There is a four step process to develop a sales territory plan. The first step is to select a territory criteria. This is the factor you will use to create territory boundaries. Generally these are geographical units such as states, counties, cities, and ZIP codes. In some cases, territories may be set by the type of customer. Whatever criteria you use, decide on your territory building block. The next step is determining sales territories using what we call a sales territory criteria. This first requires locating customers, and then grouping territories into groups where the workload for the sales force is equalized. We will have more on that in a minute. Finally, the last step is evaluating the effectiveness of the territory plan. In particular, in actual practice, are the workloads equalized?