CSE CSE Territory Management & Account Planning 1 — Questions and Answers
Question 1: What is the PRIMARY goal of sales territory design?
- Minimizing the number of sales representatives needed
- Ensuring balanced workload and revenue opportunity across all sales reps (Correct answer)
- Reducing travel expenses for the sales team
- Aligning territories with marketing campaign regions
Correct answer: Ensuring balanced workload and revenue opportunity across all sales reps
Effective territory design distributes accounts and prospects equitably so each rep has a comparable opportunity to achieve quota without being over- or under-loaded.
Question 2: Which factor is MOST important when segmenting accounts for territory planning?
- Account age in the CRM system
- Account revenue potential and strategic fit (Correct answer)
- Alphabetical order of company names
- Number of employees in the sales region
Correct answer: Account revenue potential and strategic fit
Segmenting by revenue potential and strategic fit ensures that high-value accounts receive appropriate coverage and that territory assignments maximize return on sales effort.
Question 3: What is a whitespace analysis in account planning?
- A review of a company's website design
- Identifying untapped revenue opportunities within existing accounts or markets (Correct answer)
- Analyzing the margins on current product offerings
- Mapping competitor presence in a sales territory
Correct answer: Identifying untapped revenue opportunities within existing accounts or markets
Whitespace analysis identifies unaddressed needs, divisions, or product gaps within existing accounts or markets that represent new revenue growth opportunities.
Question 4: A tiered account model (e.g., Tier 1, Tier 2, Tier 3) in territory management is used to:
- Rank accounts by how long they have been customers
- Prioritize sales effort and resource allocation based on account value and potential (Correct answer)
- Determine which accounts should be transferred to channel partners
- Schedule customer visits in geographic order
Correct answer: Prioritize sales effort and resource allocation based on account value and potential
Tiering accounts by current revenue and growth potential allows sales teams to allocate more time and resources to high-value accounts while managing lower-tier accounts more efficiently.
Question 5: Which metric is BEST used to evaluate the productivity of a sales territory?
- Number of customer complaints in the territory
- Revenue generated per sales rep relative to territory potential (Correct answer)
- Total number of accounts assigned to the territory
- Average product discount rate applied in the territory
Correct answer: Revenue generated per sales rep relative to territory potential
Measuring revenue generated against the estimated territory potential reveals how effectively a rep is capturing available market opportunity in their assigned area.
Question 6: What is the MAIN advantage of geographic territory alignment over industry-based alignment?
- It allows reps to develop deep industry expertise
- It reduces travel time and costs by clustering accounts in physical proximity (Correct answer)
- It enables reps to build stronger executive relationships
- It simplifies quota-setting based on industry growth rates
Correct answer: It reduces travel time and costs by clustering accounts in physical proximity
Geographic alignment groups nearby accounts together, reducing travel overhead and allowing reps to conduct more face-to-face meetings within a given time period.
CSE CSE Territory Management & Account Planning 1
What is the PRIMARY goal of sales territory design?