14. motivating the sales force


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14. motivating the sales force

  1. 1. Motivating the sales forceChapter 14
  2. 2. In this chapter we willdiscuss:• Concept of motivation• Motivational theories• Motivation and the productivity of the salesforce• Effect of personal characteristics on sales forcemotivation• Sales motivational mix• Motivating the sales personnel at differentstages of their career
  3. 3. Introduction• Importance of personal selling as a toolin promotional mix• Need of self-motivation for a salesperson• When sales manager come in to thepicture?• How to motivate? (Carrot-stick-Donkey)
  4. 4. Concept of motivation• Motivation  Movere  to move• Process that instigates goal-directedbehavior• Need Drive Goal Achievement• In sales force management, motivationrefers to the amount of effort a salesperson is willing to expend to accomplishthe tasks associated with his job.
  5. 5. Motivational theories1. Maslow’s Hierarchy of needs theory2. Herzberg’s two-factor theory3. Goal setting theory4. Expectancy theory5. Job design theories
  6. 6. Comparison of Maslow’s andHerzberg’s Theories of motivationMaslow’s Hierarchy of needs Herzberg’s Two-Factor theorySelf actualization needs Motivators:ResponsibilitiesChallenging workRecognitionachievementEsteem needsSocial needs Maintenance factors:Job securityGood payWorking conditionsType of supervisionInterpersonal relationsSafety & security needsPhysiological needs
  7. 7. (MBO)- Edwin LOckE
  8. 8. How it is useful in motivatingsales persons?• Generally helps at the time of territoryrealignments− Due to gain or loss of territory− How to deal with the gain of territory?− How to deal with the loss of territory?
  9. 9. Assumptions of the theory• It assumes that all individuals have thesame needs and can be satisfied byensuring certain job characteristics.• What’s the reality?• Along with job characteristics, individualsage, physical and mental capabilities alsoinfluences job satisfaction.
  10. 10. Motivation and theproductivity of the sales force• Two prime determinants of sales forceperformance− Ability to perform− Willingness to perform• Productivity = Output/Input• Sales productivity = Sales revenues /Sales expenses
  11. 11. Influencing factors of sales forceproductivity• Differences between manufacturingproductivity and sales force productivity• Influencing factors of sales force productivity− Customer reaction and volatility of market− Time taken to convert prospect in to customer− Work environment− Work methods− Selling skills− Sales person motivation
  12. 12. Motivation and theproductivity of the salesforce• Need of self-motivation for a sales person• Influence of motivation of productivity• How to motivate sales force and boostproductivity:
  13. 13. How to motivate sales force andboost productivity− Sales quotas− Sales contests− Compensation plans and reward systems− Innovative ideas− Fun work places− Improving communication− Participation in decisions pertaining toimprovements in selling techniques− Job enrichment helps in self actualization− Share in profits
  14. 14. Effect of personalcharacteristics on sales forcemotivation• Can the manager influence all the salespersonnel with same technique?• Whether cash incentives suffices all themotivational needs?• Differences between cultures ( American Vs.Japanese)• What’ s the alternative?
  15. 15. Study the personality type• Competitor• Achiever• Ego driven• Service oriented
  16. 16. Competitor• Thrive on beating the competition, believesonly win-lose philosophy• Sales contests, plaques and perks are themotivators• Examples:− IBM’s Golden circle program for top 10%− MetLife Insurance’s Holiday trip• Sales managers usually takes this as advantageto make sales persons excel in their efforts.
  17. 17. Achiever• Self motivators, sets their own goals, goodteam players• Its difficult for sales managers to motivatethem as they are self-motivated. Ways are− Continuous challenges− Plan for their professional development− Strengths & weaknesses analysis• Can be groomed to take on leadership andmanagerial roles.
  18. 18. Ego driven• Plaques and perks do not motivatethem and are super performers• Likes to be given importance,participate in decision-making• Can become good coaches/mentors• Can be made a part of advisorycommittee
  19. 19. Service oriented• Have empathy and the ability to build relationships.• Helps in maintain territories even in stiffcompetition• Mostly neglected by the organization as theperformance is measured based on sales quotas.• But in today’s customer oriented world neglectingthese people is suicidal.• Can be motivated by publicizing their customerservice efforts, giving perks and larger salesexpenses etc.
