Page 79 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 3: Motivating and Compensating the Sales Force

Self-Actualization Needs: Self-fulfillment and achievement needs Notes
Straight Salary Plan: Sales persons receive fixed sums at regular intervals

3.5 Self Assessment

Fill in the blanks:
1. Desire to own a big house to show off status relates to…………………needs.

2. An untimely promotion due to consistent performance can act as a…………………..
3. Incentives given to salesmen to push up sales of a non-performing product is known
as………………………..

4. Need for adventure is a part of ……………………. needs.
5. According to Herzberg’s Theory, relationship between a salesman and supervisor is a
……………… factor.

6. …………………..method of evaluating compensation plan, tries to reduce errors to the
minimum possible level.
7. In your organisation, if you are asked to choose from an array of benefits that suits you
most, your company is following …………….approach.
8. ……………….is the most secure type of compensation from a salesman point of view.
9. A…………………plan brings out the maximum productivity out of a salesman.

10. Educational benefits and paid vacation are …………… offered by sales organisations.

3.6 Review Questions

1. “The primary purpose of motivation is to aid salesmen to satisfy their goals by stimulating
them to improve the efficiency of their work.” Comment.

2. “Motivation is a continuous process that carries on as the expectation of the sales person
keep changing from time to time”. Discuss.
3. Suppose you are sales manager of a pharmaceutical company. What measures will you
take to ensure that your salesmen are motivated?
4. Is Maslow’s theory relevant in today’s world? Compare and contrast between Maslow’s
and Herzberg’s theories.
5. “Compensation plans are aids to, rather than substitutes for, effective motivation”. Do
you agree? Explain.
6. Suppose you are the Sales Head of a direct marketing cosmetics company. In order to
make a sound compensation plan for your company, what all things you need to keep in
mind?
7. Compare and contrast the different compensation plans. Which one is most attractive
according to you?

8. “As life progresses, needs also progress”. Explain this statement in relation to compensation.
9. How is the concept of fringe benefits related to Maslow’s theory? Suppose you have to
make a bonus and fringe benefit plan for two categories of employees- 1 year in service
and 5 years in service. Make appropriate plans for both.

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