Explain the term sales territories. Discuss the steps involved in territory planning and its importance.

Sales territories refer to the specific geographic areas or market segments assigned to individual salespeople or sales teams within an organization. These territories help in organizing the sales force efficiently by dividing the market into manageable sections, allowing sales representatives to focus on a particular region or customer group. The primary goal of defining sales territories is to maximize sales coverage, improve customer service, reduce travel time and expenses, and avoid conflicts among salespeople competing for the same customers.

Territory planning is a systematic process by which companies allocate sales resources and assign territories to their salespeople. This process involves several steps that ensure balanced workload distribution, optimum market coverage, and increased sales performance. The steps involved in territory planning include:

1. Setting Objectives: The first step in territory planning is to clearly define the objectives the company wants to achieve through the sales territories. Objectives can include increasing sales volume, improving customer service, ____ __________ ______ ____ _____.
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