State very clearly "The company's bonus plan is (in)appropriate, because, X, Y and Z." * Provide 3 or more reasons for your position. * Review CH 9 textbook pages 228-229. * Consider where the marketing manager has control and influence and how that person could best be measured and rewarded.
Gordon Sparks Ltd. sells ergonomic chairs. The company implemented a new bonus structure for all of their
managers. If net income increased from the previous year, managers would be rewarded with 0.5% of the increase in
net income.
In January of last year, Mingle Nicholson was hired as the manager of the marketing department. As the marketing
manager, he was responsible for seeking external opportunities, managing budgets and understanding current and
potential customers. Every three or four days, Mingle would meet with the sales manager, Logan Freidman. The
meeting was usually about past sales, and whether there were changes to the selling strategy. This information was
extremely important to Mingle, since he was responsible to ensure the marketing objectives are aligned with the sales
objectives.
During the year, Mingle made several changes to Gordon Sparks' marketing strategy. Mingle created a set of popular
commercials, which were a complete success. Each commercial reached over 5,000,000 views on YouTube.
However, by the end of that year, Mingle realized that he did not receive a bonus from the company because the
company's overall financial performance remained the same. Discuss the appropriateness of the company's bonus
policy.
Suggestions to students:
* State very clearly "The company's bonus plan is (in)appropriate, because, X, Y and Z."
* Provide 3 or more reasons for your position.
* Review CH 9 textbook pages 228-229.
* Consider where the marketing manager has control and influence and how that person could best be
measured and rewarded.
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