Organisational buying and sales administration in the retail sector

Abstract

This study has been conducted in Mexico, and discusses the impact of sales territory design and compensation on salespeople as predictors of performance of sales unit effectiveness in the retailing sector. The factors affecting the performance of sales force through balanced supervisory control, cognitive measures and coordination pattern of task performance in the team have been examined, and managerial implications have been derived for optimising the performance of the sales force in the paper. The findings of the study show that the balance between territory designing and incentive pays affects the overall performance of sales tasks performed by the field sales teams. The sales territory design also largely influences the level of performance both directly and indirectly through its relationship with salespeople's behavioural performance. Discussions in the paper also argue that behaviour control is a consistent predictor of salespeople's performance and effectiveness of the sales units. This indicates the importance of proactively monitoring, directing and evaluating salespeople by the managers.