Creating an Effective Sports Sales Compensation Plan

1 UNIT 6 ASSIGNMENT YOUR TURN – A SPORTS PLAN BY GARY QUICK PARK UNIVERSITY COMPENSATION MANAGEMENT (HRM 637)

2 It is vital that the Buffalo Bisons have a new sales compensation plan now. This plan needs to allow them to stay viable and relevant in their organization. To do this, we will be reviewing what is desirable to create a sales compensation plan that is effective, efficient, and reasonable for all its employees. There are certain vital aspects when designing a sales compensation plan. The type of the people who enter the sales profession, the three salespeople of the company to sell tickets to their games, to sell its advertising of the team, and their support staff as well. It is essential that the three salespeople and their support staff be authentic fans of the team and be inspired by the success of the team. They also need to knowledgeable of the fan base and understand the desires of their fans. The organizational strategy is the next aspect to designing a sales compensation plan. This strategy needs to be a focused element on the anticipated behavior of the salespeople. Manufacturers and distributors will usually incorporate inspiring incentives with their network partners to add a unique motivational value for their salespeople to move a specified number of products or services. Shifting from brick-and-mortar model to omnichannel shopping can also drive its sales (Tran, 2021) . The Vice President of operations for the company has a desire to design a plan that revives their fan base. To do this, salespeople must re-motivate and re-entice its fan base. This can be a type of an organizational strategy for the company. Selling more fan-based merchandise, like their jerseys and hats, would encourage and entice its fans to buy their products. Advertising new players and what they possibly can do for their season would also encourage fans to buy

3 tickets in advance. To excel as a sales manager, certain skills are essential. Strong communicational skills are vital. You must be able to effectively articulate the value of what your company’s offering to build relationships with potential clients (Yellowbrick, 2023) . There are two types of sales commission plans; one is unit rates which are the typical commissions sales. They can be a flat rate or from a targeted level. For ticket sales, a targeted level approach for each of the salespeople would be the best approach. Another tactic would be to add on to the sales from its merchandise and advertising sales. Marketplace reliability is another factor if the team is not doing as well as it has in the past. A maturing market can also be a concern If the c ustomer ’s requirements are not progressing rapidly enough. In this type of a market, consolidation from its leading competitors will reduce its competitive strength (MasterClass, 2022) . Here, distracting improvements and new competitors are only gaining shares from relatively low levels, market shares of leading competitors have coalesced and are barely changing, and price/brand issues have superseded product innovation as a driver of its essential values. Cash flows are progressively becoming a positive trait and are being returned to the investors instead of market investments. With the Buffalo Bisons, the team itself is not doing as well as projected so its fan base may have declined (MasterClass, 2022) . There is no other local team for people to watch so advertising should focus on the reasons come out to a ball game and how the fan turnout would enhance players effectiveness. In a maturing market, salespeople can be more cautious and give a fan reason to come to the game rather than the preverbal “ Used car” salesperson that is trying to just increase their profits. A sales compensation plan

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4 could follow with a unit rate plan that is target centered rather than by ticket commissions alone. Ultimately, there are factors that can impact the dollar amount that you would pay for ticket sales. Enticing season ticket sales and premium packages, like box seats or VIP experiences offer additional revenue opportunities (Inspired Economist, 2023) . Competitor prices can affect the price of the tickets. Businesses should recognize that competitiveness externally is essential for current growth. Hence, if other minor league teams have different prices on their tickets, the attitude of a fan could be changed. Economic environments can influence the price of tickets. Thus, in a thriving economy, there are more people willing to spend money on tickets. As the demand for tickets goes up, the supply will go down (a typical supply and demand issue), and the increase of ticket sales would ensue. The product to be sold is a final element, from either its advertising or sales from tickets. Hence, if ticket sales are up, advertising at a packed game would be more desirable. As for the product being sold, the advertising would become more desirable and increase sales. If the team is doing well and is competitive, sales from relevant products as well as the ticket itself would be more popular to its fan base.

5 References Inspired Ecomonist. (2023, November 9). Sports Revenue Model: An In-Depth Analysis of Profitability in Athletics - Inspired Economist . Inspired Economist. https://inspiredeconomist.com/articles/sports-revenue-model/ MasterClass. (2022, March 24). Sports Marketing: 7 Tips for Marketing With Sports Brands . https://www.masterclass.com/articles/sports-marketing Tran, J. (2021, September 3). 6 best practices for sports marketing in 2022 sales seasons . World’s #1 POS for Magento. https://www.magestore.com/blog/sports-marketing-best-practices/ Yellowbrick. (2023, October 14). Effective Strategies for Sports Sales Managers: Boosting Revenue & Team Performance . Yellowbrick. https://www.yellowbrick.co/blog/sports/effective-strategies- for-sports-sales-managers-boosting-revenue-team-performance

Assignment 6 Your turn_A Sports Plan

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