1609

Problem

To make effective and efficient sales force allocation decisions, the sales manager must analyze sales territories. Describe how the sales manager can profit by examining: (a) the potential, (b) the concentration, and (c) the dispersion of territories.

Step-by-step solution

Show all steps

Step 1/3

One of the ways to improve sales and motivate sales employees is by efficiently allocating territory to the employees, where the company wants to sell its product.

The sales manager gets all the information about the territory that is required to be allocated. The information like potential at a particular territory, concentration of the resources and the geographical location of the territory is determined.

Step 2/3

A sales manager can allocate the territories based on the three criteria of potential, concentration and the geographical location. The decisions based on these parameters results in better allocation of the strategy.

The potential

Sales manager can allocate the territory according to the potential of sale in a particular territory. In such territory generally sale is higher so manager can reduce the number of sale force.

Step 3/3

Concentration

Another way to allocate territory is on basis of concentration of product. In such territory generally the numbers of prospects are concentrated in a particular area. A sales person can cover large number of area by making a few calls.

Dispersion

Allocation on the basis of geographical location can also be done. In the potential areas that are dispersed over large geographical area the sales are generally lower because of time wasted in covering large amount of area.