What is a common reason management creates overlapping sales territories?

Overlapping sales territories can be a strategic decision made by management to encourage healthy competition among sales reps. By allowing sales representatives to target the same customers or accounts, it can spark motivation within the team. This setup can lead to increased efforts from each representative to win over customers, ultimately driving sales growth.

The approach fosters a competitive environment, which can result in higher performance and better service for customers as each rep strives to demonstrate their value. This strategy can also help in identifying varying sales tactics that work better for different customer segments, leading to additional insights that can benefit the overall sales strategy.

In contrast, management would look to avoid friction between reps and minimize customer dissatisfaction, but the purpose of overlapping territories primarily revolves around the competitive advantage it can generate.