DIRECTING THE

SALES TEAM

Copyright 2001 by Harcourt, Inc. All rights reserved.

MOTIVATING SALESPEOPLE
TOWARD HIGH PERFORMANCE

Copyright 2001 by Harcourt, Inc. All rights reserved.

MOTIVATION
The components of a motivational system:
1 Understand what motivation is all about.
2 Develop a high-performance sales culture
3 Know salespeoples basic needs.
4 Realize that salespeople want to know what
is in it for them.
Copyright 2001 by Harcourt, Inc. All rights reserved.

The components of a motivational system:

continued

1 Get to know the personal side of salespersons.

2 Always remember that motivational coaching
is needed for high performance.
3 Be realistic about motivating salespeople.

Copyright 2001 by Harcourt, Inc. All rights reserved.

UNDERSTAND WHAT
MOTIVATION IS ALL ABOUT
In any discussion about the motivation of
salespeople, the following four questions need
to be considered:
1 What arouses salespeoples behavior?
2 What influences the intensity of the behavioral
arousal?
3 What directs the persons behavior?
4 How is this behavior maintained over time?
Copyright 2001 by Harcourt, Inc. All rights reserved.

Motivation refers to the arousal,

intensity, direction, and persistence of
effort directed toward job tasks over a
period of time.

Copyright 2001 by Harcourt, Inc. All rights reserved.

THE SALES MOTIVATIONAL MIX

Motivational Mix The arousal, intensity,
direction, and persistence of peoples behavior.
Extrinsic Outcomes Rewards obtained from
individuals environment.
Intrinsic Outcomes Occur purely from the
performance of the task itself.

Copyright 2001 by Harcourt, Inc. All rights reserved.

TABLE 12.1 THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX

AND EXAMPLES OF EACH MOTIVATIONAL METHOD

1.

2.

3.

4.

Sales culture
Ceremonies and rites
Stories
Symbols
Language
Basic compensation
Salary
Commissions
Fringe benefits
Special financial incentives
Bonuses
Contests
Trips
Nonfinancial rewards
Opportunity for promotion

5.

6.
7.

Challenging work assignments

Recognition
Sales Training
Initial
Ongoing
Sales meetings
Leadership
Style
Personal contacts
Performance evaluation
Method
Performance
Activity
Publicity

Copyright 2001 by Harcourt, Inc. All rights reserved.

DEVELOP A SALES CULTURE

Sales culture refers to a set of key values,
ideas, beliefs, attitudes, customs, and other
capabilities and habits shared or acquired
as a member of the sales group.

Copyright 2001 by Harcourt, Inc. All rights reserved.

IMPLEMENTATION OF A SALES CULTURE

Ceremonies and Rites

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Ceremonies and rites are the elaborate,

planned activities that make up a special
event and often are conducted for the
benefit of an audience.

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IMPLEMENTATION OF A SALES CULTURE

Ceremonies and Rites

Stories

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Stories are narratives based on true events

that are frequently shared among
salespeople and told to new sales reps to
inform them about the organization.

Copyright 2001 by Harcourt, Inc. All rights reserved.

IMPLEMENTATION OF A SALES CULTURE

Ceremonies and Rites

Stories
Symbols

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A symbol is one thing that represents

another thing.

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IMPLEMENTATION OF A SALES CULTURE

Ceremonies and Rites

Stories
Symbols
Language

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Many companies use a specific saying,

slogan, metaphor, or other language form
to convey special meaning to employees.

Copyright 2001 by Harcourt, Inc. All rights reserved.

TABLE 12.2 EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR

IMPLEMENTATION WITHIN THE SALES FORCE

CULTURE
Shared Values
Reward for performance
Customer service at any cost
Employees are part of family
Attain sales targets
Shared Beliefs
Customer orientation
We like this company
We are a team
The company cares about us
Quality work life
We are professionals

IMPLEMENTING CULTURE
Shared Ceremonies
Annual awards for meritorious customer
service
Monthly meetings to acknowledge people
who attain 100% of sales targets
Shared Stories
Sales managers who make salespeople successful; help with personal problems
Heroic efforts to please customers by legendary salespeople
Shared Symbols and Slogans
"Build bridges" to be in touch with
customers.
"We don't stand on rank" (equality of
family.)
Open offices for easy communication
Special plaques for customer service and
sales leaders

Copyright 2001 by Harcourt, Inc. All rights reserved.

