SALES FORCE SIZING

• Allocate sales force effort to market segments and products

• Effective Sales Force Sizing & Territory Design for
Maximum Revenue and Profit Potential.

FACTOR

• Sales force budget

• No of sales person to employ
• Compensation scheme*
*The compensation schemes affect the quality of the people that can be attract to a position as well
as the way they perform
 Sales force Heuristics
BREAKDOWN OR PERCENTAGE-OF-SALES

• An historical or justified sales force

Average revenue generated by sales person
=
Sales forecast
 Market response Methods
Formula
Maximize Z = PQ(X)-C1(Q)-C2(X)
Where,
Z= profit
P= selling price
Q(X)=No. of unit sold as function of selling effort
C2(Q)=total cost of producing and merchandising Q unit
C2(X)= total cost of selling effort of level X

Here we have to assume all other element in the marketing mix are fixed(price
advertising, etc.)
 Work load Methods
•Maximize
  ZCX

Where,
m= profit margin per unit sold
X = number of salespersons
C = cost per salesperson
P = corporate work load,