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Problems faced by Sales Managers: Design compensation plans
The following are three problems often faced by sales managers:
1. Salespeople tend to overemphasize the easy-to-sell products in order to build sales volume. The other, more profitable lines are forced into the background.
2. Salespeople are not taking time to develop new accounts.
3. To improve a company's long-term position, salespeople should be doing more missionary work and developing long-term customers to meet expected competition.
Come up with a specific type of compensation plan that may be used to solve each of these problems. Design three separate compensation plans (one for each of the problems listed above). You only need to provide a general overview of the compensation plan you created.
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