Sales Management II

- Compensate reps for work done

- Motivate reps to work productively

- Control(guide) reps' work efforts

- Sales Force Sizing

- Sales Force Deployment

- Sales Force Planning

- Sales Territory Alignment

- Sales Force Incentive Plan Desin

- Sales Goal-setting

Reconciliation of the different objectives of the firm ("principal") and the salesperson ("agent")

For example, 

- Firm's goal is to maximize profits

- Rep's goal ist to maximize income

Why? Because the allocation of the rep's effort which meets one objective may not satisfy the other. 

Obere Reihe:

- Effort = Success = Compensation (Prozess)

- Profit maximizing control of salesforce effort (Pfeife)

- Incentives for proper treatment of customers (Schatztruhe)

- Attract, keep and develop competent salespeople (Graduating person)

- Economical to administer (Angebot-Nachfrage-Kurve)

Untere Reihe:

- Steady income but also incentives (Graph income + incentives)

- Stable system but also flexible enoug to adapt to varied market conditions (Yoga market)

- Simplicity and easy of understanding (Glühbirne)

- Motivation for highest performance at given renumeration level (Treppe)

- Fairness to provie equal income for equal performance (gleiches Geld)

- New Sales Force Creation

- Sales Force Merger

- Sales force restructuring

- Inequity of potential

- Intensified Competition

- Management Directive

- New Product Launch

- Refocus of Sales / Business Strategy

- Change in Measurement Source

- Maturing Product Lines

- Consolidation of Customer Base

- Bonus (fixed amount)

- Commissions (Function of output measure)

- Stock Options

- Contests 

- Commissions depending on outcome can be strong motivators

- the firm can direct its sales force towards certain activities

- a firm can transfer a part of the selling risk to the salesperson