Creating Sales Territories: Sales territory design and balancing

Introduction

Two years ago, Janice Brown and Steven Bent started three Living in the Green Lane stores in the Minneapolis-St. Paul area. Their concept, a home center for environmentally concerned consumers, has been very successful. Their core customers have been "green" consumers who are motivated either by environmental concerns or the economic savings available from green technologies (Schaefer 2007). These consumers tend to have higher levels of income, education and home value than the general population of the United States (Kannan 2007).

To expand services and increase revenue, Janice and Steven have added organic lawn and garden services, as well as organic pest control services, in their product line. They plan to use a personal sales force of six sales representatives to offer these services to homeowners.

They wish to organize this sales force into a territory system with two territories assigned to each of the three stores. They have charged you, in your role as the firm's business geographic information system (GIS) analyst, to design this system of six territories with approximately the same level of sales potential in each.

Your task in this SpatiaLAB is to design that territory structure.

Location

Minneapolis-St. Paul core-based statistical area

Time to complete the lab

Four to six hours

Prerequisites

An understanding of the importance of sales territory design and balancing in the sales management process

Access to Esri Business Analyst Desktop Premium 10

Data used in this lab

Demographic and consumer spending data at the ZIP Code level