The geographical area based sales territory maps salespersons or sales teams to a country, state, city or a specific geographic area. A customer group based sales territory maps salespersons or sales teams to customer groups like retail, wholesale, commercial or government entities. Industry segment based sales territory maps salespersons to specific industry segments like telecom, oil and gas, manufacturing etc. In large enterprises a combination of these criteria can be used to define sales territory.

We can assign a sales target to every territory for a year and appoint a sales manager to oversee the fulfilment of this target and periodically review the actual sales made for each region/territory. We need to consider both the territory conditions and the salesperson capabilities while assigning salespersons to a territory.

It is important to thinkfully design sales territories considering various factors and map salespersons so that each territory is neither underserviced or overserviced. Sales territories need to be redefined in response to changing business conditions.