Marketing - How Salespeople are Compensated

The video discusses personal selling, highlighting its importance and cost. It explores different compensation methods for salespeople, such as salary and commission, and suggests a combination of both to balance motivation and relationship building. The choice of compensation strategy depends on factors like the competitive environment and product life cycle stage.

What is a major drawback of personal selling mentioned in the video?

• It is difficult to manage.

• It is not effective.

• It is time-consuming.

• It can be expensive.

Why might a salary alone not motivate salespeople effectively?

• It is too complex.

• It is unpredictable.

• It does not reward extra effort.

• It is too high.

What is a benefit of offering commission to salespeople?

• It simplifies payroll.

• It incentivizes more sales.

• It guarantees a fixed income.

• It reduces company expenses.

Why might a company choose a combination of salary and commission?

• To simplify the compensation process.

• To balance motivation and relationship building.

• To reduce training costs.

• To avoid paying high commissions.

How does the product life cycle influence compensation strategy?

• It dictates the commission percentage.

• It simplifies the compensation plan.

• It affects the need for new sales efforts.

• It determines the salary amount.