CSM CSM Territory Management & Planning 2 — Questions and Answers
Question 1: What is the goal of territory planning in sales management?
- To eliminate overlapping responsibilities between reps
- To create a structured approach for achieving revenue targets within defined areas (Correct answer)
- To reduce the number of accounts each rep manages
- To standardize pricing across all territories
Correct answer: To create a structured approach for achieving revenue targets within defined areas
Territory planning creates a structured framework for resource allocation and revenue achievement within defined areas.
Question 2: Which of the following is a key input when creating a territory plan?
- Rep preference for working from home
- Historical sales data and market potential analysis (Correct answer)
- Number of company office locations
- Product warranty duration
Correct answer: Historical sales data and market potential analysis
Historical sales data and market potential analysis provide the foundation for effective territory planning and goal setting.
Question 3: What does 'account tiering' help a sales manager accomplish?
- Rank employees by performance
- Categorize accounts by revenue potential to prioritize sales efforts (Correct answer)
- Separate domestic from international accounts
- Identify accounts that need customer service support
Correct answer: Categorize accounts by revenue potential to prioritize sales efforts
Account tiering categorizes customers by revenue potential, allowing reps to focus time on highest-value opportunities.
Question 4: In territory planning, a 'coverage model' refers to:
- The number of sales reps assigned per manager
- How sales resources are deployed to reach and serve accounts effectively (Correct answer)
- The percentage of quota achieved by each territory
- Insurance coverage for sales reps during travel
Correct answer: How sales resources are deployed to reach and serve accounts effectively
A coverage model defines how sales resources are strategically deployed to maximize account reach and service quality.
Question 5: Why is it important to review and adjust territories periodically?
- To give reps new accounts each quarter
- To respond to market changes, growth, and shifts in account distribution (Correct answer)
- To ensure all reps have the same number of accounts
- To comply with federal sales regulations
Correct answer: To respond to market changes, growth, and shifts in account distribution
Periodic territory reviews ensure alignment with evolving market conditions, company growth, and competitive dynamics.
Question 6: What is the risk of having overly large territories assigned to a single rep?
- Too many internal conflicts with other reps
- Reduced customer coverage and missed revenue opportunities (Correct answer)
- Excessive travel reimbursements
- Difficulty using CRM software
Correct answer: Reduced customer coverage and missed revenue opportunities
Overly large territories limit the rep's ability to provide adequate coverage, leading to missed opportunities and weaker customer relationships.
CSM CSM Territory Management & Planning 2
What is the goal of territory planning in sales management?