Motivating Sales Personnel

MODULE 6 GROUP 1

Meaning of Motivation
y Motivating is goal-directed behavior, underlying

which are certain needs or desires. The complex of needs and desires stemming from within individuals leads them to act so as to satisfy these needs and desires.

y Motivation is the inner force that guides behaviour

and is concerned with the causation of specific actions. Motivation is a three-dimensional construct consisting of the following: Intensity: or the magnitude of mental activity and physical effort expended towards a certain action; 2. Persistence or the extension of the mental activity and physical effort over time; and 3. Direction or the choice of specific actions in specific circumstances.
1.

Motivational Help from Management

y Most sales personnel require motivational help

from management to reach and maintain acceptable performance levels. They require motivation as individuals and as group members. As individuals, they are targets for personalized motivational efforts by their superiors. As members of the sales force, their efforts are aimed towards welding them into an effective selling team.

Factors Affecting Quality of Performance

y Inherent nature of the Sales job y Sales Persons Boundary Position and Role Conflicts y Tendency toward Apathy y Maintaining a feeling of Group identity

Inherent Nature of Sales Job

y Although varying from company to company, similar

aspects include: 1. Every sales job is a succession of ups and downs, a series of experiences resulting in alternate feelings of exhilaration and depression. During course of a days work, Salesperson interact with many pleasant people, while others may be rude and difficult to handle. 2. They Spend considerable after-hours time away from home, causing them to miss family life.

Salespersons Boundary Position

y The Sales person must satisfy the expectation of

people, both, within the company and also customer organizations. He has linkage with 4 groups: a. Sales management b. The company organization that handles order fulfillment c. Customers d. Other Company Sales Personnel

Role Conflict
y Conflict of Identification: As the salesperson works

with the customer, he identifies with the customer rather than the company. On returning to the company, he drops identification with the customer and identifies himself with the company y Advocacy Conflict: it arises when the salesperson identifies with the customer and advocates the customers position to other groups in the company organizaiton

Tendency Towards Apathy

y Salesperson require additional motivation to

maintain continuing enthusiasm to generate renewed interest in their work. The sales personnel who cover the same territory and virtually the same customers year after year lose interest and enthusiasm.

Maintaining a Feeling of Group Identity

y Working alone the salesperson finds it difficult to

develop and maintain a feeling of group identity with other company salespeople. Team spirit is weak.

Motivational theories addressing the issue: what motivates salespeople Need Hierarchy Theory Self-actualisation needs Esteem needs Belongingness needs Security needs Physiological needs
Physiological needs (e.g., basic salary); security needs (e.g., pension plan); belongingness needs (e.g., friends in work group); esteem needs (e.g., job title); self actualisation needs (e.g., challenging job).

Motivational theories addressing the issue: what motivates salespeople Two Factor Theory Motivation factors (e.g., achievement, recognition, responsibility) Hygiene factors (e.g., supervision, pay, job security, working conditions) The theory argues that: The motivation factors or motivators are the primary causes of motivation and address the question why work harder; The hygiene factors are necessary conditions to achieve a state of neutrality and address the question why work here.

Motivational theories addressing the issue: how do salespeople choose their actions? Expectancy Theory
Motivation is a function of a salespersons anticipation that a particular behaviour will lead to outcomes that s/he values.

Motivation = function of (Expectancy x Instrumentality x Valence)

Expectancy is the salespersons perception that a certain amount of effort will lead to successful performance (e.g., Can I do it?) Instrumentality refers to salespersons perception of the probability that performance will lead to certain outcomes or rewards (e.g., What do I get for doing it?) Valence is the perceived attractiveness or unattractiveness of an outcome or reward (e.g., How much do I value the reward?)

THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX

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Sales culture y Ceremonies and rites y Stories y Symbols y Language Basic compensation y Salary y Commissions y Fringe benefits Special financial incentives y Bonuses y Contests y Trips Nonfinancial rewards y Opportunity for promotion

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y Challenging work assignments y Recognition Sales Training y Initial y Ongoing y Sales meetings Leadership y Style y Personal contacts Performance evaluation y Method y Performance y Activity y Publicity

FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW MUCH EFFORT THEY WILL DEVOTE TO THEIR JOBS.

What Is the Probability of Success?

Will I Be Rewarded for Success?

Are the Rewards Worth It?

Are the Rewards Fair?

Motivation to Work

Performance Level

Rewards Intrinsic Extrinsic Feedback

Equity Determination Inputs vs. Outputs

Satisfaction Intrinsic Extrinsic

Motivating the Global Sales Force Salespeople are motivated by different needs.
Need for status (e.g., need for recognition and promotion) Need for control (e.g., need to be in control and influence others) Need for respect (e.g., need to be seen as experts who can give advice) Need for routine (e.g., need to follow a routine that must not be interrupted) Need for accomplishment (e.g., need more money and challenges) Need for stimulation (e.g., need to seek outside stimulation and challenges) Need for honesty (e.g.,need to believe in the rightness of their practices)
(Smyth and Murphy, 1969)

Motivating the Global Sales Force Motivational tools Motivational tools should satisfy at least two criteria.
a) Should generate extra effort that will help the company to achieve its objectives , and b) Must increase job satisfaction among salespeople.

Motivational tools include, but are not limited to: Sales meetings; Incentive programs (e.g., sales contests and competitions) Recognition programs (e.g., praise, promotion, extra responsibilitie

Motivating the Global Sales Force

Motivation, job satisfaction, and performance Job satisfaction refers to all characteristics of the job itself and the work environment which salespeople find rewarding, fulfilling, and satisfying. Job satisfaction can be felt by anticipating a desired outcome, or by accomplishing a certain level of performance and/or receiving a reward. Job satisfaction, motivation and performance are closely related. It is important to remember that global salespeople may be satisfied by different outcomes and rewards.

CONCLUSION:
Motivation is an inner force that drives and directs behaviour. Motivation theories answer questions pertaining to what motivates salespeople and how salespeople choose their actions. Culture influences motivation through its influence on salespeoples values, attitudes and norms. Sales managers have a range of motivational tools at their disposal. Cultural differences among salespeople should be taken into consideration when designing a motivational program. Motivation, job satisfaction and performance are inextricably related.