Incentives — A Vector of Improved Sales Performance?

Aims to discuss incentive schemes within sales management circles and illustrates effects on sales staff. Believes that there is a belief among writers that the ‘carrot and stick’ method prevails within the selling/marketing fraternity, but purports to show that sales people are motivated by the anticipated satisfaction that comes with performance, rather than by performance itself, stating that self‐esteem has a direct effect on performance. States that three main areas bear on the incentive system: monetary incentives affect goal setting; lower goals allow rewards to be obtained easier so resulting in lower performance; personalized income may be increased if budgeted individuals set own goals. Proposes in summation that middle‐term sales disciplines should be quantified and assessed by means of a merit‐based appraisal scheme. Concludes that it is naive to assume that incentives motivate sales people to perform more effectively and that sales managers have the power of improved motivation in their hands.