Sales territory

A sales territory is the customer group or geographical area for which an individual salesperson or a sales team holds responsibility. Territories can be defined on the basis of geography, sales potential, history, or a combination of factors. Companies strive to balance their territories because this can reduce costs and increase sales. Sales territory can be varied by salesperson or sales team depending on the product they sell or the company that they work for, with companies needing to account for their products price, frequency of sales, and costs in order to determine sales territory to sell their product in.