You’re expanding to new markets, but you don’t know how to structure territories. You need to launch in new regions, but territory planning feels overwhelming. This uncertainty prevents you from expanding effectively and capturing new market opportunities.
New market territory planning solves this by providing a structured approach. It guides territory setup from scratch, which helps you launch in new markets effectively. This planning is essential for successful market expansion.
This guide provides strategies for setting up territories from scratch in a new geography, helping you launch in new markets effectively with proper territory planning and structure.
We’ll explore why new market planning matters, market research, territory structure design, rep assignment, and launch execution. By the end, you’ll understand how to plan territories for new markets.
Key Takeaways
- Research markets first—understand market potential before designing territories
- Design structure—create territory boundaries based on market data
- Assign reps strategically—match reps to territories based on capabilities
- Plan launch carefully—execute territory launch with proper support
- Monitor and adjust—track performance and optimize territories quickly
Table of Contents
Why New Market Planning Matters
Launching in new markets without territory planning is risky. When you don’t plan territories, coverage is incomplete and resources are wasted. This risk prevents successful expansion.
New market planning matters because it enables successful launches. When you plan territories properly, coverage is complete and resources are optimized. This planning enables effective market expansion.
The reality: Most market expansions fail because territories aren’t planned properly. New market territory planning enables successful launches and effective market coverage.
Market Research
Market research provides foundation for territory design. When you research markets thoroughly, territory design is informed and effective.
Market Potential Analysis
Assess market opportunity:
- Calculate total addressable market
- Measure market size
- Assess market growth
- Evaluate market potential
- Build market analysis
Why this matters: Market potential analysis shows opportunity. If you analyze potential, you can prioritize markets. This analysis enables informed decisions.
Account Identification
Identify target accounts:
- List potential accounts
- Assess account sizes
- Evaluate account potential
- Identify account locations
- Build account database
Why this matters: Account identification enables coverage planning. If you identify accounts, you can design territories around them. This identification enables effective coverage.
Geographic Analysis
Understand geography:
- Map market geography
- Identify key cities and regions
- Assess travel requirements
- Understand geographic factors
- Build geographic understanding
Why this matters: Geographic analysis informs territory boundaries. If you understand geography, territories are more efficient. This analysis enables smart boundaries.
Competitive Landscape
Assess competition:
- Evaluate competitive presence
- Assess market share
- Understand competitive dynamics
- Factor in competition
- Build competitive understanding
Why this matters: Competitive landscape affects territory design. If you assess competition, you understand market dynamics. This assessment enables realistic planning.
Pro tip: Use our Sales Territory Optimization Tool to analyze new market potential. Input market data, account information, and geographic factors to design optimal territories for new market launches.
Territory Structure Design
Territory structure design creates optimal territory boundaries. When you design structure effectively, territories maximize coverage and efficiency.
Initial Territory Boundaries
Design territory boundaries:
- Create initial boundaries
- Group markets logically
- Design geographic territories
- Establish clear boundaries
- Build territory structure
Why this matters: Initial boundaries provide foundation. If you design boundaries well, territories are effective. This design enables efficient coverage.
Scalable Structure
Design for growth:
- Create scalable territory structure
- Plan for future expansion
- Design flexible boundaries
- Build growth-ready structure
- Create scalable design
Why this matters: Scalable structure enables growth. If you design for scalability, territories can expand. This design enables future growth.
Coverage Optimization
Optimize for coverage:
- Ensure complete market coverage
- Eliminate gaps
- Optimize territory boundaries
- Build optimal coverage
- Create coverage efficiency
Why this matters: Coverage optimization ensures no missed opportunities. If you optimize coverage, all markets are covered. This optimization maximizes opportunity capture.
Efficiency Considerations
Design for efficiency:
- Minimize travel time
- Group nearby markets
- Optimize for rep efficiency
- Build efficient structure
- Create efficiency focus
Why this matters: Efficiency considerations improve productivity. If you design for efficiency, reps are more productive. This consideration enables better performance.
Rep Assignment
Rep assignment matches reps to territories. When you assign reps effectively, territories are covered by capable reps.
