sales territory

Segment of the market for which a salesperson is responsible. Territory assignments may be exclusive, meaning no other salesperson can sell in that territory, or nonexclusive. Territories may be defined in terms of geographic or market segments, product or product lines, size of customer or by specific customers or prospects. The best territories with the greatest revenue potential are usually assigned to the best salespeople. The individual talents or characteristics of the salespeople can also be used to determine territory assignments. It takes a different skill set to make sales to large corporations than to small retailers. Geographic territory assignments should be made so as to minimize the travel expenses incurred by any one salesperson. When creating geographic territories, the density of the prospect base will determine the size of the territory. For example, New York City alone may offer as many prospects as several Northwestern states combined. See also house account; sales force.