1. (sales definition) A segment of the firm's market assigned to a salesperson or a group of salespeople. Comment: While a sales territory is typically defined by customers within a geographic boundary, it can be defined by customer types. 2. (sales definition) A group of present and potential customers that is assigned to a salesperson, branch, dealer, or distributor for a given period of time. The key word in this definition is customers. Good sales territories are made up of customers who have money to spend and the willingness to spend it. Although the key to sales territory design is customers, the notion of a territory is typically operationalized using geographical boundaries. In cases in which products are highly technical and sophisticated, product specialists rather than geographic boundaries define sales territories.