A company will most likely use a straight salary plan for compensating its sales force when:
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journal article Journal of Marketing Vol. 40, No. 2 (Apr., 1976) , pp. 11-16 (6 pages) Published By: Sage Publications, Inc. https://doi.org/10.2307/1251001 https://www.jstor.org/stable/1251001 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $41.50 - Download now and later Journal Information The Journal of Marketing (JM) develops and disseminates knowledge about real-world marketing questions relevant to scholars, educators, managers, consumers, policy makers and other societal stakeholders. It is the premier outlet for substantive research in marketing. Since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline? Publisher Information Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com Rights & Usage This item is part of a JSTOR Collection. Abstract Dating back more than a century, companies have used incentives such as commissions and bonuses to motivate and direct the activities of salespeople. Today, sales force incentives comprise a large portion of sales force pay (approximately 40 percent on average for U.S. companies), almost all of which is linked to each individual salesperson's short-term performance using metrics such as quarterly sales. Yet as selling becomes increasingly complex, motivating the right sales force behaviors using these traditional large short-term individual (LSTI) incentives becomes more challenging. Based on observation of various sales organizations, we suggest two propositions about the use of LSTI incentives in sales forces today. First, these incentives can create undesired consequences, including organizationally unproductive short-term focus among salespeople that leads to a counterproductive culture and hurts company performance. Second, other sales force effectiveness (SFE) drivers are frequently more powerful than incentives for setting the right tone for the sales force, affecting sales force behaviors, and enhancing performance—especially when products and markets are complex. These propositions suggest that sales leaders should break their addiction to sales force incentives and develop a more balanced approach to motivating and controlling sales force effort using other SFE drivers in addition to LSTI incentives. By organizing a research agenda around a holistic Sales Force System framework, researchers can provide insights on the appropriate role for incentives, thereby helping sales leaders create and maintain more effective sales organizations. Journal Information As the only scholarly research-based journal in its field, JPSSM seeks to advance both the theory and practice of personal selling and sales management. It provides a forum for the exchange of the latest ideas and findings among educators, researchers, sales executives, trainers, and students. For more than 30 years JPSSM has offered its readers high-quality research and innovative conceptual work that spans an impressive array of topics-motivation, performance, evaluation, team selling, national account management, and more. In addition to feature articles by leaders in the field, the journal offers a widely used selling and sales management abstracts section, drawn from other top marketing journals. Emerging topics are addressed through periodic special issues devoted to such cutting-edge issues as CRM and sales force ethics. Publisher Information Building on two centuries' experience, Taylor & Francis has grown rapidlyover the last two decades to become a leading international academic publisher.The Group publishes over 800 journals and over 1,800 new books each year, coveringa wide variety of subject areas and incorporating the journal imprints of Routledge,Carfax, Spon Press, Psychology Press, Martin Dunitz, and Taylor & Francis.Taylor & Francis is fully committed to the publication and dissemination of scholarly information of the highest quality, and today this remains the primary goal. Rights & Usage
This item is part of a JSTOR Collection. What method of payment is most often used to compensate salespeople?Salary plus commission sales compensation plans are possibly the most common plans used today. They're structured in a way that sales people receive a lower base salary along with commission pay that makes up the majority of the total compensation.
What is the main disadvantage to salary plans for salespeople?Cons: Straight salary might not be tempting to top-performing sales reps who want to make as much money as they can through hard work and dedication. It tends to only attract less experienced staff who want a “safe” pay structure. It could reduce retention and increase turnover.
What are the four elements of a compensation plan for salespeople?Here are the four essential components to consider when designing your plan.. 1) Salary. ... . 2) Commission. ... . 3) Bonuses. ... . 4) Other Incentives.. Which characteristics apply to a company's sales force?Effective sales representatives are motivated to sell. This is due to many factors like commission incentives; respect and recognition at the office; loyalty to the company they represent; and perhaps most importantly, a sincere belief they are providing their clients with a product that will benefit them in some way.
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