Case Study

408 WordsMar 13, 20132 Pages
1. MIG uses states as the geographic control unit. What are the advantages of using states? Disadvantages? To develop territories, especially in the early stages of territory development, many small firms use state boundaries. Also, companies which are seeking nationwide distribution for the first time use states as territory boundaries. State sales territories are simple, convenient, and inexpensive. Political units such as state, county and city are often used as geographic control units because census data and other market information for them are available. However, few companies use them because customers from one state often cross boundaries into another state to do their purchasing. Moreover, a state may simply be too large and diverse in market potential for management to control or evaluate salesperson performance. 2. What goal should Ashley Roberts have for determining territories in the new five-state markets? MIG has decided to expand operations into five states and Roberts has learned that sales potential is a function of the number of manufacturing employees. Therefore, Roberts’ goal should be enhance market coverage by building a more effective sales force, minimizing selling costs, and strengthening customer relations. By doing this, Roberts also better evaluates sales and coordinate selling with other marketing functions. Assigning sales people to specific geographic areas improves performance evaluation because salespeople can be evaluated on their performance compared with the territory’s potential. 3. How would you assign territories if you were Ashley Roberts? If I were Ashley Roberts, I would assign territories according to salespeople’s potential sales effectiveness within that territory. Because salespeople vary in physical condition as well as ability, initiative, and effectiveness, interaction of an individual salesperson with

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