Rep Capability Matching
Match reps to territories:
- Consider rep experience
- Factor in rep specializations
- Match capabilities to territories
- Assign based on strengths
- Build capability matching
Why this matters: Capability matching improves performance. If you match reps to territories, performance improves. This matching enables better results.
New Rep Considerations
Plan for new reps:
- Consider hiring needs
- Plan rep assignments
- Account for new rep onboarding
- Build rep planning
- Create rep strategy
Why this matters: New rep considerations ensure coverage. If you plan for new reps, territories are covered. This consideration enables successful launches.
Territory Size Matching
Match territory size to rep capacity:
- Consider rep capacity
- Match territory size appropriately
- Ensure manageable workloads
- Build size matching
- Create capacity alignment
Why this matters: Territory size matching ensures manageability. If you match size to capacity, territories are manageable. This matching enables performance.
Support Requirements
Plan for rep support:
- Assess support needs
- Plan training requirements
- Account for support resources
- Build support planning
- Create support strategy
Why this matters: Support requirements ensure success. If you plan support, reps succeed. This planning enables performance.
Launch Execution
Launch execution implements territory plans. When you execute effectively, territories launch successfully and coverage begins.
Phased Launch Approach
Launch territories gradually:
- Start with pilot territories
- Launch in phases
- Expand gradually
- Build phased approach
- Create gradual launch
Why this matters: Phased launch reduces risk. If you launch gradually, you can adjust. This approach enables learning and improvement.
Rep Onboarding
Onboard reps effectively:
- Provide territory training
- Share market information
- Support rep onboarding
- Build onboarding process
- Create effective onboarding
Why this matters: Rep onboarding ensures success. If you onboard effectively, reps succeed. This onboarding enables performance.
Performance Monitoring
Monitor launch performance:
- Track territory performance
- Monitor rep activity
- Assess coverage effectiveness
- Build performance monitoring
- Create monitoring system
Why this matters: Performance monitoring enables improvement. If you monitor performance, you can adjust. This monitoring enables optimization.
Quick Adjustments
Adjust territories quickly:
- Make adjustments based on data
- Optimize territories rapidly
- Fix problems quickly
- Build adjustment capability
- Create rapid optimization
Why this matters: Quick adjustments improve results. If you adjust quickly, territories improve. This adjustment enables better performance.
Pro tip: Use our Sales Territory Optimization Tool to design territories for new markets. Input market data and rep information to generate optimal territory assignments. Monitor performance after launch and adjust territories based on actual results.
Your Next Steps
New market territory planning enables successful market expansion. Research markets, design territory structure, assign reps strategically, then execute launch carefully.
This Week:
- Research new market potential and account opportunities
- Analyze geographic factors and travel requirements
- Design initial territory structure using our Sales Territory Optimization Tool
- Plan rep assignment strategy
This Month:
- Finalize territory boundaries and structure
- Assign reps to territories
- Onboard reps for new market launch
- Execute phased territory launch
Going Forward:
- Monitor territory performance closely
- Adjust territories based on performance data
- Optimize territories for efficiency and coverage
- Scale territories as markets grow
Need help? Check out our Sales Territory Optimization Tool for territory design, our territory design guide for structuring territories, our territory scorecard guide for evaluating territories, and our data-driven territory guide for balancing territories.
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FAQs - Frequently Asked Questions About Territory Planning for New Markets: How to Launch in a Region the Right Way
What market research should I complete before designing territories for a new region?
Analyze total addressable market size and growth, identify target accounts and their locations, study geographic factors like travel requirements, and assess the competitive landscape.
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Thorough market research has four components. Market potential analysis: calculate the total addressable market, measure its size and growth rate, and evaluate the realistic opportunity in the region. Account identification: list potential customer accounts, assess their sizes and potential revenue, evaluate which accounts are most valuable, and map their physical locations. Geographic analysis: map the market geography, identify key cities and regions, assess travel requirements between accounts, and understand geographic factors that affect territory design. Competitive landscape: evaluate existing competitors' presence and market share, understand competitive dynamics, and factor competition into your territory design. This research provides the data foundation for designing territories that maximize coverage and efficiency.
