Question 1

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

Accepted Answer

The last step in the sales territory alignment process is typically to review and adjust the territories based on performance and changing market conditions, not just to finalize them. Continuous monitoring and adjustment are key to maintaining effective sales territory alignment.

Question 2

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

Accepted Answer

Major realignment of sales territories is a significant and time-consuming process. It involves careful analysis and consideration of various factors such as sales data, market trends, and customer behavior. Therefore, it is unlikely that such a major change would occur every year. Companies typically review and adjust their sales territories every few years or when significant changes or events occur, such as mergers and acquisitions or entering new markets.

Question 3

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

Accepted Answer

The number of present customers in a geographical region is a common quantitative factor used to design sales territories.

Question 4

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

Accepted Answer

Minor realignments of sales territories are common to adjust for changes in customer demographics, sales volume, or other factors.

Question 5

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

Accepted Answer

Not all companies use sales territories; some may have different sales strategies that do not involve dividing markets into territories.

Question 6

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

Accepted Answer

Combining control units is indeed a fundamental part of the build-up method of territory design. This is done in order to create larger and more meaningful territories that are easier to manage and analyze.

Question 7

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

Accepted Answer

The answer of The number of current customers per territory...

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.

Accepted Answer

The answer of The workload approach to the design of...

Question 9

Countries are sometimes used as control units.

Accepted Answer

Countries are often used as control units in research studies to compare outcomes across different regions or to account for cultural or economic differences.

Question 10

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

Accepted Answer

The buildup method is indeed the most popular approach to designing sales territories. This method involves starting with a larger area and then breaking it down into smaller territories based on factors such as customer density, sales potential, and geography.

Question 11

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

Accepted Answer

Sales territories help to target specific geographical areas and customer segments, which can lead to more efficient marketing strategies and reduced costs compared to a broader, less targeted approach.

Question 12

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

Accepted Answer

The establishment of sales territories can have an impact on the evaluation and control of salespeople's performance as it helps in measuring their efforts and results within a defined geographical area. This allows for more accurate tracking of sales targets and identifying areas for improvement.

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.

Accepted Answer

The answer of For purposes of balancing territory sales potential,...

Question 14

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

Accepted Answer

Current dollar sales alone may not provide a complete picture of market potential or customer potential. Other factors such as population demographics, competition, and purchasing trends should also be considered in building sales territories.

Question 15

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

Accepted Answer

When sales territories are well-designed, it ensures that sales representatives are assigned to specific regions or areas, which reduces the overall travel expenses. Sales representatives will spend less time and money traveling to different areas, and focus more on covering their assigned territories.

Question 16

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

Accepted Answer

The first step in the territory design process is to analyze the potential customer base and determine the best way to allocate salespeople, based on factors such as geography, customer characteristics, and sales goals. Selecting a salesperson for a territory comes later in the process.

Question 17

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

Accepted Answer

The answer of Sales territories are geographic areas assigned to...

Question 18

All companies use sales territories.

Accepted Answer

Not all companies use sales territories; the use of sales territories depends on the company's sales strategy, size, and the nature of its products or services. Some companies may opt for a more flexible approach or target their market differently.

Question 19

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

Accepted Answer

Before designing territories, a firm should select control units. Control units are geographical or administrative units used by a company to allocate resources and measure performance. These units may be based on factors such as sales, customer demographics, or geography. Once the control units have been identified, the firm can then allocate territories based on the characteristics of each unit.

Question 20

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

Accepted Answer

The workload approach to territory design is based on the workload required to cover a certain geographic area, rather than the potential sales or profitability of that area. This approach is more suitable for situations where salespeople are on salary as it ensures they are assigned territories of equal workload, rather than territories with potentially varying sales or profit levels.

Quiz 15: Territory Design