Exam (elaborations)
Chapter 9. Sales Force Compensation Questions with Correct Answers 2024
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Chapter 9. Sales Force Compensation
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Chapter 9. Sales Force CompensationA good sales compensation plan should.. (company perspective) - answer-Motivate SP
-Correlate efforts and results w rewards
-Control SP activities
-Ensure proper treatment of customers
-Attract and keep competent SP
-Be economical yet competitive
-Be flexible yet stable
-Provide secure and incentive income
-Be simple
-Be fair
-Provide choice
Sales compensation plan (SP perspective) - answer- a secure income and an incentive
income
-simplicity, SP should be able to golfer out what their income will be
-fairness,
-choice, SP want to have choices on how they are compensated
Steps in designing a sales compensation - answer1. Review job descriptions
2. Identify plans objectives
3. Establish level of compensation
4. Develop the method of compensation
5. Divide on indirect monetary compensation
6. Pretest and install plan
Level of Compensation - answerthe average earnings of the salespeople over a given
period.
the level is more important than the method. People usually are more interested in how
much they've earned than in how they earned it
Method of Compensation - answer-relates to how the reps will be paid.
Building blocks for a sales compensation plan - answerSecurity - Salary
Incentives - Commission, bonus, profit sharing
Benefits - paid vacation, insurance, moving expenses, pension, profit sharing, others
Expenses - travel, lodging, company car, entertainment, others
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