Designing the sales territories is an important problem especially for Ethnic Populations. A seller analyses sale history and relationship to targeted ethnics populations provided the basis for the new territories. An employer admits that it usually assigns for example Black and Asian American salespersons to sales territories with a high percentage of Blacks and Asian Americans. It is uncontested that the employer does not harbor ill-will toward either group.
Instead, the employer believes they will better serve sales territories with high percentages of Blacks and Asian Americans, and thus increase sales to the benefit of the firm’s bottom line and their careers. Charges are filed by employees who want the opportunity to work in territories regardless of their racial makeup. The employer has violated Title VII, which prohibits employers from depriving employees of employment opportunities by limiting, segregating, or classifying them on the basis of race
Sales performance also may be influenced by differences in local customs religion, and ethnic background. Once the sales territories are designed, individual sales person can be assigned to each territory. Sales person differ in their selling abilities and selling effectiveness. They also vary in age, physical conditions, experience, selling skills, initiative, etc. A particular sales representative may succeed in one territory but fail in another territory (Spiro p396).
For example, In Chicago, a firm may establish separate territories in some parts of the city to cater to the African, Hispanic, Italian, Polish, Jewish, or Vietnamese markets. The person covering each of these districts is from the corresponding ethnic group and often can speak the group’s language (Spiro p396). Also influence sales effectiveness. While assigning sales people to territories, it is necessary to match the characteristics of each salesperson to the nature and the requirements of the territory assigned to him/her.
The ideal would be to assign each salesperson to the territory where his or her relative contribution to the company’s profits would be higher. Finally, It is better to assign the right salesperson to the right territories, which will help you achieve a number of measurable and sustainable benefits as a better customer coverage and customer service leading to increased productivity and increased sales.