Conventional wisdom is that profits are maximized by sales reps focusing on the more important products and more profitable products. When the firm launches or is planning on launching a number of new products in succession, how should the company adjust the sales force?

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When a firm launches multiple new products, it may be necessary to expand the sales force to ensure that all the products receive the needed attention and proper sales efforts. By expanding the sales force, the firm can allocate sales reps to focus solely on the new products and not ignore the established, more profitable products. Increasing compensation or quotas for individual products could lead to sales reps neglecting other products or even engaging in unethical practices to meet quotas. Telling sales reps to sell new products at the expense of existing lines could also harm the firm's profitability and customer relationships. Therefore, expanding the sales force is the best choice.

Conventional Wisdom Is That Profits Are Maximized by Sales Reps