Johnson Drug Company Needs to Research Proposal

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So every often, the retailer would be aware of other similar products in the market and if client brings up other products, the sales people should know why their product is better. This can only happen if they know of other products.

Even though the training program would be an additional financial burden, still the rewards and benefits can be enormous. In the light of what it can do for the company, it is safe to say that some additional cost should not be used as an excuse to ignore training. Not only does training make sales people more effective, it also gives them a sense of self assurance and confidence which automatically draws people to them because their body language would be able to communicate their knowledge and will make the product more attractive.

Secondly with training, the staff would also be able to address the needs and problems of their clients. If the clients have any problems with the system or with their sales management in general, the sales people can help them identify the root cause and hence build a more positive relationship with the clients. This is extremely important for giving the company an edge over its competitors.

Sales manager's role and responsibility also need to be reviewed. It is not enough to base compensation on sales report only. Sales manager must interact with sales personnel to be able to find out what problems they are facing and what are they doing apart from selling the units. This way the manager can discover any serious obstacles in the way of selling systems and hence can work on that problem in order to facilitate the process. Manager should also understand that sales people may actually be doing more work than the sales report reflects. They may not be able to sell enough units, but this could be due to a variety of reasons and not just lack of hard work. Some sales personnel may actually be working very hard but factors beyond their control may be affecting final sales such as issues with the use of the new system, improper knowledge of how the system works or availability of cheaper options in the market.

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The company also needs to re-examine and revise the compensation plan as suggested before. There are few options available to the company. It can keep the same plan but that would only add to the problems. Straight commission program is also faulty since it takes into account nothing but units sold which doesn't compensate the sales people for extra work and effort made by them in other areas. This can lead to extreme frustration and lower morale.

The company must have a direct salary plan. This means that apart from the commission made on sales, the sales people should be able receive fixed compensation on monthly basis because that would take off the pressure and help them perform better. But this is not to say that salary alone should be the sole compensation plan. If salary is fixed and there is no other reward, that means every sales person will be getting this amount and the actual effort or performance might get ignored. In order to keep the force motivated, it is important link pay to performance and effort.

Thus the best plan would be the one where both salary and commission co-exist to compensate the sales force for its effort. Apart from taking into account the actual units sold etc., the manager should also find out how the sales people are connecting with the clients. The best way of doing that would be to have a program incorporated whereby clients can comment on their experience with sales people. This would motivate the employees to perform better and also make clients feel empowered. In short, a more effective reward plan must be in place along with a more comprehensive training program for increased motivation and better….....

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