The Islamia University of Bahawalpur

Institute of Business Management and Administrative Sciences

Sales Management

Assignment topic:

Compensation Plans to Solve Sales Problems

Submitted to:

Dr. Shoaib Imtiaz

Submitted by:

Saqib Imran

Semester:

BBA 6th M1

Roll no:

BBA18S34

Baghdad Ul Jadeed Campus Bahawalpur

 Compensation Plans to Solve Sales Problems
Problem 1:
Salespeople are not spending adequate time to develop new customers

Solution: Some suggestions of compensation plan to solve this problem are given below;
 First of all, rearrange their time spending pattern to give proper time for new customers
 Maybe there is a training flaw in this, so provide training to generate new customers
 Motivating salesperson towards new customers is also helpful
 Making new customers should be included in the SOP (standard operating procedure) of
all salespersons
 Allocate some part of existing salary of salespersons to bring new customers
 Deduct salary from the salespersons those neglecting to bring new customers for a long
time
 Give some compensation or increments to generate new customers every month
 Keep an eye on salespersons and bring a check and balance on salespersons
 Start some campaigns to attract and interact with new customers

Problem 2:
Salespeople are selling profitable products less than non-profitable and easy to-sell
products to achieve their sales volume quotas
Solution: Compensation plans are given below;
 Not just focusing on overall targets of volume quotas, should moves towards the brand
wise targets (target divided among separate brands). So salesperson focused on all brands
and products.
 Arise a concept of fixed + variable salary. So, the variable salary generated from all
products sell volume (Volume equally distributed in all brands or more return on
profitable/ hard to sell products).
 Range selling is also essential as it is implemented in FMCG business. It’s a way to sell a
wide range of products and services. So, no brand/product face shorting in volume.
 Training, mentoring and motivating is also seeming to be impactful.
 Using system software that generate repots on the sales of all product’s sale volume
separately. So, no one missed some products/brands during selling activities.
 Just an example from Unilever; Unilever came up with Sales IQ system (which focus on
selling all the brands by brand wise targets and range selling)
Sales IQ System
1.Ever Build Brands 2.Red Line Brands 3.Widthpack Brands
 Focus on new products(SKU) and more increments on them.
 Check-ups routines and market visits of managers are very helpful.