What is motivation?What is motivation?

The desire to expend effort to fulfill a needA driving force that impels you to action

Why do people feel Why do people feel “motivated?”“motivated?”

They are seeking to fulfill some physiological (biogenic) or psychological need (psychogenic) need.

Why do sales people need Why do sales people need motivating?motivating?

The job involves a lot of rejection.The job is largely unsupervised.The rep is physically detached from other

employees and the company.Performance and reward are closely

entwined for most sales jobs.

Necessary Conditions for Necessary Conditions for MotivationMotivation

You must believe there is a strong link between effort and performance.

You must believe there is a strong link between performance and reward.

You must feel the rewards are desirable.

Necessary Links in MotivationNecessary Links in Motivation

You must believe more effort will lead to better performance.

“If I study longer for this test, I will make a better grade.”

You must believe that increased performance will lead to better rewards.

Across-the-board vs. merit raise

Are the rewards worth the Are the rewards worth the effort?effort?

Hygiene Factors – conditions of the work environment (not the job itself)

Up-to-date equipment; adequate supplies, friendly co-workers

Hygiene factors can lead to less dissatisfaction, but can NOT motivate.

Motivation FactorsMotivation Factors

Inherent parts of the job itselfChallenging or interesting tasks, level of

responsibility and authority, opportunity for promotion or recognition

These types of factors directly affect how motivated a person feels.

How can pay be both a hygiene How can pay be both a hygiene and motivating factor?and motivating factor?

The overall level of pay (pay scales and salary ranges) is a characteristic of the company and the job.

The specific level of one’s pay and how often it’s changed reflect the nature of the job itself and your performance.

Types of MotivatorsTypes of Motivators

Financially-Based RewardsSalary, commissions, bonuses, fringe

benefit payments, sales contestsNonfinancial RewardsRecognitions (trophies, certificates), praise,

job enrichment, promotion opportunities, advancements

Problems with Sales ContestsProblems with Sales Contests

Work only for the short run – sales decline or return to normal after the contest period.

May lead to unethical or manipulative behavior – high pressure selling, pre- or post-dating of orders

Designing Recognition Designing Recognition ProgramsPrograms

Top management should be involved in designing and giving the awards.

If too many people receive the awards, they lose their value. (About ½ the group should be recognized.)

The awards should be well-publicized and publicly presented.

Other MotivatorsOther Motivators

Sales MeetingsConventionsTraining ProgramsMentoringQuotasTerritory BudgetsPerformance Evaluations

What is “plateauing?”What is “plateauing?”

Salesperson has stopped improving; seems to have lost drive and interest

Caused by: lack of upward mobility, satisfaction with pay, perceptions of unfair treatment, burnout (mentally and physically drained)

Solutions: set clear performance standards, assign a new project, switch accounts