PART I: BIG PICTURE

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PART I BIG PICTURE CHAP1 Intro to Selling
Sales Mgt CHAP2 Strategy Sales Program
Planning
PART II ROLE OF SALES FORCE CHAP3 Sales
Opportunity Mgt CHAP4 Account Relationship
Mgt CHAP5 Customer Interaction Mgt
PART V SALES FORCE LEADERSHIP CHAP9
Leadership CHAP10 Ethical Leadership CHAP11
Motivating Salespeople CHAP12 Compensating
Salespeople CHAP13 Evaluating Performance
PART IV SALES FORCE COMPETENCIES CHAP7
Recruiting Selecting Personnel CHAP8 Sales
Training
PART III SALES FORCE STRUCTURE CHAP6
Sales Force Org
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CHAPTER 12 COMPENSATING SALESPEOPLE
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Goals of a Sales Force Reward System
Acceptable ratio of costs to sales force output
in volume, profit, or other objectives Encourage
activities consistent with firms overall,
marketing, and sales force objectives and
strategies Attract and retain competent
salespeople, thereby enhancing long-term
customer relationships Be clear and be flexible
enough to allow adjustments that facilitate
administration
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The Customer-Product Matrix
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Compensating salespeople
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Use of Compensation Plan
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Compensating Salespeople
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Compensating Salespeople
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Compensating Salespeople
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Compensating Salespeople
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Frequent Payment Advantages (Monthly/Quarterly)
Advantages of Frequent vs. Infrequent Incentive
Payments
Infrequent Payment Advantages (Semiannually/Annual
ly)
. Payments at bonus time are larger and have
greater impact. . Performance is more stable
because short-term sales variations are smoothed
over the longer time horizon. . Incentives are
not paid till end of year smoother cash flow.
. Salespeople receive frequent feedback and
rewards when selling cycle is short. . Rewards
are close in time proximity to the successes that
provided the reward. . Strong link between
successful behavior and reward motivation
increased.
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Gross MarginCommission Problem

• Assume the following
• The salesperson makes 20 commission on the gross
  margin
• It costs 80 to make the product.
• Overhead is 10.

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Gross MarginCommission Problem
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Gross MarginCommission Problem