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what is meant by Territory Management in salesforce?

PratikPratik (Salesforce Developers) 
Hi Naganjaneya,

Territory management is necessary for orgs where the account assignment and users to that accounts changes frquently based on the account attribute.

It expands the account sharing criteria.

You can go into the details:
https://help.salesforce.com/HTViewHelpDoc?id=territories_def.htm&language=en_US

Example:
https://help.salesforce.com/HTViewHelpDoc?id=faq_getstart_how_does_salesforce.htm&language=en_US

Please post if you have any specific question on territory.

Thanks,,
Pratik