Mig Case Study. Developing Territories

778 Words4 Pages
Case 7.1 Manufacturers Insurance Group: Developing Territories 1. MIG uses the states as the geographic control unit. What are the advantages of using states? Disadvantages? A basic advantage for MIG using states as a geographic control unit is that they are easily identifiable. Now looking beyond this simple, obvious aspect, MIG’s approach at using states as their geographic control unit has more benefits. Since MIG’s sales force focuses its efforts on selling their insurance policies to manufacturing facilities, they’re never presented with the issue of their customer’s leaving the geographic area. Another added benefit is that MIG’s sales manager can easily access data about their target customers within the control unit which allows them to focus their efforts on those specific manufacturing facilities. Information like the number of manufacturing facilities and the number of employees at each facility as well as facility locations, their positioning within the geographic area and concentration is readily available in public databases to acquire. This type of data allows sales managers to determine if multiple territories are required within the control unit or if it can be supported by a single salesperson. A major disadvantage to MIG in using this method is that there can be much fluctuation within such large control units. In MIG’s case the 5 states that they are planning on expanding to have noticeable variance in the number of manufacturing facility employees. The significance of these fluctuations impacts the balance of the territories, making some more lucrative than others which will generally lead to disapproval and complaints to management from the disadvantaged salespersons. Furthermore the disadvantage extends in that the control units with the higher number of employees will require much more effort to turn potential customers
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