1. DESIGNING COMPENSATION AND INCENTIVE PROGRAMS
Some Major Compensation & Incentives Issues
Procedures for Designing a Compensation & Incentive Program
Assessing the Firm’s Situation and Sales Objectives
Determining which Aspects of Job Performance to Reward
Deciding on the most Appropriate Mix of Compensation
Financial Incentives: Choosing the Most Effective Form of Financial Compensation
Types of Compensations Plans
Sales Contests
Non-financial Rewards
The Reimbursement of Selling Expenses

2. Some Major Compensation & Incentive Issues
Which compensation method is most appropriate?
How much incentives for a salesperson from the whole package?
What is the appropriate mix of financial and non-financial incentives for motivating the sales force?

3. Procedures for Designing a Compensation and Incentive Program
Many complex issues while designing compensation plan
Actual versus expected compensation
Changing environment and expectation by firms also changes expectations
Normally compensation plans are reviewed annually

4. Assessing the Firm’s Situation and Sales Objectives
Job activities and performance indicators
Focal activities on job
Performance evaluation

5. Basic components of an effective compensation program
Eligibility
Total target compensation
Salary / Incentive ratio
Incentive pay leverage
Performance range
Incentive formula
Sales crediting
Performance and payout periods

6. Determining which Aspects of Job Performance to Reward

7. Deciding on the Most Appropriate Mix of Compensation
Dangers of paying too much
Dangers of paying too little

8. Financial Incentives: Choosing the most effective Form of Financial Compensation

9. Types of Compensation Plans
Straight salary
Advantages
Limitations
Straight Commission
Combination Plans
Other Issues in designing combination plans
Relative proportion of incentive pay
Incentive ceilings
When is a sale a sale?
Team versus individual incentives
When should the sales rep receive incentive payments?
Compensation of direct salespeople versus manufacturer’s representatives
A summary overview of financial compensation plans

10. Characteristics of Compensation Methods for Sales Force

11. Sales Contests Contest objectives Contest themes
Probability of winning
Types of rewards
Promotion and follow – through
Criticism of sales contests

12. Non – financial Rewards
Recognition programs

13. The Reimbursement of Selling Expenses
Direct reimbursement plans
Limited reimbursement plans
No reimbursement plans

14. Sales Expenses: For what do companies pay?