Compensation Plan for Sales Team Essay Example | Topics and Well Written Essays - 750 words

Compensation Plan for Sales Team - Essay Example osal, mild assumptions are made regarding the company’s objectives where the strategic function of the sales tram can be patterned with, then the compensation scheme is made in order to back up those strategies. Personal selling (or sales) is just one of the functions of marketing communications which helps a company carry on a strategy in order to fulfill a certain goal. In marketing’s case, the goal is market share in order to support a larger goal of the company such as increase in shareholders’ wealth. Since personal selling in InterClean, Inc. is assumed to be a primary function of marketing communications to reach the marketing objective, we have to look first at the company as a whole. Another assumption derived from the instruction, since the sales team is new, is that the company is new in the industry. Given this, we can assume that the company’s marketing strategy is to build market share, being a new player in the industry. Building market share as the marketing strategy calls for some personal selling/sales function strategies which will be of support it—this includes building sales volume. The personal selling function then breaks the objective down into smaller and more specific sets depending on the nature of the job which will handle it. In order to meet these objectives, one factor which is designed to motivate the team is to give rewards in the form of the compensation package. In this paper, we present two kinds of pay that constitute the whole compensation package: fixed pay and variable pay. The whole compensation package includes three components: the base pay for the fixed pay, and the bonus pay, like commissions, and long term compensation for the variable pay. We will see the difference in proportions of these for the compensation package for each job design in the later discussion. Pay structures differ from each job to another as pay as a form of reward aims to reinforce behaviors that are essential to meet the objectives