MK 420-2B Sales Management Final Exam UAB
Non-Compensation Rewards
Examples of non-monetary compensation include benefits, flex-time, time off, free or discounted parking, gym membership discounts, retirement matching, mentoring programs, tuition assistance, and childcare. A benefits plan is designed to address a specific need and is often provided in a non-cash form.
Different approaches for evaluating sales organization effectiveness (ex: sales analysis, cost analysis, profitability, income statement), know which ones are the best direct approaches
sales analysis and cost analysis
reward system management
selection and administration of organizational rewards to encourage salespeople to achieve organizational objectives
360 feedback process
A 360-degree feedback is a process where a given reviewee gets inputs on her performance (or other criteria such as behaviors, competencies and results achieved) from a number of different people that bear different working relationships with the reviewee (for example, they can be direct reports, manager, peers
What criteria (areas) should be incorporated for a comprehensive evaluation of salesperson performance
Although the specific criteria depend on the characteristics of a particular selling situation, comprehensive evaluations of salesperson performance require that four dimensions be addressed: behavioral, professional development, results, and profitability criteria.
Indirect/shared costs (as it relates to profitability)
An indirect cost is any cost not directly identified with a single, final cost objective, but identified with two or more final cost objectives
Budgeting (how sales managers should budget, what goals should be for budgeting each expense category)
Budgeting requires managers to plan for both revenues and expenses. ... Management will work with each department to communicate goals and build a budget ...
Evaluating performance (know what you should be focused on when evaluating performance to determine compensation/special rewards)
Develop an evaluation form. Identify performance measures. Set guidelines for feedback. Create disciplinary and termination procedures. Set an evaluation schedule.
Know about different types of ways to be motivated (internal/external, intrinsic/extrinsic), given examples of these
Extrinsic Motivation Participating in a sport to win awards Cleaning your room to avoid being reprimanded by your parents Competing in a contest to win a scholarship Studying because you want to get a good grade Intrinsic Motivation Participating in a sport because you find the activity enjoyable Cleaning your room because you like tidying up Solving a word puzzle because you find the challenge fun and exciting Studying a subject you find fascinating
Know about what some of the most popular incentives for salespeople are
Gift Cards. These are probably the most common non-cash incentives. ... Food Delivery Credit. ... Subscription to a Streaming Service. ... Tech Gadgets. ... Wine Club Membership. ... Subscription Boxes. ... A Gym Membership. ... Learning Opportunities.
Different ways salespeople can increase profitability
Make pricing strategy an evolving priority. ... Become a master of up-selling. ... Do unforgettable follow-up. ... Let someone else do the selling. ... Keep creating irresistible, cohesive offerings. ... Deepen your relationship with your audience. ... Make your product visible.
Know about different things that encompass compensation/rewards
Manager-to-Peer Recognition Peer-to-Peer Recognition Performance Management Recognition Tracking Rewards Catalog Rewards Points Social Recognition
Areas of Motivation in sales as a manager, what motivation is composed of, definitions of things that compose motivation
Motivation = Intensity + direction + persistence of effort
Know details about profitability analysis (different types, will be given situation and identify which one is best)
Profitability analysis is part of enterprise resource planning (ERP) and helps business leaders to identify ways to optimize profitability as it relates to various projects, plans, or products. It is the process of systematically analyzing profits derived from the various revenue streams of the business.
Overall goal of motivation tasks, know when it is complete/incomplete based on salespersons efforts (ex: are they motivating toward a certain activity to improve the bottom line of a company?)
S - Specific M - Measurable A - Achievable/Attainable R - Results-Oriented/Realistic/Relevant T - Time-Bound
Incentives = Compensation and monetary rewards
Varicent ICM can help you remove friction from the sales compensation process, improve incentive calculation, adapt your sales strategy to shifting business priorities, and enable your compensation admins
Know how often sales organization generally evaluate salesperson performance
annually
Behavior based perspectives (for evaluating/controlling salesperson performance) + outcome based perspectives (will be given examples of things that may be true or false about them)
incorporates complex and often subjective assessments of salesperson characteristics
Know about sales organization effectiveness and effectiveness evaluations (definitions and what they result in)
overall evaluation of how well each salesperson performed
Organization audit, (Different major areas covered by sales organization audit)
what is a sales organization audit? a comprehensive, systematic, diagnostic, and prescriptive tool used to assess the adequacy of a firm's sales management
