Sales Force Management we are talking here with reference to Sales Force Automation. We talked Workload Method, Sales Potential in previous posts as part of agency management system.
Today we are going to talk about Incremental Method as tool deciding the size of the sales force.
The incremental method is the best approach to determine sales force size. It is based on one proposition that net profit will increase when additional sales personnel are added if the incremental sales revenues exceed the incremental costs incurred. To apply this method as organization need two important items of information namely:
- Incremental revenue.
- Incremental costs.
Though this method is conceptually correct, it s also the most difficult to apply. It requires lot of efforts from the organization side to develop a sales response function to use in approximating market behavior in relation to alternative levels of personal selling efforts, and one need to have an efficient research and information team in the organization.