease in Evaluation
The sales territories must be determined in such a way that evaluation of every sales territory and of the salesman working in it, can be made easily and continuously.
Thus, now you know what types of factors influencing the designing of sales territory.