An Integrated Model-Based Approach for Sales Force Structuring

Arvind Rangaswamy, Prabhakant Sinha and Andris Zoltners
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Arvind Rangaswamy: The Wharton School, University of Pennsylvania
Prabhakant Sinha: ZS Associates
Andris Zoltners: Northwestern University

Marketing Science, 1990, vol. 9, issue 4, 279-298

Abstract: This paper analyzes the problem of designing the structure of multiproduct sales forces selling in an environment where purchase decisions are made on a straight rebuy or modified rebuy basis. It addresses two key issues pertaining to structure: How many sales forces should the firm have and which products should be assigned to each sales force? First, the key determinants of sales force structure are identified and described. Next, a mathematical programming model is formulated that can aid firms in designing the structure of their multiproduct sales force. An application is then described in detail including sales response specification, parameter estimation, solution procedure, and model implementation. Insights from several of the numerous implementations of the model in the pharmaceutical industry are also summarized.

Keywords: sales force structure; product specialization; organizational design; sales resource allocation (search for similar items in EconPapers)
Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:9:y:1990:i:4:p:279-298

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