A sales force is best within an organization if it is allowed to continually grow and change to meet the needs of the marketplace. The way a sales force is structured should be carefully analyzed to determine if the current organization fits the ongoing needs of customers and also to ensure that the structure is most cost effective for the company. The flatter the organization of the sales force, the more flexible and responsive it can be. This avoids any hindrance on the sales force and ensures effective implementation of the sales process.
Since there is only one "specialty" that the Baderman Island sales force is involved in (travel services to the island), organizing the sales force by geographic specialization (instead of organizing by line or specialty) is the best option. This allows dividing responsibility and Region authority over sales operations. In this type of geographic organization, each salesperson is assigned a separate geographical area, called a territory, to sell within.
The sales executive over the salespeople is called a Domestic or International Sales Manager.
The main consideration in the design of sales territories is ensuring the sales representation, either in-house or independent, has the best opportunity to reach as many potential customers within the territory as possible. Based on the number of existing customers and prospects in each area, territories were analyzed to determine undeserved or saturated areas, and how easily they can be reached by salespeople. The criteria to determine the number of territories needed was based on travel time, location of distributors, distribution of leads, number of salespeople, and workload.
The territories were designed to reduce the amount of windshield time from sales call to sales call, which allows more time to actually meet with customers. Efficient territory design results in less travel time...