EI company as an example to discuss the issue of Incentive Sales.docVIP

 PAGE \* MERGEFORMAT 7 EI company as an example to discuss the issue of Incentive Sales With the further development of China’s market economy, China’s pharmaceutical products business competition is not competition, has entered the all-round competition, including sales force management level. No sales force, the production of drugs has been difficult to sell, no sales force , difficult to obtain marketing companies to bring high profits. Therefore, the sales force’s morale and motivation for improving the sales and marketing effectiveness is particularly important for enterprises to create profits. However, the implementation of sales force in the enterprise incentive management process, the marginal decrease effect, ratcheting, hockey stick effect is the impact of sales force three most important factors in motivation. EI is the parent company owns 41 subsidiaries of the Corporation, in the top 19 global pharmaceutical industry (2006, is a comprehensive research and development based pharmaceutical manufacturers. EI in China’s development experience is from the general to good, from good to recession process, which among many reasons. this paper, through analysis of cases associated with human nature, to explore the most critical reason: diminishing marginal sales region, sales targets and sales pay ratcheting, The hockey stick effect of sales compensation. EI in the initial stage, the structural model was a good incentive to overcome the diminishing marginal effect, ratcheting effect with the hockey stick, but since 2002 has been a structural change of incentive system, mainly in sales compensation design appears in a direct commission and Aricept for special compensation award, there has been hockey effect, but there is not serious .2004 diminishing marginal effect and ratchet effect in 2005, the hockey there is a clear effect until 2007, These three effects combine to play a role in the morale of the EI harm sales team reached its peak, this is the k