Loretta Inc., a U. S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a sales-force structure.

Territorial

Explanation:

Territorial sales force structure refers to a sales force organisation in which each salesperson is allocated to an exclusive geographical area to sell the company's full line of products or services. The territorial sales force structure has many advantages.

First, it clearly defines the salesperson's job, since only one salesperson covers the particular geographical area he or she gets all the credit or the blame for territory sales.

Second, the territorial structure improves the salesperson's drive to create local business connection which will in turn, improve the salesperson's selling effectiveness.

Finally, because each salesperson travels within a small geographic area, travel expenses tend to be low.

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