WHATS IN IT FOR ME?

Expectancy theory is based on the
assumption that salespeople have
expectancies about what they should
receive from their employer as a result of
their work efforts.

Copyright 2001 by Harcourt, Inc. All rights reserved.

WHAT IS THE PROBABILITY OF SUCCESS?

Expectancy is the salespersons estimate of the
probability that expending a given amount of
effort on a task will lead to an improved level of
performance on some dimension.

Copyright 2001 by Harcourt, Inc. All rights reserved.

FIGURE 12.1 FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW

MUCH EFFORT THEY WILL DEVOTE TO THEIR JOBS.

What Is
the Probability
of Success?

Motivation
to Work

Will I Be
Rewarded
for Success?

Performance
Level

Are the
Rewards
Worth It?

Rewards
Intrinsic
Extrinsic

Equity
Determination
Inputs vs. Outputs

Feedback

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Are the
Rewards
Fair?

Satisfaction
Intrinsic
Extrinsic

WILL I BE REWARDED FOR SUCCESS?

The salespersons estimate of the probability that
achieving an improved level of performance
dimension will lead to increased attainment of a
particular reward or outcome may be defined as
instrumentality.

Copyright 2001 by Harcourt, Inc. All rights reserved.

ARE THE REWARDS WORTH IT?

Valence for rewards refers to the value the
salesperson places on the reward.

Copyright 2001 by Harcourt, Inc. All rights reserved.

Managerial Implications of Expectancy

Theory
1. Increase expectancies.
2. Make performance instrumental toward
positive outcomes.
3. Identify positively valent outcomes.

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ARE THE REWARDS FAIR?

If inequity is perceived, the salesperson
may be motivated to restore equity using
one of four methods.
First, the salesperson may increase or
decrease the level of input that may, in turn,
influence outcomes.
Second, the salesperson could distort the
facts by convincing himself or herself that
equity really does exist even though it may
not.
Copyright 2001 by Harcourt, Inc. All rights reserved.

If inequity is perceived, the salesperson

may be motivated to restore equity using
one of four methods.
continued
Third, the salesperson could choose another
salesperson with whom to compare the ratio
of outcomes to inputs.
Fourth, the salesperson could influence other
salespeople to decrease the amount of effort
they are putting into their job.

Copyright 2001 by Harcourt, Inc. All rights reserved.

HOW TO FACILITATE EQUITY

An individual will tend to reduce the level of
effort if one of these situations is encountered.
1. Sales performance did not increase.
2. No important rewards were given for meeting
quota.
3. The rewards given for meeting quota were not
worth the extra work.
4. Treatment was not fair because one persons
rewards were the same as anothers who worked
harder.
Copyright 2001 by Harcourt, Inc. All rights reserved.

Job Satisfaction and Work Attitudes

Job satisfaction refers to feelings toward the job.
Job dissatisfaction, aggregated across many
individuals, creates a sales force that is more
likely to exhibit:
1. Higher turnover.
2. Higher absenteeism.
3. Lower corporate citizenship.
4. More grievances and lawsuits.
5. Stealing, sabotage, and vandalism.
6. Poorer mental and physical health.
Copyright 2001 by Harcourt, Inc. All rights reserved.

Quality of Work Life

Categories:
1. Adequate and fair compensation.
2. A safe and healthy environment.
3. Jobs that develop human capacities.
4. A chance for personal growth and security.
5. A social environment that fosters personal
identity, freedom from prejudice, a sense of
community, and upward mobility.
Copyright 2001 by Harcourt, Inc. All rights reserved.

Quality of Work Life

continued

6. Constitutionalism, or the rights of personal

privacy, dissent, and due process.
7. A work role that minimizes infringement on
personal leisure and family needs.
8. Socially responsible organizational actions.

Copyright 2001 by Harcourt, Inc. All rights reserved.

