Sales Management: A Research on performance improvement Case Solution
Sales management is the coordination of the resources and people that achieve the goals effectively. These goals are long-term goals that focus on increasing the sales volume, contribute to develop the sales pipeline, as well as contributing to focus on the growing revenues.
Furthermore, in order to achieve the objectives, sales executives, and sales managers have responsibilities such as forecasting the sales and demand, establishing the objectives, budgeting, recruitment, training, compensation, and evaluation of the sales performance.(APTTUS, 2016)
Importance of the Sales management
Sales managers are have the key role of meeting the organizational goals so as to achieve targets, therefore in order to fulfil the requirements, the sales management team does not only include the salesperson, but it also includes managing them effectively, and efficiently. However, overall, the focus is to increase the revenue and productivity.(APTTUS, 2016)
On the other hand, the increasing complexity in the market has challenged the managers to set the sub goals of the goals, and breaking them into the pieces as well as to identify the skills, tactics, and tools are there to manage the sales. However, we will discuss these skills, tactics, and tools throughout this research, and their possible pros and cons, their applications, and complications as well.
Similarly, the sales management is not only about managing the employees, but also motivating them by giving them the rewards financially or non-financially. Moreover, we will research, and analyze the data in-depth to identify the most preferable options that could be adopted by the companies in order to increase the productivity in the organization.
Cash reward versus Non-Cash rewards
Cash has not been only motivator for the people in their daily work life, if we talk generally. However, two words such as “Thank-You” could do what money might not be able to do at some places. The researches have showed that human actions are driven by their emotions that motivate them towards the goals, and objective, even financial reward might not work sometimes.
On the other hand, a research was conducted to observe the human behavior, and to identify the driving forces behind their motivations. Similarly, during the research when it was asked by respondents what could be driving force for them to increase their speed, and accuracy, 38.6% staff members of the University of Chicago responded that non-monetary reward would be the driving force for them, even they agreed on what words such as “Thank-You” could do.(Houlihan, 2013)
Thus, the question arises here, as to how this application is applied in the field of sales and marketing staff. Moreover, the money or monetary incentives are less meaningful than non-monetary, because cash incentives can lack meaning, or fail to satisfy the sales team to drive towards the goals, and targets.Thus, money is not only way, there are some other non-financial rewards to boost the performance of the team.(Burdett, 2013)
Thus, the non-monetary incentive is best option to adopt to motivate the team, i.e. providing dinner packages, tours, PC tablets, and other tangible gifts, or other items that might help them to improve the professionalism. Hence the non-monetary incentives are most preferred option.(Thoreson, 2014)
Furthermore, we continue with our reasoning and supporting the non-monetary or non-financial rewards could drive the performance of the sales peoples. Moreover, the market has become very complicated to close deals, and improve the efficiency of the salesperson.
On other hand, a study conducted by the Incentive research programs, that compared the sales of the sales persons employed by the non-incentive company with the company that was providing non-cash incentives. The research concluded that average sales done by a salesperson belonging to the incentive providing company was more than their counterparts sales persons belonging to non-incentive providing company.(GC Incentives, 2014)
Compensations Financial or Non-Financial
The compensations are paid in order to recognize the contribution of the employees in the organization. However, contribution can be divided into financial and non-financial compensation, thus, in order to understand compensation model see figure 1.
This model gives a clear view of how compensation is divided in terms of financial and non-financial. In the financial section, there is indirect compensation that includes providing medical care, insurance, retirement plans, workers’ compensation, which includes educational services, furthermore, the paid absences as well.
Similarly, the compensation of indirect rewards might motivate the sales force to achieve the targets, goals. However, the bonuses, would likely to enhance the productivity across all segments, similarly over achievement of the target due to the commission to the salespeople would help to sustain the high productivity of the best performers, even after attaining their targeted goals......................................................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.