Territory Planning

Territory planning is  a variation of the structured planning methodology that is intended for use by sales managers to produce territory plans for the general business territories (often with their reseller partners) in a cost and time effective way. The process is done in five phases.

Phase I: Preplanning
Preplanning by the participants includes data gathering and arranging for the logistics required to run the territory planning session. The activities to be coordinated by the sales manager include:

1. Conduct an orientation meeting for the participants
2. Preparation for the territory planning session

Phase II: The Territory Planning Session
The typical territory planning sessions addresses four or five sales representatives and their territories in a parallel track process. This planning process takes advantage of the knowledge of other personnel in the sales unit, along with that of the various resources that the sales unit will call upon to support the territory plans.

Phase III: Documentation
Having collected all the resource requirements for each territory, the sales manager should consolidate them into a unit resource requirements list, which can be used to set resource priorities and obtain commitments from appropriate management.

Phase IV: Customer Validation
It is strongly recommended that each sales representative validate appropriate portions of the territory plan with each respective customer. This validation will ensure that the plan is addressing the customer's issues and is, in essence, a qualification of the customer's willingness to buy.

Phase V: Implementation and Update
A territory plan, however well thought out, is subject to change. These changes are especially acute in the more detailed tactics of the plan. The sales manager must conduct a periodic formal review of the territory plans to ensure their continued implementation and validity. Senior sales management should conduct annual territory reviews as well.