December 2017
Intermediate to advanced
390 pages
7h 51m
English
Content preview from Measuring MarketingBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Chapter 95 Independent Sales Representative Analysis
Measurement Need
A critical need is determining whether to have a dedicated sales force, and the associated higher fixed costs, or an independent sales force, usually from a third-party firm contracted to the company. The question is how to compare these two approaches.
Solutioni
The analysis begins with setting the cost of a company sales force and an independent sales force equal to each other:
Cost of company sales force = Cost of independent sales force
Sales management would need to solve for the breakeven level of sales, below which the independent sales force would be more attractive and above which the dedicated sales force is the more sensible approach. To do this, cost comparisons ...
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