Professor Chip Besio

Sales Management
Marketing 3345
MOTIVATION
What is Motivation??
Drive to initiate an action.
The intensity of effort in an
action
The persistence of effort over
time.
Why the concern
for sales force
motivation?
What are the
different theories
of motivation?
Motivation Tools

Self- Quotas Incentive Recognition
management programs programs
Frequent rejection
Physical separation from
company support
Direct influence on quality of sales
presentation
Indirect influence on performance
Why is Motivation
Important?
Steps to Greater
Personal Motivation

1. Define what you want.
2. Inform a special person of your
goals.
3. Do something.
4. Dont let failure deter you.
5. Break down problems into pieces.
6. Set deadlines.
7. Turn work into play.
8. Associate with people who motivate
you.
Sales Force Needs and Ways to Fill
Them

Sales Force Needs Company Actions to Fill Needs


Status Change title from salesperson to
area manager.
Buy salespeople more luxurious cars
to drive.

Control Allow salespeople to help plan sales
quotas and sequences of calls.

Respect Invite salespeople to gatherings of
top executives.
Put pictures of top salespeople in
company ads and newsletters.

Assign each salesperson a core of
Routine loyal customers that are called on
regularly.
Sales Force Needs and Ways to Fill
Them
Sales Force Needs Company Actions to Fill Needs


Accomplishment Set reasonable goals for the
number of calls and sales.

Stimulation Run short-term sales contests.
Schedule sales meetings in
exotic locations.

Honesty Deliver promptly all rewards
and benefits promised.








MASLOWS HIERARCHY OF NEEDS
Self-Actualization
Self-Esteem
Love-Belonging
Safety-Security
Physiological
Intense job challenge, full potential, full
expression, creative expansion.

Achievement, respect, recognition, responsi-
bility, 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.
Motivation and Personality, Abraham Maslow, 1970
AN EXERCISE TO DETERMINE YOUR
MOTIVATIONAL NEEDS
To perform the exercise, read through the following
statementscheck those which are most important in
motivating you to do your best work.
Select the ten most important statements.

629 Job security
847 Being trusted to do my job the way I think it should
be done.
333 Participating in work group conversations.
311 Having adequate shelter to protect from the
elements.
836 Having a job which allows me time with my family.
151 Having an opportunity for personal growth.
937 Socializing with my friends.
743 Being considered for an advancement opportunity.
431 Working with other people.
AN EXERCISE TO DETERMINE YOUR
MOTIVATIONAL NEEDS
Select the ten most important statements. (Contd.)
819 Having children.
458 Doing something meaningful with my life.
757 Being in a position to contribute new ideas.
828 Having an associate that looks out for my interests.
735 Including other people in what I do.
949 Being selected for an exclusive award.
234 Being involved with work associates in social and
recreational activities.
616 Being sexually satisfied.
146 Having a responsible person tell me when Ive
done a good job.
539 Having an active part in work related social
activities.
341 Knowing that other people respect me and my
work.
132 Acceptance as a work group member
Determining Your
Motivational Needs
Second Number to left of statement
indicates the category; how many in
each:
Number Category
1 Physiological
2 Safety - Security
3 Love - Belonging
4 Self Esteem
5 Self Actualization
YOUR SCORE
To determine results: the statements
are divided into five categories
intended to represent the five levels
in Maslows Hierarchy of Needs. The
second digit in each statement
number indicates the category.
These categories are: 1-Physiological,
2-Safety-Security, 3-Love-Belonging,
4-Self-Esteem, 5-Self-Actualization.

Number Percent
847 86%
341 74%
757 54%
431 51%
828 37%
458 37%
743 34%


Maslows Hierarchy
U.S. Salespeoples Responses
INDIVIDUAL NEEDS


Maslows Related
Hierarchy Sales Force
of Needs Motivators
Self- Challenging tasks
actualization calling for creativity

Esteem Recognition programs

Belonging Presidents Club $1 mil.

Safety & security Job security & fringes

Physiological Cash wages & bonuses
Self-
actualization
in service to
society
Safety
Physiological
Affiliation (belonging)
Chinese Culture Hierarchy of Needs
What Makes Great Salespeople?
The Competitor

This person not only wants to win, but derives
satisfaction from beating specific rivals -- another
company or even colleagues. They tend to verbalize
what they are going to do, and then do it.

The Ego-driven

They are not interested in beating specific
opponents, they just want to win. They like to be
considered experts, but are prone to feeling slighted,
change jobs frequently, and often take things too
personally.

What Makes Great Salespeople?
The Achiever

This type of person is almost completely self-
motivated. They usually set high goals and as soon as
they hit one goal, they move the bar higher. They like
accomplishment, regardless of who receives the credit.

The Service-oriented

Their strengths lie in building and cultivating
relationships. Winning is not everything to this person,
but they do respond to feelings of gratitude and
friendship from other people.
Sales is a boundary spanning position
you must be responsive to expectations
of multiple people.

Company
Sales
Manager
Customers Family
Salespersons Role Perceptions
Expectations: What do others expect me to do?
Ambiguity: How sure am I about what others expect?
Accuracy: Is what I think what they really expect?
Conflict: Does meeting expectations of one person
mean not meeting the expectations of
another?

