Page 89 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 4: Sales Meetings, Sales Contests and Sales Budget

2. Merchandise Notes
3. Travel
4. Special Honours and Privileges

Cash

The Policy of giving cash prizes is very rare and is given in special cases. Cash prizes are given
in special needs as given by the Maslow’s hierarchy. It only fulfils the physiological, security
needs. Once the basic needs are fulfilled human beings try to achieve higher order needs which
cannot be fulfilled by cash alone. Thus this is a weak form of giving prizes. It should be substituted
or linked with other types as well. Alternatively the cash prize must be substantiated to the tune
of 20-25% of the sales persons’ annual income.
Merchandise

It is a superior form than cash. Variety of prizes can be given under this method. Sometimes the
trophies are given which are a constant reminder of the past performance and aspirations for the
achievement. While giving merchandise the salesmen and their families can be considered to
raise the moral of the workers. Merchandise is lasting and remains with the salesperson and
inspires him throughout his career. This also brings good memories of the good work done by
the salesmen.

Travel

Travel awards are very popular, extremely desirable and promotable. The salesmen are sent to
luxury resorts and exotic places both in and outside of the country. The travel also provides trips
for the winner spouses and their families, which motivates them greatly. An exotic trip abroad
also has a lot of bragging value. Their travel trips can also be utilised for education and exchange
of ideas from other sales persons. The travel prizes may also enable participation to various
fairs and exhibitions that are organised abroad.

Special Honours and Privileges

Special honour can be conferred on salesmen for exemplary performance. These may include
membership to prestigious clubs in the city. These types of awards strengthen the sales person’s
feelings of belongingness and social relations need. It also appeals to their esteem and self-
actualisation needs. Special honour can also be conferred on salesmen by giving certificates and
honours in the meeting of the company. Mentioning their names and their achievements in the
monitoring their names and their achievements in the monthly/weekly bulletins of the company
can also highlight the performance of the salesmen. To use sales contests effectively sales manager
must consider the following points in particular.
1. The sales contests must be simple. It must be understandable and should not be complicated
to understand.
2. The time of the contests must be specific. The target to be achieved must be given clearly
for a particular period of time. Their goals must be clear to the salesmen and dealers.
3. The goals must be set in such a manner that they are attainable and not impossible to
achieve.

S - Specific.

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