Final answer:
If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size. Salespeople with larger territories may need to cover a larger geographic area in order to reach potential customers and generate sales.
Step-by-step explanation:
If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size. This is because sales potential is influenced by factors such as population density, income levels, and consumer preferences, which can vary across different geographic areas. For example, an urban area with a high population density and higher income levels may have higher sales potential compared to a rural area with lower population density and lower income levels.
As a result, salespeople with larger territories may need to cover a larger geographic area in order to reach potential customers and generate sales. This could involve traveling longer distances or spending more time on the road compared to salespeople with smaller territories. It's important for managers to consider both sales potential and geographic size when forming territories. While it may not be possible to have perfectly equal territories in terms of both factors, managers can aim to create territories that are as balanced as possible to ensure fairness and equal opportunities for salespeople.