Question

How do territorial sales organisations solve their problems ?

Hint:

A territorial set-up gives each salesperson a fixed area. List what this fixes, such as overlap, cost and control.

Answer 1

Step 1: Meaning of a territorial sales organisation:
In this set-up the firm divides the market into areas called territories. One salesperson or one team looks after each territory and sells all the products of the firm there.

Step 2: Problems it solves:
1. No overlap. Only one salesperson serves a customer, so two salespersons do not call on the same buyer.
2. Lower travel cost. A salesperson moves within a small area, so time and money are saved.
3. Clear responsibility. The manager knows who is answerable for the sales and the weak spots of each territory.
4. Better customer contact. The salesperson learns local tastes and builds long-term relations with dealers.

Step 3: Result:
The whole market gets covered, selling cost falls and the firm can control and judge each salesperson easily.

Final Answer:
Territorial organisation removes overlap, cuts cost, fixes responsibility and improves customer service.