Organization and Effectiveness of the Multiple-Product Salesforce

Abstract

AbstractAn effective salesforce organization is one which permits sales representatives to provide appropriate selling services. Two types of services which are related to selling effectiveness are the quality of selling skill and the quantity of selling effort provided by sales representatives. The results of the analysis of data obtained from a multidivisional firm are consistent with the hypothesized relationship between selling effectiveness and these services. Management can design an effective salesforce organization by specifying the right amount and type of specialization of selling roles. The experiences of some prominent firms are examined for insights into the market conditions for which various selling roles are appropriate. One determinant is the type of selling expertise which is required—whether expertise in products or in prospects' needs. Another determinant is the existence of interdependencies between products or between prospects' needs. A prescriptive typology based on these determina...