The document discusses sales compensation plans, sales training, sales compensation modes, developing a sales compensation plan, sales control processes and principles, and setting quantitative and qualitative performance standards. It provides guidelines for establishing an effective sales compensation plan that offers adequate pay for performance, incentives, benefits and opportunities. It also outlines areas and methods for sales training, different compensation modes, and steps for implementing sales control processes aimed at improving performance.

1. 1-1
SALES COMPENSATION PLAN
 Sales people look for/ Proper compensation plan:
• Adequate income for adequate performance
• Superior income for superior performance
• Incentives for special achievements
• A base for fixed income for security
• At least primary fringe benefits
• Opportunity for advancement and promotion
• A yardstick to measure performance
• Equitable treatment
• Flexibility in plan
• Simple plan
• Highly motivational

2. 1-2
SALES TRAINING
 Aim / Objective of sales training:
 Areas to be trained:
 Training on market place
 Training on competitors
 Training on handling the competition
 Training on communication
 Training on negotiation
 Training methods:
 Lectures
 Personal conferences
 Demonstrations
 Role playing
 Gaming – Simulation / Role play
 On the job training

3. 1-3
SALES COMPENSATION - Modes
 Salary
 Straight commission
 Target commission
 Salary Plus Commission
 Bonus, Profit sharing and Fringe benefits
 Reimbursement of expenses – Travel, Meals, Lodging,
Entertainment and Miscellaneous

4. 1-4
SALES COMPENSATION PLAN - Steps
 Define the sales job
 Look to the firm’s payment scales to other staff
 Use grading or classification of jobs so that jobs may
be compared
 Put in place a suitable job evaluation method to look in
to relative importance of the job and decide the
compensation
 Fine how much other firms are paying for similar job
 Give importance to local factors like place of work,
distances etc.

5. 1-5
SALES CONTROL - Steps
 Need of sales control:
 Sales control process:
 Establishing standards for performance evaluation
 Identifying and evaluating reasons for performance
under or above the laid down standards
 To adopt measures to correct deficiencies leading to
the lowest performance and evaluate methods for
further improvement.

6. 1-6
SALES CONTROL - Principles
 Pragmatic
 Transparent
 Realistic
 Positive in spirit
 Informative
 Participative
 Objective
 Flexible
 Specific
 Cost effective
 It should be a means not an end

7. SALES CONTROL – Performance standards
1-7
 Quantitative standards:
 Quotas
 Selling expense ratio
 Gross margin ratio
 Territorial market share
 Sales coverage effective index
 Call frequency ratio
 Calls per day
 Average cost per call
 Average order size
 Non selling activities
 Multiple quantitative performance standards

8. SALES CONTROL – Performance standards
1-8
 Qualitative standards:
A.Job factors:
 Product knowledge
 Customer knowledge
 Relationship with customers
B. Personal factors:
 Punctuality
 General attitude
 Dress & Appearance
 Cooperation
 Diligence
 Accuracy
 Reliability
 Adaptability