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Sales Territory Alignment: A Review and Model

Author

Listed:
  • Andris A. Zoltners

    (Northwestern University)

  • Prabhakant Sinha

    (Rutgers University)

Abstract

The sales territory alignment problem may be viewed as the problem of grouping small geographic sales coverage units into larger geographic clusters called sales territories in a way that the sales territories are acceptable according to managerially relevant alignment criteria. This paper first reviews sales territory alignment models which have appeared in the marketing literature. A framework for sales territory alignment and several properties of a good sales territory alignment are developed in the course of the review. A general sales territory alignment model which accommodates these properties is developed. A solution procedure for the general model is presented. Finally, an actual implementation of the general model is described. The implementation provides a comparison of the general model with a similar model which has been frequently cited in the marketing literature.

Suggested Citation

  • Andris A. Zoltners & Prabhakant Sinha, 1983. "Sales Territory Alignment: A Review and Model," Management Science, INFORMS, vol. 29(11), pages 1237-1256, November.
  • Handle: RePEc:inm:ormnsc:v:29:y:1983:i:11:p:1237-1256
    DOI: 10.1287/mnsc.29.11.1237
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