What describes a territory where a small percentage of products accounts for a large proportion of sales?

The correct answer is the Pareto Principle, which is often summarized by the observation that a small number of causes or inputs (typically about 20%) are responsible for a large proportion (around 80%) of the effect or outcome. In the context of sales territories, this principle illustrates that a limited selection of products may contribute to a significant portion of sales revenue. This insight helps sales managers prioritize their efforts and resources, focusing on the products that yield the highest returns.

The Pareto Principle can be pivotal in sales force management, guiding decisions on which products to focus on, which customers to target, and how to allocate resources efficiently for maximum impact. Understanding this concept allows sales teams to maximize their effectiveness by identifying and leveraging the most profitable areas of their portfolio.

Other options bring different connotations— the Sales Volume Principle does not specifically delineate the disproportionate ratio of products to sales, the 20-80 Principle is a reiteration of the Pareto Principle but less widely recognized in this context, and the Sales Efficiency Principle pertains more to cost and resource management than to the sales composition itself. Hence, the Pareto Principle stands out as the most accurate descriptor of the scenario where a small percentage of products generates a large portion of sales.