. (a) What are the various approaches involved in territory design? Elaborate.
(b) When and why field sales organisation are developed? Discuss with an example and jutify the need for establishing a sales organisation.
A. Various Approaches Involved in Territory Design:
Territory design is a crucial aspect of sales management, as it directly impacts the efficiency and effectiveness of the sales force. There are several approaches involved in territory design, each tailored to meet specific organizational goals and market dynamics:
1. Geographical Approach:
- This involves dividing territories based on geographical boundaries such as states, regions, or countries.
- Suitable for businesses with diverse customer needs that vary significantly across different locations.
- Helps in managing logistics and ensuring that sales representatives have a deep understanding of the local market.
2. Customer Segmentation Approach:
- Territories are designed based on the characteristics and needs of customer segments.
- Effective for companies with diverse products or _______ ______ ___ ________ _____ _____ _________ __________ _____ ____.
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