Type of compensation plans
Straight Salary
Plan
Under this plan sales person receive fixed sums at regular
intervals, representing total payments for their services.
Straight-
Commission Plan
The sales personnel should be paid according to productivity.
Combination of
Salary & Incentive
Plan
It includes fixed salary plus incentive according to the
performance of the individual sales person.
Bonus
This is an amount paid for accomplishing a specific sales task a commission
varies in amount with sales volume or other commission base.
Fringe benefits
This do not bear direct relationships to job performance, it is normally percent
of the total sales performance package, out of which some are required by
legal and government such as provident fund, gratuity etc.
Motivation of sales personnel
Morale building
Motivation in the larger sense includes morale, good morale leads to good
motivation and to good performance.
The reasons for poor morale.
(1) Improper designing of the sales territories.
(2) Some salesman might be give territories with little potential
(3) The compensation plan may be faulty.
(4) Performance evaluation not done with fairness and objectivity.
(5) Unfair treatment in rewards, transfer and promotions.
Symptoms of poor morale :
(a) Minor complaints get magnified.
(b) Unionism suddenly arise
(c) Anti-management attitude of sales personnel.
Sales Coaching / Supervision
It is perhaps the most neglected, but potentially most rewarding area.
Important aspects that required close supervision include…
Setting norms for sales calls.
Managing key customers.
Guiding salesman on route planning.
Evaluation / Appraisal
The sales personnel perform better when performance criteria, goals, and
tasks are established clearly and by mutual agreement.
Training & Development
In every area training is the prerequisite to improvement, like-wise the
purpose of sales training is to achieve improved job performance.
Steps involved in designing sales training…
1) Defining training aims.
2) Determining the training needs.
3) Determining the special needs.
4) Deciding nature and Type of training required
In-company Training Group Training
External Training On-the job Training
Individual Training Off-the job Training.
5) Deciding the content
6) Choosing the methods
The Lecture Case discussion
The Personal conference Important decision
Demonstrations Gaming
Role Playing
7) Developing the material required for training.
8) Evaluating the effectiveness of the training.
Aims of sales training
• Normally the sales training will have following aims to inculcate new
techniques or to improve upon the existing knowledge.
i. To increase sales.
ii. To acquire new accounts.
iii. Faster turn round stocks.
iv. Selling a complete product line instead of just fast selling items.
v. Better merchandising & sales promotion.
vi. Better technical knowledge.
vii. Improving sales presentation & sharpening sales skills.
viii. Improving customer relations & dealer relations.
Topics of training
Knowledge about market Knowledge about competition
Knowledge about customers Knowledge about company
Knowledge about products Salesmanship
Managing the marketing channels
Both the manufactures and distributive outlets have much to gain from cooperation,
and much to loose if it is lacking.
Ensuring growth and developing new accounts
Sales through identifying new markets and the new customers
Sales communication and reporting
Sales management is carried out largely through communication – either it is
oral or written.
Straight Salary
Plan
Under this plan sales person receive fixed sums at regular
intervals, representing total payments for their services.
Straight-
Commission Plan
The sales personnel should be paid according to productivity.
Combination of
Salary & Incentive
Plan
It includes fixed salary plus incentive according to the
performance of the individual sales person.
Bonus
This is an amount paid for accomplishing a specific sales task a commission
varies in amount with sales volume or other commission base.
Fringe benefits
This do not bear direct relationships to job performance, it is normally percent
of the total sales performance package, out of which some are required by
legal and government such as provident fund, gratuity etc.
Motivation of sales personnel
Morale building
Motivation in the larger sense includes morale, good morale leads to good
motivation and to good performance.
The reasons for poor morale.
(1) Improper designing of the sales territories.
(2) Some salesman might be give territories with little potential
(3) The compensation plan may be faulty.
(4) Performance evaluation not done with fairness and objectivity.
(5) Unfair treatment in rewards, transfer and promotions.
Symptoms of poor morale :
(a) Minor complaints get magnified.
(b) Unionism suddenly arise
(c) Anti-management attitude of sales personnel.
Sales Coaching / Supervision
It is perhaps the most neglected, but potentially most rewarding area.
Important aspects that required close supervision include…
Setting norms for sales calls.
Managing key customers.
Guiding salesman on route planning.
Evaluation / Appraisal
The sales personnel perform better when performance criteria, goals, and
tasks are established clearly and by mutual agreement.
Training & Development
In every area training is the prerequisite to improvement, like-wise the
purpose of sales training is to achieve improved job performance.
Steps involved in designing sales training…
1) Defining training aims.
2) Determining the training needs.
3) Determining the special needs.
4) Deciding nature and Type of training required
In-company Training Group Training
External Training On-the job Training
Individual Training Off-the job Training.
5) Deciding the content
6) Choosing the methods
The Lecture Case discussion
The Personal conference Important decision
Demonstrations Gaming
Role Playing
7) Developing the material required for training.
8) Evaluating the effectiveness of the training.
Aims of sales training
• Normally the sales training will have following aims to inculcate new
techniques or to improve upon the existing knowledge.
i. To increase sales.
ii. To acquire new accounts.
iii. Faster turn round stocks.
iv. Selling a complete product line instead of just fast selling items.
v. Better merchandising & sales promotion.
vi. Better technical knowledge.
vii. Improving sales presentation & sharpening sales skills.
viii. Improving customer relations & dealer relations.
Topics of training
Knowledge about market Knowledge about competition
Knowledge about customers Knowledge about company
Knowledge about products Salesmanship
Managing the marketing channels
Both the manufactures and distributive outlets have much to gain from cooperation,
and much to loose if it is lacking.
Ensuring growth and developing new accounts
Sales through identifying new markets and the new customers
Sales communication and reporting
Sales management is carried out largely through communication – either it is
oral or written.
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