89. In designing sales territories, a sales manager considers several major factors. The territories must be constructed so
that sales potential can be measured; the shape of the territories should facilitate salespeople’s activities to provide the best
possible coverage of customers; and
territories should be designed to minimize selling costs.
all territories should be of similar size.
the territorial pattern should consist of concentric circles.
the density of potential customers should be minimized.
the distribution of customers should be relatively equal.
MARK.PRID.16.18.05 – LO: 18–05
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Sales Force Management
90. If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic
size; this will cause the salespeople with larger territories to
develop larger income potentials.
have to work longer and harder to generate a certain sales volume.
work about the same amount, since potential is the same.
have much larger sales than those salespeople with smaller territories.
be limited to a smaller income potential.
MARK.PRID.16.18.05 – LO: 18–05
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Sales Force Management
91. Customer density and distribution are important factors in
creating sales territories.
compensating salespeople.
establishing sales force objectives.
Moderate
MARK.PRID.16.18.05 – LO: 18–05
United States – BUSPROG: Analytic
United States – AK – DISC: Promotion
A-Head: Sales Force Management
Bloom’s: Knowledge