Compensation

It is the amount received by sales

people in exchange of the work
or services performed by them.
 Factors affecting Compensation plan:-

1. Nature of the sales job

2. Nature of the product
3. Financial capacity
4. Advertising capacity
5. Channel of Distribution
6. Economically justified
Motivation
 Motivation
• Motivation is a desire to achieve a goal, combined
with the energy to work towards that goal. For
every individual there is a variable driving force. It is
a combination of factors that lead people to achieve
their goals.
There are some of the motivational theories are as:-
1. Maslow’s need hierarchy theory
2. Hertzberg 2 factor theory
 There are 2 types of motivation:-
• Positive motivation-
It is a response which includes enjoyment and
optimism about the task.
• Negative motivation-
motivation which involves undertaking of
tasks because there will be undesirable
outcomes, if tasks are not completed.