IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-01449812.html
   My bibliography  Save this paper

Strategic Workforce Planning and sales force : a demographic approach to productivity

Author

Listed:
  • Marie Doumic

    (MAMBA - Modelling and Analysis for Medical and Biological Applications - LJLL - Laboratoire Jacques-Louis Lions - UPMC - Université Pierre et Marie Curie - Paris 6 - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique - Inria Paris-Rocquencourt - Inria - Institut National de Recherche en Informatique et en Automatique)

  • Mathieu Mezache

    (LJLL - Laboratoire Jacques-Louis Lions - UPMC - Université Pierre et Marie Curie - Paris 6 - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique, MAMBA - Modelling and Analysis for Medical and Biological Applications - LJLL - Laboratoire Jacques-Louis Lions - UPMC - Université Pierre et Marie Curie - Paris 6 - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique - Inria de Paris - Inria - Institut National de Recherche en Informatique et en Automatique)

  • Benoît Perthame

    (LJLL - Laboratoire Jacques-Louis Lions - UPMC - Université Pierre et Marie Curie - Paris 6 - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique, MAMBA - Modelling and Analysis for Medical and Biological Applications - LJLL - Laboratoire Jacques-Louis Lions - UPMC - Université Pierre et Marie Curie - Paris 6 - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique - Inria de Paris - Inria - Institut National de Recherche en Informatique et en Automatique)

  • Edouard Ribes

    (IRSEM - Institut de recherche stratégique de l'Ecole militaire - Ministère des armées)

  • Delphine Salort

    (LCQB - Biologie Computationnelle et Quantitative = Laboratory of Computational and Quantitative Biology - UPMC - Université Pierre et Marie Curie - Paris 6 - IBPS - Institut de Biologie Paris Seine - UPMC - Université Pierre et Marie Curie - Paris 6 - INSERM - Institut National de la Santé et de la Recherche Médicale - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique)

Abstract

Sales force Return on Investment (ROI) valuation with marketing mix frameworks is nowadays common. Sizing discussions then generally follow based on market data and business assumptions. Yet, according to our knowledge, little has been done to embed sales force demographic data (age/experience, tenure, gender etc...) as well as dynamics (especially turnover) in order to investigate the impact of the salesforce characteristics on sales. This paper illustrates such an attempt. It shows that sales force ROI valuation can benefit from a correction on turnover and that optimizing a sales rep hiring policy can unleash additional ROI points. The results are yet heavily dependent in the data structure of the study and their generalization would have to be investigated.