The term productivity as applied by QWL

advocates means much more than each
persons quantity of work output.
It also includes:
Levels of turnover
Absenteeism
Accidents
Thefts
Sabotage
Creativity
Innovation
Quality of work
Copyright 2001 by Harcourt, Inc. All rights reserved.

Voluntary Turnover
Turnover refers to someone leaving their present
job.

Copyright 2001 by Harcourt, Inc. All rights reserved.

FIGURE 12.2 CLASSIFICATION OF TURNOVER

T e r m in a tio n s

V o lu n ta r y

D e s i r a b le
( lo w p e rfo r m e r)

N o n v o lu n t a r y

U n d e s i r a b le
( h ig h p e rfo r m e r)

C o n t r o l la b l e

U n c o n t r o l la b l e

Copyright 2001 by Harcourt, Inc. All rights reserved.

GET TO KNOW THE PERSONAL

SIDE OF SALESPERSONS!
UNDERSTAND THE SALESPERSONS
MOTIVATIONAL BEHAVIOR

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MATCH PEOPLES MOTIVES WITH

INCENTIVES THEY VALUE
Incentives are aspects of the environment that
appeal to the salespersons motives and have
enough worth to motivate purposeful behavior to
obtain them.

Copyright 2001 by Harcourt, Inc. All rights reserved.

Incentives that motivate people to do

their best are high motivators.
Examples of high motivators:
Rewards for successes
Recognition for achievement
Job advancement
Freedom to manage oneself
Training and sales meetings
Leadership
Performance evaluation
Incentive compensation plans
Copyright 2001 by Harcourt, Inc. All rights reserved.

Incentives that motivate little or not at

all or, if incentives are absent, that
demotivate are low motivators.
Examples of low motivators:
Company policy and procedures
Fringe benefits
Retirement programs
More supervision
Copyright 2001 by Harcourt, Inc. All rights reserved.

Sales managers would do well to explore

different aspects of incentives. Several
things to consider are:
Some salespeople like material incentives
versus nonmaterial incentives.
The attraction to short-range incentives
versus long-range incentives.
Positive incentives in most instances
motivate more successfully than negative
incentives.
Copyright 2001 by Harcourt, Inc. All rights reserved.

Motivate the Team

Six keys to managing a successful incentive
program:
Identify the business goal you hope to target.
Communicate the business needs to your
salespeople.
Listen to your salespeople.
Make sure the goals are reachable.
Dont repeat the same programs over and
over.
Dont try to do everything at once.
Copyright 2001 by Harcourt, Inc. All rights reserved.

MOTIVATIONAL COACHING IS
NEEDED FOR HIGHPERFORMANCE RESULTS
SALESPEOPLE HAVE BOUNDARY
POSITIONS
Salespeople are involved in meeting both the
needs of their customers and the needs of their
company.

Copyright 2001 by Harcourt, Inc. All rights reserved.

Salespeople experience role ambiguity

when they do not possess the information
necessary to adequately perform their jobs.
Salespeople experience role conflict when
conflicting, inconsistent, or incompatible
job demands occur from two or more
people.

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FIGURE 12.4 ROLE PERCEPTIONS INFLUENCE PERFORMANCE

S a le s
M an ager
F a m ily

R o le
A m b ig u ity

E ff o r t
C u sto m e rs

R o le
C o n fl i c t

C o m p an y

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P erfo rm an c e

Motivational TECHNIQUES
Teach teamwork
Empower
Communicate
Hear
Notice
Initiate integrity
Query
Unify
Exalt
Set standards
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THE BOTTOM LINE

To achieve company and individual objectives, salespeople need
to be motivated.
The first component involves an understanding of the
motivational concept.
The second component in a motivational program is a highperformance sales culture.
Salespeople have basic needs that influence behavior and lead to
goal attainment.

Copyright 2001 by Harcourt, Inc. All rights reserved.

THE BOTTOM LINE

A realization that salespeople want to know whats in it for
them is the fourth component.
Knowing the theory of motivation is not enough.
Proper motivational coaching is the sixth component of the
motivational program.
Being realistic about motivating salespeople is the final part of
the program.

Copyright 2001 by Harcourt, Inc. All rights reserved.