Professional Documents
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Territory Design
Computer Based Territory Designs
Computers save time
Need location & number of customers & starting
points
Program options
minimize moment of inertia
Graph data & draw boundaries -- not optimal
design optimal territories -- expensive
Territory Design
In-Class Exercises 11-1
1. Why do companies redesign territories?
2. In this role play, what were the reasons
for redesigning territories?
3. What problems are likely to arise when
territories are redesigned?
4. Which salespeople are most likely to be
resistant to change?
Territory Design
In-Class Exercises 11-1
5. What mistakes were made in territory
realignment?
6. What options are available?
7. Should the company give in to Hughes and not
change his territory?
8. What if seven other people in the district come
to you asking for the same deal as Hughes?
What do you tell them?
Territory Design
Territory Design Procedures
3. Determine Allocation Criteria
1
Select geographic
control units
2
Decide on
allocation criteria
3
Choose
starting points
4
Combine control units
adjacent to starting points
5
Compare territories on
allocation criteria
6
Assign salespeople to
new territories
Revise territory
boundadries to
balance workload
and potential
OHIO
INDIANA
WEST
VIRGINIA
ILLINOIS
VIRGINIA
TENNESSEE
Three Kentucky Sales Territories
OHIO
INDIANA
WEST
VIRGINIA
ILLINOIS
VIRGINIA
TENNESSEE
Three Kentucky Sales Territories
Cities
Zip codes
Census tracts
Customers
Table 11-2
Territory
Potential as
Measured by
Population
Number of Counties
1
2
3
1,124,897
1,129,290
1,131,137
47
27
43
Package
Description
Price
GeoQuery Corp.
GeoQuery
$295
TTG,Inc.
STARmanager
$995
Sammamish
Data Systems
GeoSight
Professional
$1,850
Metron, Inc.
Territory Design
Territory Design Procedures
Talleys Workload Approach
No starting points
Equates work to be done
May lead to imbalance on size (11-4)
Often raises travel costs
Good when reps are on salary
Key: optimal call frequency for particular
classes of customers