Sales executives should manage effectively company’s accounting and cost projection methods as well as to choose the best distribution channels and the most appropriate sales compensation plans so that to assure firm’s profitability and productivity. Once deciding on the marketing plan, sales managers should focus not only on revenues, but also manage the costs effectively. Profitability analysis should be conducted for both, products and clients (Johnston and Marshall, 2013, Ch.12). However, it is important to analyze efficiency of each salesperson’s work, as it is questioned in the Takamatsu case. The table below shows the overall results achieved by each marketer.
Even though. Mr. Takamatsu was concerned about the productivity of Ota’s work in the company the results show that her sales were the highest - $800, 950. At the same time total expenses on the units sold by Ota were also the highest compared to other sales representatives. Nevertheless, her final contribution to profit was $26,255.12, which is about $3,000 higher than Chimura’s results and $10,000 more than Fujita’s. Taking into account, that Yoko Ota spent less time on sales calls and performed an average number of orders, her results are very decent and she remains the most profitable sales representative in Takamatsu Sports.
Hereby, I would advise Mt. Takamatsu to use some non financial bonus to reward the best marketer and to motivate others to perform more effectively. I would also suggest to reconsider sales compensation method, and increase the commission for the sales made, but decrease the amount of the fixed salary. In the modern business it is crucial to maintain a balance between goals and rewards, and adjust compensation plans every 1-3 years (Halliwell, 2015).
References
Johnston, M., & Marshall, G. (2013). Sales force management. (11th ed.). New York: Routledge. ISBN-13: 978-0-415-53462-8
Halliwell, S. (2015) 2015 Sales Compensation Trends. Compensation & Incentives. Available at: http://www.peaksalesrecruiting.com/2015-sales-compensation-trends/
