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Part V SALES FORCE LEADERSHIP

Part V SALES FORCE LEADERSHIP. Chapter 11: Motivating Salespeople. Motivation:. Learning Objectives: . Define motivation and explain sales management concerns with motivation. Tell how and why individuals needs may differ. Describe a basic model for the motivation process.

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Part V SALES FORCE LEADERSHIP

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  1. Part VSALES FORCE LEADERSHIP Chapter 11: Motivating Salespeople

  2. Motivation:

  3. Learning Objectives: • Define motivation and explain sales management concerns with motivation. • Tell how and why individuals needs may differ. • Describe a basic model for the motivation process. • Discuss the different types of quotas and the administrative issues involved in using quotas. • Describe how to design incentive and recognition programs and their limitations.

  4. Chapter Outline: • What is Motivation? • A Model of Motivation. • Quotas. • Incentive Programs. • Recognition Programs.

  5. What is Motivation? • Drive to initiate an action. • The intensity of effort in an action • The persistence of effort over time.

  6. Reasons for Motivating Salespeople • Frequent rejection • Physical separation from company support • Direct influence on quality of sales presentation • Indirect influence on performance

  7. Individual Needs:Maslow’s Hierarchy of Needs • Intense job challenge, full potential, full expression, creative expansion. • Achievement, respect, recognition, responsibility, prestige, independence, attention, importance, appreciation. • Belonging, acceptance, love, affection, family and group acceptance, friendships. • Security, stability, dependency, protection, need for structure, order, law, tenure, pension, insurance. • Hunger, thirst, reproduction, shelter, clothing, air, rest. Self-Actualization Self-Esteem Love-Belonging Safety-Security Physiological

  8. Maslow’s Needs & Related Sales Force Motivators

  9. Career Stages • Does everyone go through these stages? • What can be done to address the concerns of salespeople at each stage?

  10. 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

  11. 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 somethingother than promotion

  12. 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

  13. 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)

  14. 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 • Maintenance salespeople are less satisfied with supervision than are establishment salespeople • Disengagement as well as maintenance occurs quite early for some people -- Is this a management concern?

  15. Overlap of Ages on Career Stages AgeRange 20 30 40 50 60 65

  16. Figure 13-4:Career Stage Characteristics

  17. Giving Status to Salespeople • Compensation - exceed first-line managers • Job Title - no cost but considerable payback • Company Car Upgrade - salespeople spend much time in carreminds them of their value. • Car Phone –- justified on a purely business basis

  18. 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 • Outside Secretarial Support- or more exclusive central. • Published Success Stories- high form of recognition • Task Force Assignments- e.g., review of all paperwork.

  19. Figure 11-5:Model of Motivation Valence Importance of receiving more of certain rewards Effort Performance Rewards Expectancy Likelihood that increased effort will lead to greater performance Instrumentality Likelihood that greater performance will lead to more rewards

  20. A Model of Motivation: • Effort-Performance Relationship. • Performance-Reward Relationship. • Importance of Rewards.

  21. Expectancy Theory System EFFORT PERFORMANCE REWARD EXPECTANCY Likelihood increasedeffort will lead to greater performance INSTRUMENTALITY Likelihood greater Performance will lead to more rewards VALENCE Importance of receiving More of certain rewards

  22. Chapter 11 Why the concern for sales force motivation? What are the different theories of motivation? Motivation Tools Self- Management Quotas Incentive programs Recognition Programs

  23. Self-Management • Behavioral Self-Management (BSM). • Self-set goals.

  24. Why Use Quotas • Help motivate salespeople. • Direct where to put effort. • Provide standards for evaluation. 1. Sales volumein dollar or point system • Points allow for different weights for different important products independent of price. • Points not affected by inflation. • Sales quota may be developed for: • Total territory sales, and/or • Individual product or product group.

  25. Various Types of Quotas 2. Profit-based quotas are rarely based on bottom line profits • Difficult to account for indirect expenses • Profits are usually configured as gross margins minus some load factor 3. Activity-based quotas are based on activities directly related to sales volume • More directly under control of the salesperson • Biggest problem is falsification of call reports • Issue of quantity vs. quality of activity?

  26. Small firms’ Sales < $40M Large firms’ Sales > $40M Figure 13-7:Use of the Various Types of Quotas 60% Sales Volume Quota Profit-based Quota Activity Quota 55% 32% 14% 28% 14%

  27. Incentive Program Decisions • What is Incentive Program? • What is difference from regular compensation such as commission? • Key decisions • Goals and Timing. • Prizes. • Administration Issues. • What is difference between Incentive and Recognition programs

  28. Types of Incentive Awards

  29. Recognition Programs: • What is Recognition Program. • Pace-Maker Conference. • Top Honors Conference. • Walter Wheeler Award.

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