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Part V
SALES FORCE LEADERSHIP
Part V
SALES FORCE LEADERSHIP
Chapter 11:Chapter 11:
Motivating Motivating SalespeopleSalespeople
Motivation:Motivation:
Learning Objectives:Learning Objectives:
Define motivation and explain sales management concerns with motivation.
Tell how and why individuals needs may differ. Describe a basic model for the motivation
process. Discuss the different types of quotas and the
administrative issues involved in using quotas. Describe how to design incentive and
recognition programs and their limitations.
Chapter Outline:Chapter Outline:
What is Motivation? A Model of Motivation. Quotas. Incentive Programs. Recognition Programs.
What is Motivation?What is Motivation?
Drive to initiate an action.
The intensity of effort in an action
The persistence of effort over time.
Frequent rejection
Physical separation from company support
Direct influence on quality of sales presentation
Indirect influence on performance
Reasons for Motivating Reasons for Motivating SalespeopleSalespeople
Individual Needs:Individual Needs:Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
Self-ActualizationSelf-Actualization
Self-EsteemSelf-Esteem
Love-BelongingLove-Belonging
Safety-SecuritySafety-Security
PhysiologicalPhysiological
Intense job challenge, full potential, full expression, creative expansion.
Achievement, respect, recognition, responsibility, prestige, independence, attention, importance, appreciation.
Belonging, acceptance, love, affection, family and group acceptance, friendships.
Security, stability, dependency, protection, need for structure, order, law, tenure, pension, insurance.
Hunger, thirst, reproduction, shelter, clothing, air, rest.
Maslow’s Needs & Related Maslow’s Needs & Related Sales Force MotivatorsSales Force Motivators
Maslow’sMaslow’sHierarchyHierarchyOf NeedsOf Needs MotivatorsMotivators
SELF-ACTUALIZATION
Challenging tasks calling for creativity
ESTEEM Recognition programs
BELONGING President’s Club $1 million
SAFETY & SECURITY
Job security and fringes
PHYSIOLOGICAL Cash wages and bonuses
Career StagesCareer Stages
Does everyone go through these stages?
What can be done to address the concerns of salespeople at each stage?
Exploration StageExploration Stage
Motivational Needs– Learning the skills required to do the job well.
Manager Role?– Reinforce accomplishments
– Spend time with salesperson
– Discuss long-term benefits of working for the organization
Establishment StageEstablishment Stage
Motivational Needs– Use skills to produce results, increase job autonomy
Manager Role?– Provide high rewards for high achievers
– Have salespeople recognize success has somethingother than promotion
Maintenance StageMaintenance Stage
Motivational Needs– Develop a broader view of work and organization,
maintain a high level of performance
Manager Role?– Challenge salespeople to use their knowledge in new
ways
– Introduce significant rewards for mastering new challenges
Disengagement StageDisengagement Stage
Motivational Needs– Establish a stronger self-identity outside of work,
maintain performance level
Manager Role?– Maintain focus on personal goals and importance of
organizational citizenship behaviors (e.g., being a role model, assist in other aspects of the organization)
Career Stage Effects on Career Stage Effects on SatisfactionSatisfaction
Select Research Findings:Select Research Findings: All stages are least satisfied with
promotion and pay– However, pay satisfaction is only dimension on which
disengagement salespeople are more satisfied than establishment or maintenance salespeople
Maintenance salespeople are less satisfied with supervision than are establishment salespeople
Disengagement as well as maintenance occurs quite early for some people -- Is this a management concern?
AgeAge RangeRange
20 30 40 50 60 65
Overlap of Ages on Career Overlap of Ages on Career StagesStagesCareerCareerConcernsConcerns
Proportion Proportion of of Sales ForceSales Force
Exploration 14%
Establishment 29%
Maintenance 42%
Disengagement 15%
Figure 13-4:Figure 13-4: Career Stage Career Stage CharacteristicsCharacteristics
ExplorationExploration EstablishmentEstablishment MaintenanceMaintenance DisengagementDisengagement
Career Career ConcernsConcerns
Finding an appropriate occupational field.
Successfully establishing a career in a certain occupation.
Holding on to what has been achieved; reassessing career, with possible redirection.
Completingone’s career.
Motivational Motivational Needs Job Needs Job RelatedRelated
Learning the skills required to do the job well.
Becoming a contributing member of an organization.
Using skills to produce results.
Adjusting to working with greater autonomy.
