Question

What are the sales objectives for the new Sales Representative? 8-2. What role will the compensation design play in motivating the new Sales Representative? 8-3. What kind of sales incentive plan do you recommend? Why?

Answer 1

The sales objectives for the new sales representative are as below:

a. Find new customers for sales

b. Retain old customers

c. Achieve the product's sales target

d. Achieve profitability target

e. Provide rolling sales forecast

F. Ensure 100% availability of the products.

The role of compensation design is very important in motivating the sales employees to go the extra mile and put his genuine effort to meet the sales target. The compensation of the new salesman must be competitive enough and there should good amount of performance bonus which they will get on the achievement of the target need to be given. The sales compensation should be given along with a monthly salary only because the rewards must not be delayed. The sales incentive plan should be in cash and there should be various slabs that indicate the incentive to be given upon a certain level of target achievement as well as achievement of more than 100% of the target. The frequency of the payment must be as shorter as possible because if we delay the incentives then the impact which it would have on the motivation of the sales employee will go down. Therefore reward should be given in small amounts but on a very short frequency.