Reasons for establishing territories

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Reasons                                                                                              Benefits

Customer related

1.         Provide intensive market coverage                – produce higher salary

2.         Provide excellent customer service               – produce greater satisfaction

Supervision related

3.         Foster enthusiasm and moral                         – leads to less turnover and high job satisfaction

4.         Facilitates performance evaluation                – offer reward related to efforts.

Managerial

5.         Enhance control and evaluation                     – reduce expense

6.         Coordinate promotion                                     – give more bang for buck

7.         Control selling expenses                                 – avoids promotional wastage

8.         Aids in coordinating of personnel selling and advertising

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