Deck 15: Territory Design

Question 1

The last step in the sales territory alignment process is to finalize sales territories.

Answer 1

False

Question 2

Major realignment of sales territories (e.g., all or most territories boundaries are changed) are likely to occur each year.

Answer 2

False

Question 3

A common quantitative factor on which to design sales territories are the number of present customers in a geographical region.

Answer 3

True

Question 4

Minor realignments of sales territories are likely to occur each year.

Question 5

In one form or another all companies use sales territories, so it is important to understand how territories should be designed.

Question 6

Combining control units is a fundamental part of the build-up method of territory design.

Question 7

The number of current customers per territory is an important design factor because sales managers are interested in new business growth.

Question 8

The workload approach to the design of sales territories can be thought of as a six-part decision process, starting with decisions on allocation criteria, and selection of starting points.

Question 9

Countries are sometimes used as control units.

Question 10

The most popular approach to designing sales territories is known as the buildup method.

Question 11

Sales territories can be instrumental in helping to reduce marketing costs.

Question 12

The control or evaluation of salespeople's performance is usually not affected by the establishment of sales territories.

Question 13

For purposes of balancing territory sales potential, the number of existing customers in a territory is often used as a measure of sales potential.

Question 14

Current dollar sales in an area is the best criterion to use in building sales territories.

Question 15

Well-designed sales territories can reduce a sales department's overall travel expenses.

Question 16

The first step in the territory design process is to select the best salesperson for a territory.

Question 17

Sales territories are geographic areas assigned to individual salespeople in such a way as to maximize the salesperson's earnings potential.

Question 18

All companies use sales territories.

Question 19

When designing territories, a firm should first select control unites.

Question 20

The workload approach to territory design is usually more suitable in situations where salespeople are on salary.

Question 21

Computer programs are increasingly being used to design sales territories.

Question 22

Rivers, lakes and mountains must sometimes be considered when designing sales territories.

Question 23

The Ringer Company, a manufacturer of decorator doorbells, has hired you as their new sales manager. Management has decided to change from their current open sales organization to one using sales territories. It's up to you to design these territories. In which order will you complete the following steps?
1) Select geographic control unit.
2) Decide on allocation criteria.
3) Choose starting points.
4) Combine adjacent control units.
5) Compare territories on allocation criteria.

A) 2, 5, 4, 1, 3
B) 4, 5, 2, 3, 1
C) 2, 4, 5, 3, 1
D) 4, 2, 5, 1, 3
E) none of the above

Question 24

When sales potential is not explicitly considered in designing sales territories:

A) travel expenses may become excessive.
B) salespeople may have less time to close sales.
C) some salespeople's earnings may be very limited.
D) both a and b are correct.
E) none of the above are correct.

Question 25

Which of the following is the most finite geographic control unit used in sales territory alingment:

A) countries.
B) zip codes.
C) census tracts.
D) individual customers.
E) none of the above.

Question 26

Population is never used as a key input data for designing sales territories.

Question 27

There are a number of benefits to using sales territories. The primary benefit is improved market coverage. Which of the following is/are among the other benefits?

A) increased sales.
B) reduced sales force turnover.
C) higher sales force moral.
D) a and c of the above.
E) all of the above.

Question 28

Designing sales territories with equal sales potential is very common among business firms.

Question 29

Balancing territories becomes increasingly more difficult as you add more allocation factors.

Question 30

Major issues to be resolved when designing sales territories include all of the following except:

A) selecting allocation criteria.
B) choosing a starting point.
C) design territories using computer programs.
D) estimating territorial "aggregate output supply."
E) assigning people to specific territories.

Question 31

An effort should usually be made to equalize territories on size, sales potential, and workload.

Question 32

When using a computer to design territories, you don't have to worry about deciding on allocation criteria.

Question 33

A group of current and prospective customers located in a geographical area that is assigned to an individual salesperson can best be defined as:

A) sales niche.
B) a sales territory.
C) a market share.
D) customer cluster.
E) a and d only.

Question 34

Steps in territory design include all of the following except:

A) selecting the geographic control unit.
B) deciding on allocation criteria.
C) combining adjacent control units.
D) choosing the boundary points and the finish point.
E) comparing territories on allocation criteria.

Question 35

Many large firms with numerous sales territories use computer programs in the redesign of territories to make them more compact and similar in potential.

Question 36

The primary benefit from using sales territories is:

A) a greater number of salespeople can be hired.
B) salespeople have reduced responsibilities.
C) Increased sales.
D) b and c of the above.
E) none of the above.

Question 37

Before deciding on an allocation criteria, you should:

A) choose starting points.
B) combine control units adjacent to starting points.
C) select geographic control units.
D) both a and b are correct.
E) none of the above are correct.

Question 38

Firms that divide up cities into several sales territories may be using which of the following control units:

A) customers.
B) zip codes.
C) census tracts.
D) Only a and b are correct
E) a, b, and c are all correct.

Question 39

A common control unit used when a firm is covering the U.S. with a few salespeople is:

A) small cities.
B) large cities.
C) counties.
D) states.
E) none of the above.

Question 40

It is important to get salesperson input before beginning a major sales territory realignment.

Question 41

Assume that you are the new sales manager of IncPot; a school supply manufacturer. IncPot is in the midst of a regional rollout, and it's your responsibility to select a geographic location to serve as an organizing point for a new territory. Which of the following would be your most likely choice?

A) the salesperson's present home.
B) a large city.
C) the location of IncPot's largest customer in the area.
D) all of the above are possibilities.
E) b and c of the above.

Question 42

Balancing territories on geographic size:

A) can reduce travel expenses.
B) provides a minimum income for those paid on commission.
C) cannot be done using a computer.
D) ensures "equality of opportunity" for all salespeople.
E) all of the above are correct.

Question 43

Which of the following sites are common choices for starting points?

A) small towns
B) homes of salespeople
C) mountains and rivers
D) both a and b are correct
E) all of the above are correct

Question 44

The "equal opportunity" principle in designing sales territories is that:

A) territories should be assigned regardless of race, religion, age, or sex.
B) creating territories of equal sales potential.
C) having equal compensation among salespeople.
D) a and b only.
E) all of the above.

Question 45

The most common quantitative factor(s) used to design sales territories is/are:

A) some measure of potential.
B) number of present customers.
C) hotel and travel expenses.
D) a and b of the above.
E) all of the above.

Question 46

All of the following are basic control unit allocation factors that are commonly used to design territories except:

A) salesperson's experience.
B) the number of current customers.
C) sales potential.
D) geographic size.
E) all of the above are basic allocation factors.

Question 47

Which of the following are possible criteria used to make territory allocations:

A) current customer base.
B) the Buying Power Index.
C) number of prospects.
D) a and c only.
E) all of the above.