Marketing - How Salespeople are Compensated

The video discusses personal selling, highlighting its importance and cost. It explores different compensation methods for salespeople, such as salary and commission, and suggests a combination of both to balance motivation and relationship building. The choice of compensation strategy depends on factors like the competitive environment and product life cycle stage.

What are the different compensation options mentioned for salespeople?

Why might a salary alone not motivate salespeople effectively?

How does commission serve as an incentive for salespeople?

In what situations might a company rely more on personal selling?

What factors should a company consider when determining the best way to compensate salespeople?