Chapter 8: Motivating a Sales Force

Challenges of Motivating sales reps

→Sales job is unique →Isolation from peers/detachment from company →Conflicting Company Sales Goals →Changes in the Market

Conflicting Perceptions of what motivates employees (Managers Rank)

1. Compensation 2. Interesting work 3. Appreciation of work done 4. Being well informed

Salesperson Characteristics

1. Demographics 2. Psychological Traits 3. Experience 4. Career Stages

Conflicting Perceptions of what motivates employees (Employees Rank)

1. Interesting work 2. Appreciation of their work 3. Being well informed 4. Compensation

Maslow's hierarchy of needs and possible sales managers' actions

1. Physiological needs 2. Safety needs 3. Social needs 4. Esteem needs 5. Self- actualization needs

Conditional Links of Expectancy Theory

1. Reward/ Effort Evaluation 2. Are the rewards worth the effort? 3. Are the rewards equitable? 4. Performance/Reward: A conditional link 5.Effort/Performance: A conditional link 6. Perceived reasons for success and failure

Factors that might affect motivation:

1. Unique Nature of the Sales Job 2. Individuality of Salespeople 3. Diversity in company goals 4. Changes in Market Environment

Extrinsic Rewards

(such as pay and recognition) are provided by others.

Financial Rewards

-Basic compensation plan -Salary -Commissions -Bonus payments -Fringe benefits -Contest Design - Prizes - Promotion - POSSIBLE: Objections to contests

Motivational Effort:

-Choice of actions -Intensity -Persistence -Outcome

What is an "A player

-Consistently performs in the top 10% -Exhibit model behavior

Non-financial rewards

-Recognition -Awards - Praise and encouragement - Opportunity for promotion (can also be financial) - Sales meetings and conventions - Leadership -Customer feedback -Coperate Culture -ETC. Page 238 for more examples

Dual- Factor Theory

Another theory of motivation, developed by Fredrick Hertzberg, also is based on the idea that people have needs that they will seek to satisfy through their behavior.

Hygiene Factors

Are company policies, supervision, and working conditions (deals with work environment rather than the work itself)

Motivation Factors

Are recognition, responsibility, challenge, and opportunities for growth. (part of the job itself and must be present for salesperson to feel motivated)

Challenges and Changes in Sales Force Motivation

One of the most challenges facing sales force mangers is the plateaued salesperson

Role Ambiguity

Results when sales reps are not sure what is expected of them.

Maintenance Stage

Sales reps are valuable to the company because they generally account for a large volume of their company's sales

Exploration Stage:

Sales reps are very achievement oriented and are particularly interested in advancement and growth opportunities.

Establishment Stage

Sales reps usually become committed to their occupations, striving to successes, to get ahead.

Disengagement Stage

Salespeople are mentally preparing for retirement

Motivational programs can lose effectiveness if:

There are changes in the Market

Motivation

To desire to expand effort to fulfill a need

A sales manager acts as a catalyst , providing both the stimulation for salespeople to feel motivated and the proper rewards so that they continue to feel motivated.

True

All motivation is self-motivation.

True

Salespeople cannot be motivated unless they want to be.

True

Salespeople must have the ability to perform as well as the motivation to do so.

True

The challenge for management is to identify , understand, and channel the motivation that their salespeople possesses.

True

Attributions

actions they have made towards failure or success

Expectancy Theory

builds on the idea that needs provide the starting point for understand an individuals motivation.

Intrinsic Rewards

come from performing the task itself. (Ex. feeling accomplishment from landing a big account)

Role Theory

concerns the social roles people occupy and the various behaviors that are appropriate to those roles.

How Sales Mgrs can motivate "A" Players

→Drive more teaching opportunity their way →Assign them to lead a new initiative →Disrupt them - push them to perfect their craft →Find ways to create competition - not just the size of the prize...love recognition

Sales Job being unique would mean:

→Lots of frustration and rejection one day →Huge "high" when making a sale

Plateaued Salespeople Characteristics

→No clear career path - lack up upward mobility →Not managed adequately →Bored and Burned out -Economic needs are met →Discouraged with company - overlooked for promotion →Lack of ability - can't keep up with technology →Avoiding risk of management job - won't transfer

Plateaued Salespeople Solutions

→Recognize symptoms early (behavior, sick time, leave early, energy, complaints) →Discuss with rep then set clear expectations →Develop new assignment - (shift accounts, mentoring reps, etc) →Bottom line---their experience and skills should not be wasted!

Sales meetings purpose:

most commonly used methods of motivating salespeople

Sales Force Segmentation

offers a balance between individualizing the motivational tools and one program for everyone

Plateaued Salesperson (p.244)

one who has stopped improving and developing

People seek (consciously or unconsciously) to fulfill some ____________________________

physiological or psychological need

Role Conflict

stems from two sources: 1. The sales rep is trying to serve to masters: the company and the customer 2. Varying demands placed on the sales rep by different groups within their own companies

Management by objectives (MBO)

to increase the sales staff's understanding and acceptance of the criteria by which they will be evaluated.