In which of the following situations is it best for the company to have a formal sales territorial structure?
A)The company is expanding into a new geographical area.
B)A small company with three salespeople plans to sell in a local market.
C)A medium-sized manufacturer of gardening tools is selling to garden nurseries throughout five Midwestern states.
D)A market situation where personal friendships are extremely important in making a sale.
E)None of these should have sales territories.

Question

Quizplus · Accepted Answer

A formal sales territorial structure is best suited for a medium-sized manufacturer of gardening tools that is selling to garden nurseries throughout five Midwestern states. It helps in effective management of sales, assigning specific responsibilities to the sales reps, and avoids overlapping of sales efforts. In the case of a small company with three salespeople planning to sell in a local market, the sales team can work collaboratively without needing defined territories. Personal friendships may be important for making a sale, but formal sales territories would not be favorable in such a scenario.

In Which of the Following Situations Is It Best for the Company