Examples of Territories Defined by Geography

A common method of dividing sales territories is by geography.

Countries

You have a small sales team and sell products internationally by phone. All salespeople have the expertise to sell all products to all customers. You choose to define territories by country. Too many customers are in the United States for one salesperson, so you create territories for different states that have a parent territory for the country. You group several small countries by creating a parent zone in the geography hierarchy.

Postal Codes

Your company sells mostly through on-site visits to companies in a few major cities in North America and Europe. To service city customers adequately, you must assign several salespeople to each city. You choose to create territories defined by postal codes that form hierarchies with their parent territories, defined by country. Customers with locations that aren't within the assigned postal codes get assigned to the parent country territory.