This document discusses factors that influence compensation plan design, types of compensation plans, and steps in designing a compensation plan. It also covers the importance of motivating the sales force and principles a sales manager should follow in designing a motivational program, such as providing a sense of security, recognizing achievements, gaining approval, fostering loyalty, opportunities for advancement, leadership development, and considering human behavior.
Company needs profit to run and that profit comes from customers and to get customers, a company needs sales person,Thus the sales force play a crucial role in the existence of a company. If their performance is good , company will do good.and to maintain this level of efficiency, management is need. Yes! Their is a need to manage the sales force performance & this can be done by continuous evaluating and appraising their performance. Here are some factors that affect their performance & some methods to evaluate their perfomance that are mostly used now a days by many organization.
Sales force motivation Designing Territories and Allocating Sales EffortsRavikant Sharma
Sales force motivation Designing Territories and Allocating Sales Efforts ALONG WITH R] factors influencing sales force and how to design sales terriotories
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
Introduction to Consumer Behaviour; Consumer Behaviour
and Marketing Strategy; Consumer Involvement – Levels
of involvement, and Decision Making
Consumer Decision Process – Stages in Decision Process,
Information Search Process; Evaluative Criteria and
Decision Rules, Consumer Motivation – Types of Consumer
Needs, Ways of Motivating Consumers. Information
Processing and Consumer Perception.
Consumer Attitudes and Attitude Change; Influence of
Personality and Self Concept on Buying Behaviour,
Psychographics and Lifestyles, Impuse Buying.
Diffusion of Innovation and Opinion Leadership, Family
Decision Making, Influence of Reference Group
Industrial Buying Behaviour– Process and factors, Models
of Consumer Behaviour – Harward Seth, Nicosia, E& D,
Economic Model; Introduction to Consumer Behaviour
Audit; Consumer Behaviour Studies in India
7 Popular Ways To Motivate Your Sales TeamSharon Newey
7 Popular Ways To Motivate Your Sales Team
Motivation. It's talked about a lot in sales and leadership.
Can you really motivate another person?
Find out the answer and what is important for you to do as a sales manager when it comes to the topic of "motivation"
Company needs profit to run and that profit comes from customers and to get customers, a company needs sales person,Thus the sales force play a crucial role in the existence of a company. If their performance is good , company will do good.and to maintain this level of efficiency, management is need. Yes! Their is a need to manage the sales force performance & this can be done by continuous evaluating and appraising their performance. Here are some factors that affect their performance & some methods to evaluate their perfomance that are mostly used now a days by many organization.
Sales force motivation Designing Territories and Allocating Sales EffortsRavikant Sharma
Sales force motivation Designing Territories and Allocating Sales Efforts ALONG WITH R] factors influencing sales force and how to design sales terriotories
New-Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Market-skimming pricing is a strategy with high initial prices to “skim” revenue layers from the market
Product quality and image must support the price
Buyers must want the product at the price
Costs of producing the product in small volume should not cancel the advantage of higher prices
Competitors should not be able to enter the market easily
Market-penetration pricing sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share
Price-sensitive market
Inverse relationship of production and distribution cost to sales growth
Low prices must keep competition out of the market
Introduction to Consumer Behaviour; Consumer Behaviour
and Marketing Strategy; Consumer Involvement – Levels
of involvement, and Decision Making
Consumer Decision Process – Stages in Decision Process,
Information Search Process; Evaluative Criteria and
Decision Rules, Consumer Motivation – Types of Consumer
Needs, Ways of Motivating Consumers. Information
Processing and Consumer Perception.
Consumer Attitudes and Attitude Change; Influence of
Personality and Self Concept on Buying Behaviour,
Psychographics and Lifestyles, Impuse Buying.
Diffusion of Innovation and Opinion Leadership, Family
Decision Making, Influence of Reference Group
Industrial Buying Behaviour– Process and factors, Models
of Consumer Behaviour – Harward Seth, Nicosia, E& D,
Economic Model; Introduction to Consumer Behaviour
Audit; Consumer Behaviour Studies in India
7 Popular Ways To Motivate Your Sales TeamSharon Newey
7 Popular Ways To Motivate Your Sales Team
Motivation. It's talked about a lot in sales and leadership.
Can you really motivate another person?
Find out the answer and what is important for you to do as a sales manager when it comes to the topic of "motivation"
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Key Customer Account Management is the master-key to quantum sales improvement and retention of key customers.Yet few companies are able to convert good intentions to effective programs. Dr Wilfred Monteiro India's leading sales performance guru share a few insights and ideas.
2. Factors infuencing the design of a
compensation plan
Financial Stability of the firm
Size of the market
Nature of the Product
3. Types of Compensation Plan
1. Financial Compensation
Straight Salary Plan
Straight Commission Plan
Bonus and Incentive
Salary plus Incentive Plan( Combination Plan)
Drawing account and Commission Plan
Allied Methods
5. Steps in designing a compensation
plan
1. Determine Sales Force and Compensation Objectives
2. Determine Major Compensation issues
3. Implement Long term and Short term Compensation
Plans
4. Relate Rewards to Performance
5. Measurement of Performance
6. Appraise the Compensation Plan
6. Sales Force Motivation
Importance of a motivated sales force: WHY?
Constant rejections by customers, lower self- esteem,
customer complaints about product and service.
Frequent travelling, problems with work-life balance
7. Principles
What principles should a sales manager follow while
designing a motivational programme for salespeople?
Most incentive plans designed in organizations are based
on the application of the below mentioned principles –
Principle of Security
o A motivation programme should aim at providing a sense
of security to the salesperson – he should worry less about
the future and contribute to sales without looking at issues
about his basic survival and satisfaction of his physiological
needs
8. Principle of achievement
o Salesperson should know in advance the achievement
he will have from the motivational programme, so that
he will put more effort into achieving the desired goal
Principle of approval
o Salespeople expect that the good work by them be
praised, approved, and rewarded by the salesmanager
9. Principle of loyalty
o If there is a high sense of social respect for each other,
the salesperson tends to develop loyalty towards the
organization and respect towards the seniors and
managers.
Principle of advancement
o Every salesperson looks at progress and growth inside
the organization
10. Principle of leadership
o Programs should be designed to nurture salespeople
for future leadership roles.
Principle of human behaviour
o Sales manager should treat salespeople as human
beings with emotions, aspirations, and values.
