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Sales Territory Design: An Integrated Approach

Author

Listed:
  • Roy J. Shanker

    (Institute of Defense Analyses)

  • Ronald E. Turner

    (Queen's University)

  • Andris A. Zoltners

    (University of Massachusetts)

Abstract

A sales territory design procedure should solve the dual problems of boundary definition and call frequency. Furthermore, it should be possible to base the design on several workload and potential criteria. A procedure is presented which meets this specification. It employs recent developments in set-partitioning and includes a computer code which makes it possible to handle design problems of realistic proportions. The outcome of the design procedure, termed the market matrix, is a schedule which specifies which salesman calls on each customer, and the sales call frequencies which maximize the total sales from all territories. A case example illustrates how the procedure is applied.

Suggested Citation

  • Roy J. Shanker & Ronald E. Turner & Andris A. Zoltners, 1975. "Sales Territory Design: An Integrated Approach," Management Science, INFORMS, vol. 22(3), pages 309-320, November.
    • Handle: RePEc:inm:ormnsc:v:22:y:1975:i:3:p:309-320
    DOI: 10.1287/mnsc.22.3.309
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    Citations

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    Cited by:

    1. Bernd Skiera & Sönke Albers, 1998. "COSTA: Contribution Optimizing Sales Territory Alignment," Marketing Science, INFORMS, vol. 17(3), pages 196-213.
    2. 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.
    3. Jörg Kalcsics & Stefan Nickel & Michael Schröder, 2005. "Towards a unified territorial design approach — Applications, algorithms and GIS integration," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 13(1), pages 1-56, June.
    4. Brian Lunday & Hanif Sherali & Kevin Lunday, 2012. "The coastal seaspace patrol sector design and allocation problem," Computational Management Science, Springer, vol. 9(4), pages 483-514, November.
    5. 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.
    6. 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.
    7. Maria da Conceição Rego & Rui Fragoso & Vladimir Bushenkov, 2014. "Clustering of Territorial Areas: A Multi-Criteria Districting Problem," ERSA conference papers ersa14p218, European Regional Science Association.
    8. Johannes Habel & Sascha Alavi & Nicolas Heinitz, 2023. "A theory of predictive sales analytics adoption," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 34-54, June.
    9. Meiyan Lin & Kwai Sang Chin & Lijun Ma & Kwok Leung Tsui, 2020. "A comprehensive multi-objective mixed integer nonlinear programming model for an integrated elderly care service districting problem," Annals of Operations Research, Springer, vol. 291(1), pages 499-529, August.
    10. 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.
    11. Andreas Drexl & Knut Haase, 1999. "Fast Approximation Methods for Sales Force Deployment," Management Science, INFORMS, vol. 45(10), pages 1307-1323, October.
    12. Fernando Tavares-Pereira & José Figueira & Vincent Mousseau & Bernard Roy, 2007. "Multiple criteria districting problems," Annals of Operations Research, Springer, vol. 154(1), pages 69-92, October.
    13. 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.

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