A sales territory is the customer group or geographic district for which an individual salesperson or sales team holds responsibility. Territories can be defined on the basis of geography, sales potential, history, or a combination of factors. Companies strive to balance their territories because this can reduce costs and increase sales.A sales territory consists of existing and potential customers assigned to a sales person. The territory may or may not have geographic boundaries. Territories consist of whatever specific accounts are assigned to a specific salesperson. The territory can be viewed as the work unit for a salesperson.
The sales potential in a territory can be determined as follows:
Sales potential ($) = Number of possible accounts (#) x Buying power ($)
"Buying power is a dollar figure based on such factors as average income levels, number of businesses in a territory, average sales of those businesses, and population demographics. Buying power indices are generally specific to individual industries," but on a whole, definitions of buying power tend to be more an art than a science.
"In addition to workload and sales potential, a third key metric is needed to compare territories. This is size or, more specifically, travel time. In this context, travel time is more useful than size because it more accurately represents the factor that size implies – that is, the amount of time needed to reach customers and potential customers.
"As a manager’s goal is to balance workload and potential among sales personnel, it can be beneficial to calculate combined metrics – such as sales potential travel time – in order to make comparisons between territories."
Reasons for territories:
The reasonable of territories of sales person are as:
                      Increase / improve customer coverage
                      Control selling expenses
                      Effective evaluation of salesman’s performance.
                       improve customer relations
Territory Considerations:
                      Markets/geographical coverage
                      Present effort
                      Recommended effort (objective based)
                      Coverage capacity

 A properly sized selling organization assures that customers and prospects receive appropriate coverage, company products get proper representation, the sales force is stretched but not overworked, and the company makes an appropriate investment in its sales resource.

Using liberalization policy and involving the private sector in a competitive environment for the development and expansion of telecommunication sector in Nepal, the then Government of Nepal 's (cabinet) decision dated 2052/9/10 B.S. (December 25, 1995 A.D.) has initiated the involvement of the private sector in the development of the telecommunication services. In Nepalese case of Nepal telecom is targeted to all age groups.  Nepal Telecom (NT) is planning to add 2.25 million subscribers in the current fiscal year. My suggestions are first of we know the lack of motivation of employees and I want to improve from expectancy and bonus system in individually if they did extra effort then get the bonus point for promotion and this policy is suitable for employee prospective. The customer target we know that vague mission and NTC policy is not so easily meet but if we take different policies like, scheme with different policies and divided the categoris student, businessman, housewife, tourist and many other. These is very easy to know the scheme and can get benefit with both(customer and company).

0 Comments