Under which condition is a salesperson likely to have a smaller territory?

A salesperson is likely to have a smaller territory when they sell to retailers instead of wholesalers because the nature of retailer relationships often requires more localized service and attention. Retailers typically operate in specific geographical areas and require personalized interactions to manage inventory, promotions, and customer service effectively. This localized focus allows the salesperson to cultivate closer relationships with fewer, but more significant accounts, resulting in a smaller territory overall to cover.

In contrast, selling directly to consumers usually entails a broader market reach, as it can involve various channels or platforms rather than being limited to specific retail locations. More years of experience might lead to larger territories based on trust and proven success, while covering multiple states generally demands a larger territory to encompass the increased geographical area. Thus, focusing sales efforts on retailers necessitates a smaller, more manageable territory for effective engagement.