Professional Documents
Culture Documents
SALES FORCE
LEADERSHIP
Chapter 11:
Motivating
Salespeople
What is Motivation?
Frequent rejection
Physical separation from company
support
Direct influence on quality of sales
presentation
Indirect influence on performance
What Goals are Most
Important?
Increase 66.1%
Sales Revenue
Enhance Company
31.9%
Credibility
0 20 40 60 80
How Successful Were You at
Reaching Your Goals?
Increase 27.9%
Sales Revenue
72.1%
4. Physiological,
5. Safety-Security,
6. Love-Belonging,
7. Self-Esteem,
8. Self-Actualization.
Self-actualization
in service to
society
Safety
Physiological
Affiliation (belonging)
Maslow’s Hierarchy
Hygienes
Policies
Tech. Supervision Motivators
Salary Achievement
Interpersonal Relations Recognition
Working Conditions Work Itself
Responsibility
Advancement
Career Stages
Motivational Needs
– Learning the skills required to do the job well.
Manager Role?
Exploration 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 Stage
Motivational Needs
– Use skills to produce results, increase job autonomy
Manager Role?
Establishment Stage
Motivational Needs
– Use skills to produce results, increase job autonomy
Manager Role?
– Provide high rewards for high achievers
– Have salespeople recognize success has something
other than promotion
Maintenance Stage
Motivational Needs
– Develop a broader view of work and organization,
maintain a high level of performance
Manager Role?
Maintenance 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 Stage
Motivational Needs
– Establish a stronger self-identity outside of work,
maintain performance level
Manager Role?
Disengagement 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
Satisfaction
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
Establishment 29%
Maintenance 42%
Job Title
- no cost but considerable payback
Car Phone –
- justified on a purely business basis
Giving Status to
Salespeople
Field Sales Council
- meet president for 1/2 day open-ended discussion
on field marketing conditions - report back to field
meetings the results
You only have the final left to take (worth 100 points). Plus, you
really didn’t put the effort into studying for the other exams for
this class, but you were in the B to B+ range.
Also suppose, if you get an “A” for the course, your GPA hits
the 3.5 mark, which now makes you eligible to get an interview
with a prestigious firm.
Expectancy Theory System
Bonus clause:
If I exceed the goal of increasing the number of accounts by 10% before the year is
out, I will
Why Use Quotas
Travel 22%
Figure 13-7:
Use of the Various Types of
Quotas
60%
Sales Volume
Quota 55%
32%
Profit-based
14%
Quota
28%
14%
Activity Quota
Large firms’ Sales > $40M Small firms’ Sales < $40M
Experiential Exercise
Develop an incentive program for the following company. The report of
the program should include a statement of the purpose of the program,
its budget, and the specifics of the program such as theme, prizes, rules,
timing and publicity.
ABCO Inc. is located in Dallas, Texas. Its sales last year were
$25,750,000 with pre-tax profits of approximately $400,000. Growth has
been steady over recent years, averaging about 10 percent a year.
ABCO manufactures and markets vinyl binders, loose-leaf products, and
index tabs. These products are used as manuals, price books, and
advertisements by their clients. The bulk of ABCO’s sales are to
industrial companies. Some of their major customers include EDS, 3M,
Dr Pepper, and Xerox. Sales in the first half of the year are usually
around 65% of total sales, while sales in the last quarter are usually
about 15-20% of total annual sales. The margins (net sales minus cost
of goods sold) on these products are approximately 40% on average.
The margins are this high because the products are custom designed for
the customer. Depending on the product line and customer situation,
ABCO’s selling cycle will vary from two weeks to three months.
Experiential Exercise
The sales force consists of six women and three men. They are all
located in the Dallas/Fort Worth area with exception of one of the men,
who is located in Oklahoma City. They range in age from 25 to 48 years
old. Two of the men and one of the women have been with the company
since its inception 15 years ago. All of the people are college graduates.
ABCO has never had an incentive program in the past having relied on
commissions as an incentive.
NOTE:
Why the
concern
for sales
force
Motivation Tools
motivation?
What are
the different
theories of Self-
Quotas
Incentive Recognition
Management programs Programs
motivation?
Figure 13-5:
Model of Motivation
Valence
Importance of receiving
more of certain rewards
Expectancy Instrumentality
Likelihood that increased Likelihood that greater
effort will lead to performance will lead
greater performance to more rewards
Figure 13-6:
Self-Management Techniques
TECHNIQU
E METHOD TOOLS
Self- Observe and record Can use diaries,
monitoring behavior. counters, tally sheets,
charts.
Goal setting Establish behavior Should be specific and
change objectives. with a short time
horizon.
Stimulus Modify antecedents to May involve introducing
control behavior. or removing cues.
Characteristics
Exploration Establishment Maintenance Disengagement