Question

The chapter describes the process to follow to develop territories. After territories have been developed, changes may occur that indicate the territories need to be realigned. What changes can you identify that indicate the need for realignment? How would you go about the process of realigning territories? How would you implement the changes?

Answer 1

Q1) The changes that indicate the need for realignment of territories include -

1. Increased costs of customer acquisition due to geographically distant regions in the current territories.

2. Customer mix based on demographic and psychographic features that needs a realignment of territories

3. Inefficiencies of sales force due to higher workload in specific territories and lower workload in others.

4. Extension of product lines with the introduction of new products or innovations.

Q2) Below is the process of realigning territories and implementation of the changes -

1..Identifying all the needs and objectives to realign territories.

2. Communicating the territory realignment with the salesforce in the specific territories.

3. Creating a compensation structure or new pay structure if required, to motivate the salesforce to assist in the eralignment process while compensating for any loss to them due to the same.

4. Collecting all the data of the current territories and the corresponding sales across demographies and geographies etc. to create a new structure where the salesforce is aligned based on more optimized structure.