Page 146 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes Factor Comparison Method: This method resembles the point system but is more complex. It
utilises a scheme of ranking and cross comparisons to minimise error from faulty judgement.
Instrumentality: This reflects the person’s perception of the relationship between performance
and reward, for e.g., it reflects the extent to which a person believes that higher performance
will lead to promotion.

Paid Leaves: Includes, sick leave, maternity leave and are enjoyed by confirmed salesman who
have worked for a considerable period of time.
Paid Vacations: These are provided to sales persons with a long standing, who have served the
company for a long period of time.
Point System: It involves defining factors common to most jobs. The specific factors generally
include mental and physical skills, responsibility, supervision received and given, personality
requirements and minimum education required.
Retirement Plans: Many companies contribute to pension plan for its employees. The sales
person also contribute a part of their income through payroll deductions.

9.16 Review Questions

1. Why is motivation of sales force more important than employees in any other sphere of
activity?
2. What is the importance of non-financial incentives in motivating the sales person?
3. How does Maslow's hierarchy helps in motivating the sales force?

4. Describe Adam's Inequity theory. How does it motivate and demotivate sales force?
5. What are the main elements of a compensation programme?
6. Describe the requirements of a good compensation plan.
7. What are the various types of compensation plans and their advantages and disadvantages?
8. What is the importance of fringe benefits?

9. Describe the importance of fringe benefits elements with reference to any organisation.
10. Explain the Likert's Sales Management Theory.

Answers: Self Assessment

1. Motivation 2. Salesman
3. Manager's 4. Persuasion

5. Sales Contest 6. Bonus
7. True 8. False
9. False 10. True
11. True 12. (b)

13. (a) 14. (d)
15. (a)

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