Salesforce decisions: A Markovian approach

Roger Calantone Ph.D., Rene Darmon Ph.D.

Journal of the Academy of Marketing Science · 1984 · Volume 12 · Issue 4

Abstract

This paper reports on the development, application, and evaluation of a Markov model used for macro sales force planning and control. The model portrays the succession of levels of sales force members from application to join the sales force, through all possible states, including possibilities of termination due to promotion, firing, and voluntary departures. The impact of several decision states such as recruiting, promotion, and training are then assessed, and the implications are evaluated through the use of the data from two large pharmaceutical firms. Several uses of the model are illustrated and the impact of managerial decisions on costs and profits are shown. The uses of the model for sales force design are also discussed.

Keywords

Sales Manager, Sales Force, Competence Level, MARKOVIAN Approach, Sales Position

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