Developing broader view of work and organization.
Maintaining a high performance level.
Establishing a stronger self-identity outside of work.
Maintaining an acceptable performance level.
Personal Personal ChallengesChallenges
Establishing a good initial professional self-concept.
Producing superior results on the job in order to be promoted.
Maintaining motivation, though possible rewards have changed.
Facing concerns about aging.
Acceptance of career accomplishments.
PsychologicPsychological Needsal Needs
Support Peer acceptance Challenging position
Achievement Esteem Autonomy Competition
Reduce competiveness
Security Helping younger
colleagues
Detachment from the organization and organizational life.
Giving Status to Giving Status to SalespeopleSalespeople
1. Compensation - exceed first-line managers
2. Job Title - no cost but considerable payback
3. Company Car Upgrade - salespeople spend much time in carreminds them of their value.
4. Car Phone –- justified on a purely business basis
Giving Status to Giving Status to SalespeopleSalespeople
5. Field Sales Council - meet president for 1/2 day open-ended discussion on field marketing conditions - report back to field meetings the results
6. Outside Secretarial Support - or more exclusive central.
7. Published Success Stories - high form of recognition
8. Task Force Assignments - e.g., review of all paperwork.
Figure 11-5:Figure 11-5:
Model of MotivationModel of Motivation
EffortEffort PerformancePerformance RewardsRewards
InstrumentalityInstrumentalityLikelihood that greaterLikelihood that greaterperformance will leadperformance will leadto more rewardsto more rewards
ExpectancyExpectancyLikelihood that increasedLikelihood that increasedeffort will lead toeffort will lead togreater performancegreater performance
ValenceValenceImportance of receivingImportance of receivingmore of certain rewardsmore of certain rewards
A Model of Motivation:A Model of Motivation:
Effort-Performance Relationship. Performance-Reward Relationship. Importance of Rewards.
Expectancy Theory SystemExpectancy Theory System
EXPECTANCYEXPECTANCYLikelihood increasedeffort will lead togreater performance
INSTRUMENTALITYINSTRUMENTALITYLikelihood greaterPerformance will leadto more rewards
VALENCEVALENCEImportance of receivingMore of certain rewards
REWARDREWARDPERFORMANCEPERFORMANCEEFFORTEFFORT
Motivation ToolsMotivation Tools
Self-Management
Chapter 11Chapter 11
QuotasIncentiveprograms
RecognitionPrograms
What areWhat arethe differentthe differenttheories oftheories ofmotivation?motivation?
Why the Why the concernconcernfor sales for sales forceforcemotivation?motivation?
Self-ManagementSelf-Management
Behavioral Self-Management (BSM).
Self-set goals.
Why Use QuotasWhy Use Quotas
1. Help motivate salespeople.2. Direct where to put effort.3. Provide standards for evaluation.
1. Sales volume1. Sales volume in dollar or point system Points allow for different weights for different
important products independent of price. Points not affected by inflation. Sales quota may be developed for:
– Total territory sales, and/or– Individual product or product group.
Various Types of QuotasVarious Types of Quotas
2. Profit-based 2. Profit-based quotas are rarely based on bottom line profits Difficult to account for indirect expenses Profits are usually configured as gross margins
minus some load factor
3. Activity-based 3. Activity-based quotas are based on activities directly related to sales volume More directly under control of the salesperson Biggest problem is falsification of call reports Issue of quantity vs. quality of activity?
Figure 13-7:Figure 13-7:
Use of the Various Types of Use of the Various Types of QuotasQuotas
60%60%
55%55%
32%32%
14%14%
14%14%
28%28%
Sales Volume Quota
Profit-based Quota
Activity Quota
Large firms’ Sales > $40M Small firms’ Sales < $40M
Incentive Program Incentive Program DecisionsDecisions
What is Incentive Program?
What is difference from regular compensation such as commission?
Key decisions Goals and Timing. Prizes. Administration Issues.
What is difference between
Incentive Incentive and Recognition Recognition programs
Types of Incentive AwardsTypes of Incentive Awards
Used by 168 FirmsUsed by 168 Firms
Type of AwardType of AwardPercentage ofPercentage of
Firms UsingFirms Using
Cash 59%
Selected Merchandise 46%
Merchandise Catalog 25%
Travel 22%
Recognition Programs:Recognition Programs:
What is Recognition Program. Pace-Maker Conference. Top Honors Conference. Walter Wheeler Award.