Imagine you are setting the budget for personal selling input, such as sales-force spending or sales calls, and deciding where to place it. Published studies disagree on how much sales respond, so a wrong benchmark can distort the budget. Which benchmark should your plan use, and which products and markets should get more selling input?
Personal selling has an adjusted benchmark for same-period sales.
Data chart
Predicted percent increase in same-period sales for a 1% increase in personal selling input (such as sales-force spending or sales calls), before adjusting for study design.
A 1% increase in personal selling input moves same-period sales more for early-stage products than for mature ones, more in other business-to-business selling than in pharmaceutical detailing, and more in Europe than in the US.
Predictions from 506 estimates in 75 studies (56% pharmaceutical, 26% defense recruiting) in the US and Western Europe, over about four decades up to 2010, each holding every other study feature at its average; exact values .535 and .271, .502 and .274, .428 and .318. Other business-to-business selling covers supplier sales to retailers, newspaper advertising space sales and industrial goods sales. The regional gap rests on the weakest evidence of the three.
Data chart
Predicted percent increase in same-period sales for a 1% increase in personal selling input, by the year the study data were collected, before adjusting for study design.
The more recent the data, the smaller the predicted same-period sales response to a 1% increase in personal selling input.
Predictions at three data-collection years from the same 506 estimates, each holding every other study feature at its average; the predicted response falls by about .005 per year of data; exact values .351, .304 and .26.
Key takeaway
Use personal selling's adjusted same-period benchmark, then adapt it for product stage, market and study design.
The evidence mainly covers pharmaceutical and defense-recruiting personal selling in the US and Western Europe over about four decades up to 2010. It measures sales response, not profit, which also depends on margins and the cost of selling.
Source
Albers, S., Mantrala, M. K., & Sridhar, S. (2010). Personal selling elasticities: A meta-analysis. Journal of Marketing Research, 47(5), 840–853. https://doi.org/10.1509/jmkr.47.5.840
Exact values behind the rounded figures: a sales response of approximately .31 after adjusting for study design (.34 before); predicted responses of .535 for early-stage and .271 for mature products, .428 for Europe and .318 for the US, .274 for pharmaceutical detailing and .502 for other business-to-business selling, and .351, .304 and .26 in data from 1982, 1992 and 2002.