MKT 441 Final

Chapters 9,10,11,16

Who has a direct bearing on the successful implementation of a marketing plan, compensation plan or strategic marketing planning?

The compensation plan

T/F Management should coordinate its sales compensation plans with the company’s goals

True

T/F many companies do not differentiate the top performers enough from the average performers

True

T/F every pay plan should provide a regular income

True

What are the four generalizations of a pay plan?

1. Conflicts in the objectives

2. Won’t fit all

3. Important to achieve external parity in salaries

4. Seek to listen to suggestions about compensation plan

What factors should a compensation plan be based on?

what salespeople can control, and what a company can measure

What are the 3 basic types of compensation plans?

straight salary, straight commission, combination/hybrid

Those with a salary have lower turnover rates compared to commission, are easily directed by management, are less concerned with immediate sales volume

True

When is a straight salary best?

management wants a well-balanced sales job and can supervise and motivate the reps properly

What two factors is commission plans based on?

base and rate

When is a straight commission best?

weak financial position, very little missionary work is needed, no need for long-term relationships

A regressive rate of sales commission is consistent with the idea that:

 Reorders come frequently and inexpensively, but the initial order is hard to get.

A sales compensation plan calling for a straight commission based on net sales is least likely to:

stimulate missionary selling activities

As one of its goals, a good plan for paying salespeople should:

help management to direct the activities of the sales force

A missionary salesperson should be paid:

straight salary

A good plan for compensating a sales force should:

Strive to correlate a sales representative's rewards with his or her results and efforts.

Which of the following is a trend in sales force compensation today?

Incentive pay for performance is a bigger component of compensation

An advantage of a straight commission plan for compensating sales reps is that it:

provides much freedom of operation of the salespeople

T/F Leadership are the activities performed by sales managers to influence sales people to achieve goals that contribute to the success of the entire organization?

True

T/F Leadership effectiveness is not based on a combination of personal characteristics, managerial skills and behaviors, and the situation?

False

What is transactional leadership?

verbal feedback in the form of rewards and punishment. Short-term vision

What is transformational leadership?

transforms the basic values, beliefs, and attitudes of followers such that they are willing to perform at levels above and beyond your expecations

What are indirect supervisory Aids?

compensation plans, territories, quotas, expense accounts, sales analysis procedures

What are the outcomes of effective leadership?

well-trained, trust, citizenship, better performance, sales force morale

When feasible, the best leadership tool or technique is typically:

Personal contact

Job satisfaction among all reps in a sales force:

is a necessary, but not sufficient condition for group morale

The amount and type of leadership received by salespeople:

should vary over time, based on the stability of the business environment

The purpose of a call plan includes all but:

 The need for a report of the rep's itinerary for a specified time period.

The need to develop the sales rep’s written communciation skills

The need to ensure proper customer routing

To determine if the various classes of customers are met in the right ratio

To provide in-depth information in customer problems and needs as well as in competitive activity

The need to develop the sales rep’s written communication skills

For the newly hired, inexperienced sales rep, the sales manager must first engage in a heavy dose of:

transactional leadership