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Sales Force Incentives Based On Sales Of Strategic Objectives

Posted on:2009-02-01Degree:MasterType:Thesis
Country:ChinaCandidate:D H HuangFull Text:PDF
GTID:2199360272971623Subject:EMBA
Abstract/Summary:PDF Full Text Request
With the development of market economy in our country, the competition of Medicine Enterprise in our country is no longer the product competition, but of the omni-directional competition already, including the management of sales force. Drugs manufactured by the enterprise are very difficult to sell out without sales force. The enterprise is very difficult to obtain high profit without the sales force. Sales personnels' office is in their customers', they must face the possible rejection every day inside the strange environment of the customers, therefore it is very important for sales personnels' inspiration to elivate or stabilize their work morale.The rational distribution among sales territory, the sales target and the sales salary has a inspiration affect to medical representation. We set up sales territory according to market potential, set up the sales target according to the sales territory, set up the sales salary according to the sales target, the three are incident cross-correlations. The scientific combination of constitutive inspiration mode has the inspiration function, moreover, this kind of inspiration system is not only strong , but also durable. So, this kind of constitutive inspiration model determines the key goal in the realization of enterprise strategy.But in the management of sales territory, it is easy to present the boundary decreasing effect in the sales force. In establishment of sales target's, it is easy to present the notch wheel effect as in economy. In the sales salary design, it is easy to present the hockey stick effect as in the supply chain management science. As these three big effects belong to human nature, they act as the unmodified hidden rule to affect the managements of a sales force.EI Corporation experienced three stages in the development in China, it experienced from general to outstanding, outstanding to decline. There are many resons in the process. The article selectively analize EI Corporation's constitutive inspiration model including its vicissitude and the flaw.In the course ,we discovered constitutive property of EI Corporation's inspiration model has overcome the influence by the boundary decreasing effect, the notch wheel effect and the hockey good effect well. But from 2002, the constitutive inspiration system was changed mainly in the sales salary project design, such as direct commission and the special compensation prize of Aricept. From then on, it started to present the hockey stick effect.because of the resriction of product balance prize and the sales volume of Aricept is only 4% in EI Corporation, The phenomenon of the hockey stick effect was not serious. In 2004, the company started to present the boundary decreasing effect and the notch wheel effect.In 2005, the company presented the obvious hockey good effect.In 2007, these three big effects were unreasonablely combined which played the role together and do harmful effect to the crest in EI.This article took the EI Corporation's history of inspiration system's as the case, did analysis using the notch wheel effect,he hockey stick effect and the boundary decreasing effect. We discussed to set up the model and the principle on the constitutive property incentive mechanism, as well as proposed method to reduce the three big effects to influence the constitutive inspiration system., we provided a very good model to establishe the sales inspiration system for the enterprise of our country, especially medicine enterprise.
Keywords/Search Tags:sales force, the constitutive property incentive mechanism, the notch wheel effect, the hockey stick effect, the boundary decreasing effect
PDF Full Text Request
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