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Sales-Force Decision Models: Insights from 25 Years of Implementation

Author

Listed:
  • Prabhakant Sinha

    (ZS Associates, 1800 Sherman Avenue, Evanston, Illinois 60201)

  • Andris A. Zoltners

    (J. L. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois 60208, and ZS Associates)

Abstract

Over 25 years, we have developed many sales-force and modeling insights through over 2,000 projects with several hundred selling organizations in over 50 countries. Content insights are useful in making sales-force decisions. Examples are that profitability is flat for a wide range of sales-force sizes; phased sales-force growth is rarely optimal; focused strategies dominate scattered strategies; most sales territories (55 percent) are too large or too small; and no compensation plan satisfies everyone. Implementation insights concern model building, use, and implementation, for example, a model's economic value can come from such sources as reduced uncertainty, accuracy, increased speed, objectivity, and stakeholder involvement; theory and practice have different and complementary perspectives; experience and wisdom are sometimes better than models; and models provide insights, while people make decisions.

Suggested Citation

  • Prabhakant Sinha & Andris A. Zoltners, 2001. "Sales-Force Decision Models: Insights from 25 Years of Implementation," Interfaces, INFORMS, vol. 31(3_supplem), pages 8-44, June.
    • Handle: RePEc:inm:orinte:v:31:y:2001:i:3_supplement:p:s8-s44
    DOI: 10.1287/inte.31.3s.8.9675
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    References listed on IDEAS

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    11. Edward I. Brody, 2001. "Marketing Engineering at BBDO," Interfaces, INFORMS, vol. 31(3_supplem), pages 74-81, June.
    12. Germann, Frank & Lilien, Gary L. & Rangaswamy, Arvind, 2013. "Performance implications of deploying marketing analytics," International Journal of Research in Marketing, Elsevier, vol. 30(2), pages 114-128.
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    15. John Hauser & Gerard J. Tellis & Abbie Griffin, 2006. "Research on Innovation: A Review and Agenda for," Marketing Science, INFORMS, vol. 25(6), pages 687-717, 11-12.
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    17. Gahler, Daniel & Hruschka, Harald, 2016. "Resource Allocation Heuristics for Unknown Sales Response Functions with Additive Disturbances," University of Regensburg Working Papers in Business, Economics and Management Information Systems 488, University of Regensburg, Department of Economics.
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