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 COMPENSATING LEADING  AND ,[object Object],CONTROLING SALES FORCE ,[object Object]
Compensation Plans,[object Object],Compensation plans for the sales force are designed to achieve several objectives. Some of these are:,[object Object], 	To assist the company in meeting its sales projections, ,[object Object], 	To bring the earnings of the sales force to desired levels,,[object Object], 	To reward individual salespersons in direct proportion to      their efforts and 	performance.,[object Object]
Sales people look for…,[object Object],1.	Adequate income for adequate    performance.,[object Object],2.	Incentives for special achievement.,[object Object],3.	A base of fixed-income for security purposes.,[object Object],4.Opportunity for advancement, promotion.,[object Object],5.Equitable treatment to all sales people; pay based on performance —  no favoritism or exploitation,[object Object]
6.A sense of security because of the feeling that he is respected and regarded as a human being who is important to the company,[object Object],7.Simplicity — easy to understand.,[object Object]
Three Types of Compensation Plans,[object Object],Straight salary plan,[object Object],Sales person compensation method in which only a fixed salary (but no commission) is paid. The amount received by a salesperson is a function of time worked and not of performance as reflected in sales volume. This method is used where (1) the firm is aiming at long term presence in the market instead short term sales volume, (2)the performance of each salesperson is difficult to measure.,[object Object]
Straight Commission,[object Object],Adopted by performance-oriented firms that pay salesperson for their achievements,[object Object],Each person is paid a percentage of their total sales,[object Object]
Combination Pay Plan,[object Object],[object Object]
May appear in many forms:Salary, commission, individual and group bonuses,[object Object],[object Object],[object Object]
 Summary,[object Object],Compensation plan helps attract and maintain quality sales force,[object Object],Compensation is culturally influenced,[object Object],Sales contests can provide short term motivation,[object Object],Must be properly planned and managed,[object Object],Expense plans important,[object Object],Cover legitimate expenses, but always remember that Sales – Expenses = Profits,[object Object],Rules for sales force compensation, contests, and expenses must be simple and unambiguous,[object Object]

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Compensation plans by romanchal

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