Page 55 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sukhpreet Kaur, Lovely Professional University Unit 3: Motivating and Compensating the Sales Force

Unit 3: Motivating and Compensating the Sales Force Notes

CONTENTS
Objectives
Introduction

3.1 Motivating the Sales Force
3.1.1 Need for Motivation
3.1.2 Steps in Motivation

3.1.3 Maslow's Hierarchy of Needs
3.1.4 Herzberg's Two Factor Theory
3.1.5 Financial Motivation Techniques
3.1.6 Non-financial Motivation Techniques
3.1.7 Financial Incentives

3.2 Compensating the Sales Force
3.2.1 Requirements of a Good Compensation Plan
3.2.2 Designing a Compensation Package

3.2.3 Types of Compensation Plans
3.2.4 Factors Influencing Compensation Scheme
3.2.5 Use of Bonus
3.2.6 Fringe Benefits
3.3 Summary

3.4 Keywords
3.5 Self Assessment
3.6 Review Questions

3.7 Further Readings
Objectives

After studying this unit, you will be able to:
Explain how to motivate the sales force
Know how sales force is compensated

Introduction

Motivation of the salesman is important because the salesman has a monotonous job to perform
and he gets fed up very soon and wants a change. Through motivation the salesman is stimulated
to action, so that he gets interested in the job and performs his duties to the best of his capability.
“The primary purpose of motivation is to aid salesmen to satisfy their goals by stimulating

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