The Design of Incentive Programs for the Sales Function

• Main Authors: Shang-ti Hsia, 夏尚悌
• Other Authors: Farn,Cheng-Kiang
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/78041172382266210271

碩士 === 國立中央大學 === 高階主管企管碩士班 === 103 === Abstract According to IHS (2014) market survey, the global small-median size display demand is approximately 42.3 billion US dollars in year 2014. Its primary applications are smart phone, mobile PC and automotive monitor. These are also the areas known to the general public. The mainstream technology is Thin-Film Transistor LCD display. The Passive-Matrix Organic Light-Emitting Diode (PMOLED) display technology has been limited to the niche market due to its product characteristics. This study focuses on a median sized PMOLED company, attempting to gain more insight into the issue of sales performance evaluation and motivation. The traditional approach in the industry has been to measure sales performance based on an index consisting of sales revenue and profitability. This may not be the appropriate approach, since the sales force may focus on his/her own short-term performance and overlook the real requirements of the important customers. Like other electronics components producers, the clients of small-median size display are electronics product produces. New electronics products require considerable lead-time to develop. There are uncertainties in finally selling a component, even if is adopted during design-in phases. Meanwhile, there are possibilities of multi-sourcing policy for end product producers, and this will also affect the final sales. The activities of business development to engage in each development phase for the clients are the core value of sales. Thus, the most effective sales always involve early in new product development for leading system companies and to ensure becoming one of their suppliers. However, this is a long-term endeavor. As a result, new business development is one of the critical Sales functions for the niche market supplier. This study analyzed the performance evaluation for the sales force, and attempted to design a better measure, taking into account of the longer term activities, so as to reflect the real values of the sales function. The new measure is based on the motivation theory, product life cycle model, and the a sales funnel approach. This new sales performance index is the key factors to determine the incentive programs. The new system is expected to lead the sales team to a clear goal of mid-term sales growth momentums. Keywords: Small-median size display, Passive-Matrix OLED (PMOLED), Niche market, incentive program, Sales performance_