Complete List of Terms and Definitions for Sales Force Management Final

Terms Definitions
The achiever this type is almost completely self-motivated.  They usually set high goals and as soon as they hit one goal, they move the bar higher.  They like accomplishment, regardless of who receives credit.
behavioral observation scales focuses on identifying a list of critical incidents that lead to job success.  This approach assumes that some of a salesperson's job requirements are more critical to job success than others. 
straight salary paying a fixed amount each pay period.  More control over wage levels and salesperson activities, but don't provide strong incentives for extra effort.
exploration stage the overall concern is finding the right occupation. 
behavioral systems when using these, managers are concerned with keeping track of what happens at each stage of the sales operations.  They value how people make sales more than the number of sales they make. 
the competitor Not only wants to win, but derives satisfactino from beating specific rivals.  Verbalize what they're going to do, and then do it.
Straight commission rewards people for their accomplishments rather than their time or efforts.  Paid a percentage of sales or gross profits that salespeople generate.  Foster independence of action and provide the maximum possible incentive, but sales managers have little control over salespeople.
batting average orders per call
the service-oriented their strenghts like in building and cultivating relationships.
disengagement stage invovles giving greater priority to issues other than work and career.  May occur as a gradual process.
Maintenance stage how people react to the reassesment of their careers.  Ex:  being turned down for promotion and realizing that future promotion opportunities are unlikely may trigger this reflective reaction in others. 
sales volume quotas specific volume targets established for each territory, and possible for each product line, for a specific period of time. 
the iceberg principle a sales increase, like the tip of the iceberg, tells only part of the story.  Sales maangers must search through their data to find out what is really going on. 
quotas quantitative goals assigned to individual salespeople for a specified period of time.  One of the most widely used tools in sales management. 
Motivation an individual's willingness to exert effort to acheive the organization's goals, while satisfying individual needs.
reward valence how much salespeople desire a particular reward will also influence their motivation to perform. 
Salary plus bonus used to provide reps with income security while the bonus gives added incentives to meet company objectives.  Most preferred plan.  Balances the need to control selling expenses and provide extra rewards for added results, but the size of the bonus is arbitrary.
behavior control systems concerned with keeping track of what happens at each stage of the sales process.  managers measure what the salesperson actually does.
five reasons for establishing quotas 1.  to help management motivate salespeople
2.  to direct salespeople where to put their efforts
3.  to focus management attention
4.  to measure salesperson accomplisment
5.  to provide a standard for evaluation
incentive programs short-term promotional events intended to inspire salespeople to a greater-than-usual performance level and provide them with rewards. 
profit contribution measuring salespeople on the results from their activities.  Begins with net sales for each territory, from which the cost-of-goods-sold and sales commissions are subjtracted, giving the dollar contribution margin. 
80-20 Principle when 80% of sales come from only 20% of buyers, you're probably losing money serving small accounts. 
expectancy theory the relationship between effot and perfomance, the relationship between performance and rewards, and the importance of receiving moreof a certain reward. 
call reports detail who was called on, at what stage the prospect is within the sales cycle, and what followup activities are need in the future.  
methods of compensation 1.  straight salary
2.  straight commission
3.  Salary plus bonus
4.  Salary plus commission
5.  Salary plus commission plus bonus
6.  Commision plus bonus
 
main objective of compensation programs to provide direction to the sales force to achieve the business's objective. 
equity theory claims that people make inputs versus outcomes comparisons with relevat others to determine relative equity. 
unlimited reimbursement plan salespeople submit itemized forms showing their expenditures, and the firm simply pays all reported expenses. 
expectancy refers to the salesperson's belief that greater effort wil lead to greater performance. 
Salary plus commission plus bonus can be effective when it's simple to understand and consisten with corporate objectives.  Allows the sales maanger to reward virtually every activity performed by salespeople
outcome controls managers set performance standards for each salesperson and evaluate the results against the preset standards. 
attribution theory suggest that people are motivated to generate reasons for why an event occured, especially when the outcome is unexpected, when it generates suspicion, or when one fails to acheive something. 
recognition programs similar to incentives in that an individual or group of salespeople receives an award for exceptional performance. 
the four factor model indicates that sales can be increased by working mroe days, making more calls per day, closing more sales with customers, and increasing the sales per order. 
goal theory examines the relationship between goal setting and subsequent performance.  proposes that difficult goals, if accepted, will lead to higher performance than moderate or easy goals. 
total sales volume the combined sales of all products and all customers from all salespeople in the firm.
limited repayment plans the firm sets dollar limits on each category sales expenses. 
establishment stage people at this stage are usually willing to put in long hours to imporve their performance.  Settling down will occur sometime the late twenties to early thirties. 
instrumentality belief that a higher leve lof performance iwll lead to greater personal rewards. 
team-selling invovles two or more salespeople in separate territories who need to coordinate their activities to complete the sale. 
unit volume quotas sales objectives are stated in terms of the number of units of each product to be sold.
management by objectives a commonly used behavioral system that's also called development and performance management.  Salespeople and sales managers jointly set personal development goals for the subordinate that can be completed within a specific time period. 
qualitative measures include attitude, communication skills, product knowledge, among others.  A manager typically provies a subjective evaluation of the salesperson's performance on each dimension. 
The ego-driven not interested in beating specific opponents; they just want to win.  Like to be considered experts but are prone to feeling slighted, change jobs frequently, and take things too personally.
evaluation a comparison of sales force goals and objectives with actual achievements in the field. 
activity quotas set targets on specific activities that will help meet a firm's sales and profit objectives.
salary plus commission gives sales reps the push needed to sell complex products or services.  Commission rates can be adjusted to promote the sale of individual products, but they're expensive and costly to administer. 
10-3-1 rule for every 10 qualified prospects, 3 will entertain a proposal, and 1 will become a customer. 
gross margin commission plan ensure that a sales force is working to achieve the highest profits possible.  commissions are a percentage of the gross margins realized by the salesperson. 
profit-based quotas focus on profits generated instead of just sales volume.  most likely to be used when salespeople make decisions that dramatically affect the company profits. 
compensation one of the most important tools for motivating and retaining field salespeople. 
intrinsic motivation the motivation to engage in an activity for its own sake. 
outcome-based evaluations when managers set performance standards for each salesperson and evaluate the results against the preset standards. 
what management should be concerned with when considering goal setting 1.  providing feedback
2.  gaining goal commitment
3.  building self-confidence
dollar volume quota preferred when there is a large number of similarly priced items, when prices reflect management's selling priorities, and when prices are relatively stable. 
behavioral self-management an approach used to encourage intrinsic motivation that consists of a series of steps involving monitoring, goal setting, rehearsal, rewards, and self-contracting. 
per-diem plans pays the salesperson a fixed dollar amount for each day or week spent in the field. 
commission plus bonus plan combines the incentives of a commission plus the special rewards for meeting objectives.  Easy to understand and fairly simple to administer. well-suited for abrokers or independent sales reps
point quota system the quota is stated as a certain number of points to be earned for selling each product.