Suggested Citation

  • Marie Doumic & Mathieu Mezache & Benoît Perthame & Edouard Ribes & Delphine Salort, 2017. "Strategic Workforce Planning and sales force : a demographic approach to productivity," Working Papers hal-01449812, HAL.
  • Handle: RePEc:hal:wpaper:hal-01449812
    Note: View the original document on HAL open archive server: https://hal.science/hal-01449812v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-01449812v1/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marie Doumic & Benoît Perthame & Edouard Ribes & Delphine Salort & Nathan Toubiana, 2016. "Toward an integrated workforce planning framework using structured equations," Working Papers hal-01343368, HAL.
    2. Kremer, Sara T.M. & Bijmolt, Tammo H.A. & Leeflang, Peter S.H. & Wieringa, Jaap E., 2008. "Generalizations on the effectiveness of pharmaceutical promotional expenditures," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 234-246.
    3. Noah Gans & Yong-Pin Zhou, 2002. "Managing Learning and Turnover in Employee Staffing," Operations Research, INFORMS, vol. 50(6), pages 991-1006, December.
    4. Grosse, Eric H. & Glock, Christoph H. & Müller, Sebastian, 2015. "Production economics and the learning curve: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 401-412.
    5. John E. Calfee & Clifford Winston & Randolph Stempski, 2002. "Direct-to-Consumer Advertising and the Demand for Cholesterol-Reducing Drugs," Journal of Law and Economics, University of Chicago Press, vol. 45(S2), pages 673-690.
    6. Gerchak, Yigal & Parlar, Mahmut & Sengupta, S. Sankar, 1990. "On manpower planning in the presence of learning," Engineering Costs and Production Economics, Elsevier, vol. 20(3), pages 295-303, December.
    7. Grosse, E. H. & Glock, C. H. & Müller, Seb., 2015. "Production economics and the learning curve: A Meta-Analysis," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 74127, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Puneet Manchanda & Pradeep K. Chintagunta, 2004. "Responsiveness of Physician Prescription Behavior to Salesforce Effort: An Individual Level Analysis," Marketing Letters, Springer, vol. 15(2_3), pages 129-145, July.
    9. Darmon, Rene Y., 2004. "Controlling sales force turnover costs through optimal recruiting and training policies," European Journal of Operational Research, Elsevier, vol. 154(1), pages 291-303, April.
    10. Gary L. Lilien & Ambar G. Rao & Shlomo Kalish, 1981. "Bayesian Estimation and Control of Detailing Effort in a Repeat Purchase Diffusion Environment," Management Science, INFORMS, vol. 27(5), pages 493-506, May.
    11. Marie Doumic & Beno^it Perthame & Edouard Ribes & Delphine Salort & Nathan Toubiana, 2016. "Toward an integrated workforce planning framework using structured equations," Papers 1607.02349, arXiv.org, revised Dec 2016.
    12. Hewitt, Mike & Chacosky, Austin & Grasman, Scott E. & Thomas, Barrett W., 2015. "Integer programming techniques for solving non-linear workforce planning models with learning," European Journal of Operational Research, Elsevier, vol. 242(3), pages 942-950.
    13. Vakratsas, Demetrios & Kolsarici, Ceren, 2008. "A dual-market diffusion model for a new prescription pharmaceutical," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 282-293.
    14. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    15. Stremersch, Stefan, 2008. "Health and marketing: The emergence of a new field of research," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 229-233.
    16. Qin, Ruwen & Nembhard, David A., 2010. "Workforce agility for stochastically diffused conditions--A real options perspective," International Journal of Production Economics, Elsevier, vol. 125(2), pages 324-334, June.
    17. Desiraju, Ramarao & Nair, Harikesh S. & Chintagunta, Pradeep, 2004. "Diffusion of New Pharmaceutical Drugs in Developing and Developed Nations," Research Papers 1950, Stanford University, Graduate School of Business.
    18. Minhi Hahn & Sehoon Park & Lakshman Krishnamurthi & Andris A. Zoltners, 1994. "Analysis of New Product Diffusion Using a Four-Segment Trial-Repeat Model," Marketing Science, INFORMS, vol. 13(3), pages 224-247.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kremer, Sara T.M. & Bijmolt, Tammo H.A. & Leeflang, Peter S.H. & Wieringa, Jaap E., 2008. "Generalizations on the effectiveness of pharmaceutical promotional expenditures," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 234-246.
    2. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    3. Ruiz-Conde, Enar & Wieringa, Jaap E. & Leeflang, Peter S.H., 2014. "Competitive diffusion of new prescription drugs: The role of pharmaceutical marketing investment," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 49-63.
    4. Stremersch, S. & Lemmens, A., 2008. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," ERIM Report Series Research in Management ERS-2008-026-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Marc Fischer & Peter Leeflang & Peter Verhoef, 2010. "Drivers of peak sales for pharmaceutical brands," Quantitative Marketing and Economics (QME), Springer, vol. 8(4), pages 429-460, December.
    6. Puneet Manchanda & Dick Wittink & Andrew Ching & Paris Cleanthous & Min Ding & Xiaojing Dong & Peter Leeflang & Sanjog Misra & Natalie Mizik & Sridhar Narayanan & Thomas Steenburgh & Jaap Wieringa & M, 2005. "Understanding Firm, Physician and Consumer Choice Behavior in the Pharmaceutical Industry," Marketing Letters, Springer, vol. 16(3), pages 293-308, December.
    7. Stefan Stremersch & Aurélie Lemmens, 2009. "Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes," Marketing Science, INFORMS, vol. 28(4), pages 690-708, 07-08.
    8. Liu, Qiang & Gupta, Sachin, 2011. "The impact of direct-to-consumer advertising of prescription drugs on physician visits and drug requests: Empirical findings and public policy implications," International Journal of Research in Marketing, Elsevier, vol. 28(3), pages 205-217.
    9. Patricia Heuser & Peter Letmathe & Matthias Schinner, 2022. "Workforce planning in production with flexible or budgeted employee training and volatile demand," Journal of Business Economics, Springer, vol. 92(7), pages 1093-1124, September.
    10. Cavagnini, Rossana & Hewitt, Mike & Maggioni, Francesca, 2020. "Workforce production planning under uncertain learning rates," International Journal of Production Economics, Elsevier, vol. 225(C).
    11. Dhaval M. Dave, 2013. "Effects of Pharmaceutical Promotion: A Review and Assessment," NBER Working Papers 18830, National Bureau of Economic Research, Inc.
    12. Bai, Danyu & Tang, Mengqian & Zhang, Zhi-Hai & Santibanez-Gonzalez, Ernesto DR, 2018. "Flow shop learning effect scheduling problem with release dates," Omega, Elsevier, vol. 78(C), pages 21-38.
    13. Najmeh Madadi & Azanizawati Ma’aram & Kuan Yew Wong, 2017. "A simulation-based product diffusion forecasting method using geometric Brownian motion and spline interpolation," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1300992-130, January.
    14. O. Zeynep Akşin, 2007. "On valuing appreciating human assets in services," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(2), pages 221-235, March.
    15. Vakratsas, Demetrios & Kolsarici, Ceren, 2008. "A dual-market diffusion model for a new prescription pharmaceutical," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 282-293.
    16. Stefan Stremersch & Vardit Landsman & Sriram Venkataraman, 2013. "The Relationship Between DTCA, Drug Requests, and Prescriptions: Uncovering Variation in Specialty and Space," Marketing Science, INFORMS, vol. 32(1), pages 89-110, June.
    17. Verniers, Isabel & Stremersch, Stefan & Croux, Christophe, 2011. "The global entry of new pharmaceuticals: A joint investigation of launch window and price," International Journal of Research in Marketing, Elsevier, vol. 28(4), pages 295-308.
    18. Guo, Xuezhen, 2014. "A novel Bass-type model for product life cycle quantification using aggregate market data," International Journal of Production Economics, Elsevier, vol. 158(C), pages 208-216.
    19. W. David Bradford & Andrew N. Kleit, 2015. "Impact of FDA Actions, DTCA, and Public Information on the Market for Pain Medication," Health Economics, John Wiley & Sons, Ltd., vol. 24(7), pages 859-875, July.
    20. Navid Mojir & K. Sudhir, 2021. "A Structural Model of Organizational Buying for B2B Markets: Innovation Adoption with Share of Wallet Contracts," Cowles Foundation Discussion Papers 2315, Cowles Foundation for Research in Economics, Yale University.

    More about this item

    Keywords

    Workforce planning; Marketing mix; Learning curve; Optimal policies; Sales force turnover; Structured population dynamics;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-01449812. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.