CSM CSM Territory Management & Planning 1 — Questions and Answers
Question 1: What is the primary purpose of territory management in sales?
- To limit the number of accounts a rep handles
- To maximize sales coverage and efficiency across defined geographic or account segments (Correct answer)
- To reduce travel expenses for the sales team
- To assign accounts alphabetically
Correct answer: To maximize sales coverage and efficiency across defined geographic or account segments
Territory management maximizes coverage and efficiency by strategically assigning accounts or regions to sales reps.
Question 2: Which factor is MOST important when designing sales territories?
- Rep seniority
- Office proximity
- Revenue potential and account concentration (Correct answer)
- Alphabetical order of accounts
Correct answer: Revenue potential and account concentration
Revenue potential and account concentration ensure territories are balanced and aligned with business goals.
Question 3: What does 'territory carving' refer to?
- Removing underperforming territories
- The process of defining and dividing geographic or account-based sales areas (Correct answer)
- Reducing territory size for new reps
- Creating seasonal sales zones
Correct answer: The process of defining and dividing geographic or account-based sales areas
Territory carving is the systematic process of defining sales boundaries to ensure balanced coverage and accountability.
Question 4: A sales manager notices one territory generates 80% of revenue while others underperform. What should they do first?
- Reassign all accounts to the top performer
- Conduct a territory analysis to identify imbalances and realign accordingly (Correct answer)
- Reduce the size of the underperforming territories
- Hire additional reps for the top territory
Correct answer: Conduct a territory analysis to identify imbalances and realign accordingly
A territory analysis identifies root causes of imbalances before making structural changes.
Question 5: Which tool is most commonly used to visualize and manage sales territories?
- Spreadsheet pivot tables only
- Geographic Information Systems (GIS) or territory mapping software (Correct answer)
- Email automation platforms
- Customer satisfaction surveys
Correct answer: Geographic Information Systems (GIS) or territory mapping software
GIS and territory mapping software provide visual overlays of accounts, revenue, and geography for effective territory management.
Question 6: What is a 'whitespace' opportunity in territory management?
- Blank fields in a CRM record
- Unassigned administrative tasks
- Potential customers or markets not yet targeted within a territory (Correct answer)
- Accounts with zero revenue
Correct answer: Potential customers or markets not yet targeted within a territory
Whitespace refers to untapped market segments or prospects within a territory that represent growth opportunities.
CSM CSM Territory Management & Planning 1
What is the primary purpose of territory management in sales?