ABSTRACT

Organizational design can be a planned process or a series of random events in managing the sales force. Some firms haphazardly enter into this process, while other companies follow an objective process for selecting a sales force organizational structure that includes extensive analyses of: current and potential customers, the market environment, competitors, company assets, and the firm’s ability to serve the marketplace. Based upon this analysis, decisions are made about the number, type, and assignment of sales personnel. All sales force organizational decisions – whether planned or accidental – are directly influenced by the socio-economic, legal, and cultural variations found in the marketplace.1 When design decisions are haphazard, these variations can push and pull a firm in different and even opposing directions. Conversely, when the decisions are part of a logical process, the design decisions are more likely to be optimal ones.