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Management Science
Article
License: CC BY NC
Data sources: UnpayWall
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https://dspace.mit.edu/bitstre...
Part of book or chapter of book
License: CC BY NC
Data sources: UnpayWall
Management Science
Article . 1971 . Peer-reviewed
Data sources: Crossref
https://doi.org/10.1007/978-3-...
Part of book or chapter of book . 1976 . Peer-reviewed
Data sources: Crossref
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A Multiple-Product Sales Force Allocation Model

Authors: MONTGOMERY, David B.; Silk, A.J.; Zaragoza, C.;

A Multiple-Product Sales Force Allocation Model

Abstract

When several products are marketed by the same sales force, it frequently becomes impossible or impractical for salesmen to promote all items in the product line extensively in each and every time period. Management's problem is to decide how the available selling effort should be allocated across products and over time. The opportunity costs associated with using limited selling resources to promote certain products but not others must be evaluated. This paper describes a decision calculus-type modeling system for dealing with this question. The problem is analyzed by a two-step procedure. First, a response function is defined which relates selling effort to sales and profit results in a manner which represents some behavioral phenomena considered to be important. An interactive conversational program elicits judgmental data from managers which are used to parameterize the response model. A separate response function is specified for each product in the firm's line by this method. The set of response functions so obtained becomes the input for the second component of the system, an allocation heuristic. An incremental search procedure is employed to find an allocation of the sales force's time to the various products and over several time periods which is “best” in terms of total contribution to company profits. The model is presented in the context of an ethical drug manufacturer's multiple-product sales force allocation problem. Results of an application are summarized and implementation considerations noted. A comparison of the model-based allocation with that determined previously by management indicated that the former plan would offer a substantial improvement in profits.

Country
Singapore
Keywords

Business

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
44
Average
Top 10%
Average
hybrid