Collecting and processing territory and account information are major aspects of a salesperson's task. To a large extent, salespeople's effectiveness depends on the amount and quality of the market information available to them (such as their customers' needs and potential, the likelihood of getting an order after a certain contact time, etc.). Although it is not always easy to disentangle, these information gathering and processing activities on one hand, and the effective contact time devoted to selling to clients and prospects on the other, vie for the limited time resources available to a salesperson. This paper provides a simple statistical procedure for estimating the costs of information gathering and processing by a salesperson. The model can be used by management for estimating the most profitable territory size to be assigned to each salesperson, and consequently for estimating the optimal sales force size.
DARMON, R. (1995). The Effects of Salespeople's Information Activities and Market Development upon the Optimal Sales Force Effort Level. In: Proceedings of the Seventh Bi-annual World Marketing Congress of the Academy of Marketing Science. Monash University, pp. 9-16.