Marketing: Custom Edition for Texas A&M University 17th Edition by William Pride,Ferrell

Exercise 18

Leap Athletic Shoe Inc., a newly formed company, is in the process of developing a sales strategy. Market researchers have determined that sales management should segment the market into five regional territories. The sales potential for the North region is $1.2 million; for the West region, $1 million; for the Central region, $1.3 million; for the South Central region, $1.1 million; and for the Southeast region, $1 million. The firm wishes to maintain some control over the training and sales processes because of the unique features of its new product line, but Leap marketers realize that the salespeople need to be fairly aggressive in their efforts to break into these markets. They would like to provide the incentive needed for the extra selling effort. What type of sales force compensation method would you recommend to Leap? Why?