What is a 'sales territory' defined as?

A sales territory is defined as a designated area or group of customers that is specifically assigned to a sales representative for targeting. This concept is crucial in sales management as it helps streamline the efforts of sales representatives by allowing them to focus on a specific geographic region or customer segment. By having assigned territories, companies can ensure better customer coverage, efficient use of resources, and the potential for increased sales revenue, since representatives can develop stronger relationships with their clients.

Sales territories also help in performance measurement and management. They provide a clear framework for evaluating sales efforts, as well as opportunities for sales reps to specialize in the needs and characteristics of their assigned accounts or areas. This focused approach can lead to more effective sales strategies and enhanced customer satisfaction.