1. Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta7-1 Salesmans Compensation and Motivation Basics of Sales Management Ch-7 Block: I Chapter 7 Salesmans Compensation and Motivation

2. Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta7-2 Salesmans Compensation and Motivation Basics of Sales Management Ch-7 Block: I Introduction Salesmans job involves a lot of hard work; he has to face many disappointments and still continue to do his job. So salesmen need a lot of motivation to do their normal job also. The salesmans compensation is given in the following ways: Salary only (plus travelling expense, allowances for food and lodging). Salary + commission (plus travelling expenses and allowances of food and lodging). Commission only (plus travelling expenses and allowance for food and lodge). Commission only.

3. Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta7-3 Salesmans Compensation and Motivation Basics of Sales Management Ch-7 Block: I Motivation in Social Needs Level This is an easier level to handle. One has to be very cooperative and should mix with salesmen whenever possible and show solidarity with them. Be very strict about discipline and work standards but rest of the time be friendly and supportive. Keep giving tips for improvement in work standard and team building. Social functions and picnics are of help. If properly handled, you can have a highly motivated high standard winning team at hand.

4. Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta7-4 Salesmans Compensation and Motivation Basics of Sales Management Ch-7 Block: I Cont…. Motivation in Esteem Needs Level In this level, motivation comes from the urge to prove ones superiority amongst peers, so the motivation becomes easier. A sales manager should use peer rivalry to his benefit without actually disturbing the team spirit. Sales contests prove very useful for the same.

5. Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta7-5 Salesmans Compensation and Motivation Basics of Sales Management Ch-7 Block: I Cont…. Sales Contests One can devise different types of sales contests but their objective is always one and the sameachieve higher sales and motivate the salesmen. Following types of sales contests are common: Daily productivity contests Monthly productivity contests Sales during a particular month contest Sales during promotional period contest Quarterly sales growth contest Half-yearly sales growth contest Annual sales target contest Growth in retail universe contest Level of distribution, width and depth contest Reduction in selling expenditure contest.

6. Copyright © 2010, S L Gupta Excel Books Sales and Distribution Management Text & Cases ( 2 nd Edition) S L Gupta7-6 Salesmans Compensation and Motivation Basics of Sales Management Ch-7 Block: I Terms to Remember Daily Allowance:Allowance paid to salesperson on days actually worked basis, to take care of his conveyance, tea/coffee, out of pocket expenses. Ex. HQ Allowance:Allowance paid to the salesperson when he travels out of his HQ during the day but is back by evening. Night Away Allowance:Allowance paid to salesperson when he travels out of his HQ and is required to stay away from HQ. This allowance takes care of salespersons lodging, boarding and conveyance requirements. Entertainment Allowance:Some salespersons are required to entertain their customers. Many companies pay entertainment allowance to take care of this need.