CHAPTER 13CHAPTER 13

MOTIVATING THE SALESFORCE

MOTIVATIONMOTIVATION

• Motivation is the desire to expend effort to fulfill a need.

• In terms of sales, it is the effort salespeople want to make toward various aspects of their jobs.

IMPORTANCE OF MOTIVATION

IMPORTANCE OF MOTIVATION

• Unique nature of sales positions

• Individuality

• Diversity of company goals

• Changes in market conditions

BEHAVIORAL CONCEPTSBEHAVIORAL CONCEPTS

• The process begins with an aroused need

• Three conditions must be met– rewards must be desirable– gaining rewards is based on performance

(standards have been enunciated)– performance goals are attainable

CAREER STAGES

• Exploration

• Establishment

• Maintenance

• Disengagement

THEORIES OF MOTIVATIONTHEORIES OF MOTIVATION

• Maslow’s Hierarchy of Needs

• Herzberg’s Motivator/Hygene Theory

• McClelland’s Three Needs Theory

• Equity Theory

• Expectancy Theory

MASLOW’S HIERARCHY OF NEEDS

MASLOW’S HIERARCHY OF NEEDS

• Physiological

• Safety

• Social

• Esteem

• Self Actualization

MASLOW’S HIERARCHY OF NEEDS

MASLOW’S HIERARCHY OF NEEDS

• These needs can be satisfied with intrinsic and extrinsic rewards.

• Extrinsic rewards are provided by others

• Intrinsic rewards are come from the task itself

MOTIVATOR/HYGENE THEORY

MOTIVATOR/HYGENE THEORY

• Hygene factors (sources of dissatisfaction)

• Motivators (sources of satisfaction)

• Is “pay” a motivator or a hygene factor?

THREE NEEDS THEORYTHREE NEEDS THEORY

• Achievement (nAch)

• Power (nPow)

• Affiliation (nAff)

EQUITY THEORYEQUITY THEORY

• Compare my efforts and rewards to another’s efforts and rewards

EXPECTANCY THEORYEXPECTANCY THEORY

• “The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual”

EXPECTANCY THEORY

EFFORT PERFORMANCE REWARDS

InstrumentalityExpectancy

Attractiveness

EXPECTANCY THEORYEXPECTANCY THEORY

• Attractiveness– importance one places on reward

• Instrumentality (Performance/Reward Link)– belief that performance will lead to reward

• Expectancy (Effort/Performance Link)– perception that exertion of effort will lead to

performance

EXPECTANCY THEORYIMPLICATIONS

EXPECTANCY THEORYIMPLICATIONS

• Do salespeople value the rewards?

• Are the rewards equitable?

• Greater rewards should be tied to greater performance

• Management must provide tools for salespeople to perform

MOTIVATING SALESPEOPLEMOTIVATING SALESPEOPLE

• Recruit “matches”

• Incorporate individual needs

• Provide job information and training

• Build self-esteem

• Be proactive in dealing with problems

• Build strong communication lines

• Understand the job

SPECIFIC MOTIVATORSSPECIFIC MOTIVATORS

• Compensation plan

• Job enrichment

• Recognition

• Encouragement and praise

• Sales meetings

• Sales contests

• Quotas

COMPENSATION PLANCOMPENSATION PLAN

• Financial rewards (salary, commission, bonus, etc.)

• Non-financial rewards

JOB ENRICHMENTJOB ENRICHMENT

• Provide responsibility and authority to make decisions

RECOGNITIONRECOGNITION

• Plaques, pins, certificates

• Honor clubs

ENCOURAGEMENT AND PRAISE

ENCOURAGEMENT AND PRAISE

• Inexpensive yet effective!

MEETINGSMEETINGS

• A communication tool

• Planning is important

SUCCESSFUL SALES CONTESTS

SUCCESSFUL SALES CONTESTS

• Reward more than one person

• Set realistic goals

• Vary the goals from one contest to the next

• Vary the prizes from one contest to the next

• Publicize rules

QUOTASQUOTAS

• Help motivate salespeople

• Direct where to put effort

• Provide standards for evaluation

QUOTA TYPESQUOTA TYPES

• Sales volume

• Profit based

• Activity

• Expense

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