Which of the following statements about sales territories is true?
A)A sales territory typically contains homogeneous customers of the same size and buying habits.
B)By definition, sales territories have geographic boundaries.
C)Sales territories are intended to insure thorough coverage of the market.
D)A sales territory typically contains the potential for an organization to breakeven.
E)Sales territories are used to increase sales expense.

Question

Quizplus · Accepted Answer

Sales territories are created to ensure thorough coverage of the market, so that no customer is overlooked or ignored. Sales territories can be defined by geography, but they can also be defined by other criteria such as customer type or industry. Homogeneous customers are not always necessary for a sales territory, as it is more important to have a well-rounded coverage of the market. The potential for breakeven is not a defining characteristic of a sales territory, and sales territories are not used to increase sales expense.

Which of the Following Statements About Sales Territories Is True