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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
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    File URL: http://dx.doi.org/10.1287/mnsc.29.11.1237
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    Citations

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    Cited by:

    1. Muyldermans, L. & Cattrysse, D. & Van Oudheusden, D. & Lotan, T., 2002. "Districting for salt spreading operations," European Journal of Operational Research, Elsevier, vol. 139(3), pages 521-532, June.
    2. Sprecher, Arno, 1999. "Sales force deployment by genetic concepts," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 514, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    3. Önal, Hayri & Wang, Yicheng & Dissanayake, Sahan T.M. & Westervelt, James D., 2016. "Optimal design of compact and functionally contiguous conservation management areas," European Journal of Operational Research, Elsevier, vol. 251(3), pages 957-968.
    4. Rui Fragoso & Conceição Rego & Vladimir Bushenkov, 2016. "Clustering of Territorial Areas: A Multi-Criteria Districting Problem," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 14(2), pages 179-198, December.
    5. Bernd Skiera & Sönke Albers, 1998. "COSTA: Contribution Optimizing Sales Territory Alignment," Marketing Science, INFORMS, pages 196-213.
    6. Ríos-Mercado, Roger Z. & López-Pérez, J. Fabián, 2013. "Commercial territory design planning with realignment and disjoint assignment requirements," Omega, Elsevier, vol. 41(3), pages 525-535.
    7. Darmon, Rene Y., 2002. "Salespeople's management of customer information: Impact on optimal territory and sales force sizes," European Journal of Operational Research, Elsevier, vol. 137(1), pages 162-176, February.
    8. Fabio Caldieraro & Anne T. Coughlan, 2009. "Optimal Sales Force Diversification and Group Incentive Payments," Marketing Science, INFORMS, vol. 28(6), pages 1009-1026, 11-12.
    9. Haase, Knut, 1999. "Sales force deployment by mathematical programming," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 508, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    10. Skiera, Bernd & Albers, Sönke, 1993. "COSTA: ein Entscheidungs-Unterstützungs-System zur deckungsbeitragsmaximalen Einteilung von Verkaufsgebieten," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 324, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    11. Mourão, Maria Cândida & Nunes, Ana Catarina & Prins, Christian, 2009. "Heuristic methods for the sectoring arc routing problem," European Journal of Operational Research, Elsevier, vol. 196(3), pages 856-868, August.
    12. repec:pal:jorsoc:v:55:y:2004:i:8:d:10.1057_palgrave.jors.2601729 is not listed on IDEAS
    13. Andris A. Zoltners & Prabhakant Sinha, 2005. "The 2004 ISMS Practice Prize Winner—Sales Territory Design: Thirty Years of Modeling and Implementation," Marketing Science, INFORMS, vol. 24(3), pages 313-331, September.
    14. Andreas Drexl & Knut Haase, 1999. "Fast Approximation Methods for Sales Force Deployment," Management Science, INFORMS, vol. 45(10), pages 1307-1323, October.
    15. Haase, Knut & Müller, Sven, 2014. "Upper and lower bounds for the sales force deployment problem with explicit contiguity constraints," European Journal of Operational Research, Elsevier, vol. 237(2), pages 677-689.
    16. Drexl, Andreas & Haase, Knut, 1996. "Fast approximation methods for sales force deployment," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 411, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    17. Tavares Pereira, Fernando & Figueira, José Rui & Mousseau, Vincent & Roy, Bernard, 2009. "Comparing two territory partitions in districting problems: Indices and practical issues," Socio-Economic Planning Sciences, Elsevier, vol. 43(1), pages 72-88, March.
    18. Teixeira, Joao C. & Antunes, Antonio P., 2008. "A hierarchical location model for public facility planning," European Journal of Operational Research, Elsevier, vol. 185(1), pages 92-104, February.

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