Role Perceptions
Typical Sales Job Activities
Where is their potential for the
following:
Ambiguity
Lack of Accuracy
Conflict
Role Perceptions
Job Dimension Activities

SELLING FUNCTION Plan Activities Prepare Presentations
Develop leads Make Presentations
Prospecting Overcome Objections
Identify Decision- Introduce New Products
Makers

WORKING WITH ORDERS Write orders
Find last orders
Expedite orders Handle shipping
Handle back problems
orders

PRODUCT SERVICING Learn about Train customers
product
Test equipment Supervise repairs
Supervise Perform maintenance
installation

MANAGING INFORMATION Receive feedback Provide technical
Provide feedback information


Source: Adapted from William C. Moncrief, Selling Activity and Sales Position Taxonomies
for Industrial Sales Force, Journal of Marketing Research, August, 1996), pp. 266-67.

Typical Sales Job Activities
Job Dimension Activities

SERVICING THE ACCOUNT Stock shelves Count inventory
Set up displays Promote local
advertising

ATTENDING CONFERENCES Sales Product exhibitions
conferences Training sessions
Client conferences

TRAINING/RECRUITING Recruit new reps Train new reps
Travel with trainees

ENTERTAINING Parties Dinner
Drinks Lunch

TRAVELING Out-of-Town In-Town

DISTRIBUTION Sell through Train
Establish Credit processing
relationships

Source: Adapted from William C. Moncrief, Selling Activity and Sales Position
Taxonomies for Industrial Sales Force, Journal of Marketing Research, August,
1996), pp. 266-67.

Typical Sales Job Activities
Career Stages
Does everyone go through these
stages?
What can be done to address the
concerns of management at each
stage?
How can sales managers address
the management concerns at each
stage?
Motivation
Career Stage Characteristics

Exploration Establishment Maintenance Disengagement
Career Concerns Finding an Successfully Holding on to Completing
appropriate establishing what has been ones
occupational a career in a achieved; career.
field. certain reassessing career,
occupation. with possible
redirection.


Motivational Learning the Using skills to Developing Establishing a
Job Related skills required produce results. broader view of stronger self-
to do Adjusting to work and identity
the job well. working with organization. outside
Becoming a greater Maintaining a high of work.
contributing autonomy. performance Maintaining an
member of level. acceptable
an organization. performance
level.

Career Stages
Career Stage Characteristics
Exploration Establishment Maintenance Disengagement

Personal Establishing a Producing superior Maintaining Acceptance of
Challenges good initial results on the motivation, career
professional job in order to though accom-
self-concept. be promoted. possible rewards plishments.
have changed.
Facing concerns
about aging.

Psychological Support Achievement Reduced Detachment
Needs Peer Acceptance Esteem competitiveness from the
Challenging Autonomy Security organization
position Competition Helping younger and organi-
colleagues zational ife.

Career Stages
Career Stage Research
Findings
Job Satisfaction and Career Concerns
200 Salespeople -- Large Industrial
Organization:
all are least satisfied with promotion & pay
pay satisfaction is only dimension on which
exploration sales people are more satisfied than
establishment or maintenance salespeople
maintenance salespeople are less satisfied with
supervision than are establishment salespeople
Career Stage Research
Findings
Career Concerns and Age
200 Salespeople -- Large Industrial
Organization:
Note proportion of people in each stage
Note overlap in ages of people in each stage
Disengagement as well as maintenance occurs quite
early for some people --
Is this a management concern?
Relationship Between Career
Concerns and Age
Proportion of
Career Concerns Sales Force

Exploration 14%

Establishment 29%

Maintenance 42%

Disengagement 15%
Age Range
20 30 40 50 60 65
S&MM Compensation Survey 2008
Use of the Various Types of Quotas
14%
14%
55%
28%
32%
60%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Bar 2
Bar 1
Large firms
Sales >$40M

Small firms
Sales < $40M
Sales
volume
quota

Profit-
based
quotas


Activity
quota
Quotas & Reasons
for Use
1. Help motivate salespeople
2. Direct where to put effort
3. Provide standards for evaluation.
a. Sales volume in 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.
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?
Incentive Programs
What is difference from regular
compensation such as commission?
Key decisions
Goals -- Rules
Timing -- Awards
Participants -- Publicity
Theme -- Cost

What is difference between
Incentive and Recognition programs
Types of Incentive Awards
Used by 168 Firms
Percentage of
Type of Award Firms Using

Cash 59
Selected Merchandise 46
Merchandise Catalog 25
Travel 22

Giving Status to
Salespeople

1. Compensation -- exceed first-line managers
2. Job Title -- no cost but considerable payback
3. Company Car Upgrade -- salespeople spend
much time in car - reminds them of their value.
4. Car Phone -- justified on a purely business basis
5. Field Sales Council -- meet president for 1/2 day open-
ended discussion on field marketing conditions - report
back to field meetings the results
6.Outside Secretarial Support -- or more exclusive central.
7. Published Success Stories -- high form of recognition
8. Task Force Assignments -- e.g., review of all paperwork.