University of Central Florida (UCF) MAR4418 Strategic Sales Force Management Exam 2 Practice

A larger sales territory can often be attributed to higher product demand in the area. When there is increased demand for a product, it justifies expanding the territory assigned to a sales representative. This expansion allows the company to effectively capitalize on the heightened interest and potential sales opportunities within that territory.

By allocating a larger area to a salesperson, the organization aims to enhance sales efforts and increase market penetration, ensuring that the rep is able to reach more customers who are likely to purchase due to the demand. This strategic approach is typically centered around maximizing sales potential in regions where the potential for revenue is significantly higher, indicating that a well-defined link exists between demand levels and territory size.

The other options present factors that do not necessarily correlate directly to increasing the size of a sales territory in the same manner. For example, while a high number of customers per sales rep might suggest a busy territory, it does not inherently lead to a larger territory. An organized sales force can enhance operational efficiency but does not influence how territory sizes are determined. Similarly, a decrease in sales force size would typically lead to territories being consolidated rather than expanded.