How should I design territory boundaries when entering a market for the first time?
Group accounts logically by geography, design for minimal travel time between accounts, ensure complete market coverage with no gaps, and build scalable boundaries that can expand as you grow.
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Territory structure design for new markets should balance four priorities. First, create initial boundaries by grouping nearby markets and accounts logically based on geography and industry. Second, design for scalability—build territory boundaries that can expand or be subdivided as the market grows, rather than rigid structures that need complete redesign later. Third, optimize coverage by ensuring every target account falls within a territory and there are no gaps where potential customers go unserved. Fourth, maximize efficiency by minimizing travel time, grouping accounts that are geographically close, and designing territories that reps can cover productively within their available time. Your research data—account locations, market potential, and geographic factors—directly informs each of these design decisions.
Should I launch all new territories at once or use a phased approach?
Use a phased launch—start with pilot territories, learn from initial performance, adjust your approach, then expand gradually to remaining territories.
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A phased launch approach is strongly recommended for new market entry because it reduces risk and enables learning. Start by launching in one or two pilot territories that represent different market conditions—perhaps one high-potential urban area and one smaller secondary market. Monitor pilot performance closely: track territory activity, assess coverage effectiveness, and identify what's working and what isn't. Use insights from the pilot to adjust your territory design, rep onboarding process, and support strategy before rolling out to the remaining territories. This gradual approach allows you to fix problems when they're small, refine your approach with real data, and scale with confidence rather than committing all resources to an untested plan across every territory simultaneously.
How do I match the right sales reps to new market territories?
Match reps based on their experience, specializations, and strengths, ensure territory size matches rep capacity, and plan for adequate onboarding and support.
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Rep assignment in new markets requires matching across multiple dimensions. Capability matching: consider each rep's experience with the industry or customer type in the territory, factor in specializations that align with the territory's key accounts, and assign based on strengths rather than just availability. Territory size matching: ensure the territory workload matches the rep's capacity—too large means incomplete coverage, too small means wasted talent. Consider whether you need to hire new reps or can assign existing team members who are ready for new challenges. Plan for support: new market reps need territory-specific training, market information including account profiles and competitive intelligence, and ongoing support during the launch period. Account for onboarding time in your performance expectations—don't expect full productivity from a rep in a brand-new territory in the first quarter.
What performance metrics should I track immediately after launching in a new territory?
Track rep activity levels, coverage effectiveness, early pipeline development, and actual versus expected performance—then use the data to make quick adjustments.
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Performance monitoring in new territories should focus on leading indicators since revenue results take time. Track rep activity: calls, meetings, proposals, and customer engagement levels to ensure the territory is being actively worked. Monitor coverage effectiveness: are all target accounts being reached, or are there gaps? Assess early pipeline development: are prospects moving through your funnel, and at what pace? Compare actual results to your launch expectations to identify territories that are ahead or behind plan. Most importantly, use this data to make quick adjustments—if a territory is underperforming, diagnose whether it's a territory design issue, a rep capability issue, or a market issue, and make changes fast. New market territories need more frequent monitoring than established ones—review weekly during the first quarter.
What's the biggest reason new market territory expansions fail?
Most expansions fail because territories aren't planned properly—businesses rush in without adequate market research, clear territory boundaries, or appropriate rep assignment.
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The primary failure mode is launching without proper territory planning. This manifests in several ways: expanding without sufficient market research means territory boundaries don't align with where accounts actually are. Poorly designed territories create coverage gaps where potential customers are missed or overlap where multiple reps compete for the same accounts. Rep assignment without capability matching means territories are covered by reps who lack the experience or skills needed for that market. And launching everything at once without a phased approach means you can't learn and adjust before committing all resources. Successful new market expansion requires doing the upfront work: research markets thoroughly, design territories with data, match reps to territories strategically, execute a phased launch, and monitor performance closely so you can adjust quickly.
Sources & Additional Information
This guide provides general information about new market territory planning. Your specific situation may require different considerations.
For territory optimization calculations, see our Sales Territory Optimization Tool.
Consult with professionals for advice specific to your situation.
