Sales Incentive Costs

Posted in Marketing and Strategy Terms, Total Reads: 336

Definition: Sales Incentive Costs

Any firm requires a robust and active sales force for better penetration of their product offerings. Sales Incentives are required to motivate these sales force. Sales incentives need to be exciting so that it may motivate the sales force and it should be within the firm’s budget. The costs that is incurred by the firm for giving sales force incentives is called Sales Incentive Costs.

Sales Incentives comes in three flavours:

1.Job related incentives: This is the least expensive. It includes tangible items like phone, electronic devices, additional vacation time etc.

2. Tangible Incentives: Giving away expensive items falls under this category. It includes giving items like Televisions, cars, etc.

3. Experience Incentives: Experiences brings happiness. Hence, firms give holiday rewards to sales force. May be a free trip to some exotic place will make the sales force work actively.



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