  20. 20. Sales motivational mix• Views of managers on motivating salespeople− “Good sales people are born”− “Money is the prime motivator”• Differences in sales peoples and salesmanagers opinions on motivators andde motivators
  21. 21. What constitutes motivators?• Rewards and recognition programs• Sales culture− Ceremonies− Stories of successful sales persons− Symbols such as gifts & plaques (E.g. Mary Kaycosmetics “Cinderella gift”)• Sales training which well-equips• Leadership style• Compensation of the sales personnel• A Fair & just performance evaluation system
  22. 22. Motivating the sales personnel atdifferent stages of their career• Passage of time brings various changes in one’sattitudes & perceptions towards life andcareer.• Need of studying career stages• Stages as per career stage model− Exploration stage− Establishment stage− Maintenance stage− Disengagement stage
  23. 23. GrowthincareerofthesalespersonAge of sales person (in years)ExplorationstageEstablishmentstageMaintenancestageDisengagement stage20 30 40 50
  24. 24. Motivating the sales personnel atdifferent stages of their career• Each stage will have specific careerconcerns, depending on how heperceives, interprets and reacts to theenvironment at each stage• What is the need of motivating salespeople?− For greater selling efforts− Enhanced sales performance
  25. 25. Exploration Establishment Maintenance DisengagementCareerconcernsFinding anappropriateoccupational fieldSuccessfullyestablishing a careerin a certainoccupationHolding on to what has beenachieved. Reassessing career,with possible redirectionCompleting one’scareerDevelopmentaltasksLearning the skillsrequired to do thejob well. Becominga contributingmember of anorganizationusing skills toproduce results.Adjusting to workingwith greaterautonomy. Developingcreativity &innovativenessDeveloping broader view ofwork and organization.Maintaining a highperformance levelEstablishing a strongerself-identity outside ofwork. Maintaining anacceptableperformance levelPersonalchallengesMust establish agood initialprofessional self-conceptProducing superiorresults on the job inorder to be promoted.Balancing theconflicting demandsof career and familyMaintaining motivationthough possible rewards havechanges. Facing concernsabout aging & disappointmentover what one hasaccomplished. Maintainingmotivation & productivityAcceptance of careeraccomplishments.Adjusting self-image.PsychosocialneedsSupport. Peeracceptance.Challengingposition.Achievement.Esteem. Autonomy.Competition.Reduced competitiveness.Security. Helping youngercolleaguesDetachment fromorganization &organizational life.Career stage characteristics
  26. 26. Exploration stage• 20 – 30 years of age group• Finding right occupation which suitshis abilities is the major concern• Self-image is created by showingcompetence• Stress arises due to no. of careeroptions which leads to job hopping
  27. 27. Exploration stage – Contd.• Generally they are dissatisfied with thejob due to lack of experience and areskeptical regarding incentives• It’s a challenge for sales manager tomotivate them
  28. 28. Establishment stage• Generally lies between 30 – 40 years of age• Settling down and advancing in it is the majorconcern because of social and familypressures• Career advancement is the major pressure,desirous of promotion• Balancing work and personal life is thechallenge
  29. 29. Establishment stage – Contd.• Advancement depends on the fact that whetherthe organization is having suitable positions• Sales management is one of the choice.• If the product reaches maturity stage salesperson may switch over• Creation of senior sales positions, dual careeroptions (specialized non management positions)is the option which can avoid turn over
  30. 30. Maintenance stage• Around 40 – 50 years age group• Psychological stress due to physical aging,limited growth opportunities, technicalobsolescence etc.• Tries to update him self to remain currentstatus• Doesn’t feel the need of competing with peersas they are satisfied with the present careerposition
  31. 31. Maintenance stage – Contd.• What ever may be the level of performancehe might have achieved, the sales person issatisfied and will not try to improve theposition• Some may continue & some may choose anentirely new occupation• Difficult for sales manager to motivatethem
  32. 32. Disengagement stage• Attempts to withdraw from the career• No longer interested in maintaining theposition, plans for retirement• Some may go for early retirements &involve in activities that give personalsatisfaction• Sales manager can do very little tomotivate them.