Explain three types of financial compensation and rewards given to salespeople. Give one example of a nonfinancial reward.
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A salary is a fixed sum of money paid at regular intervals. Most firms that pay a salary also offer incentives or incentive pay to encourage better performance. Incentives are generally commissions tied to sales volume or profitability, or bonuses for meeting or exceeding specific performance targets (for example, meeting quotas for a particular product). Such incentives direct salespeople's efforts toward specific strategic objectives during the year, as well as offer additional rewards for top performers. A commission is payment based on short-term results, usually a salesperson's dollar or unit sales volume. Since there is a direct link between sales volume and the amount of commission received, commission payments are useful for increasing salespeople's sales efforts. Exhibit 14.14 summarizes the components and objectives of financial compensation plans.
In addition to financial compensation, sales management (and management across the company) incorporates a range of nonfinancial incentives. Most sales managers consider promotional opportunities second only to financial incentives as effective sales force motivators.
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Answer the following statement true (T) or false (F)
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Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)
Explain the different types of value
What will be an ideal response?