Organization and Effectiveness of the Multiple-Product Salesforce

Rao, Ram C.; Turner, Ronald E.
May 1984
Journal of Personal Selling & Sales Management;May84, Vol. 4 Issue 1, p24
Academic Journal
This article focuses on the organization and effectiveness of the multiple-product salesforce. Pressures for reorganizing a firm's salesforce can arise from changes in the product line or from changes in the nature of the market. The continuing proliferation of product lines periodically raises the question of whether or not the firm should reorganize the product responsibilities of sales representatives. Salesforce reorganization may also be triggered by the changing needs of prospects in a firm's market. For example, some prospect segments may require the intensive coverage of a sales representative who is specialized in that industry's practices and needs. A change in the way that sales representatives' responsibilities are organized can have far-reaching consequences. To motivate appropriate selling behavior, changes may have to be made in the reward package, including revisions to the compensation plan. The concept of salesforce organization, as used in this study, means the assigned responsibilities of sales representatives to make sales calls on designated types of prospects and to promote the sale of designated types of products.


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