Dr. Bea Bourne 1

2 If you have any troubles in seminar, please do call Tech Support at: They can assist if you get “bumped” from the seminar room or experience other difficulties.

 This unit focuses on: ◦ In Unit 8, we review sales management and leadership issues as well as reward systems for sales staff within the organization. ◦ Questions 3

 Complete the Unit Reading  Review Key Terms  Respond to the Discussion Board  Attend the Weekly Seminar or Complete the Alternate Assignment  Respond to the Web Field Trip Discussion  Complete the two Unit Projects  Keep working on your Final Project due in Unit 9  Check course announcements and Kaplan e- mail 4

 Last week we focused on Sales training as a crucial investment by the organization to increase performance and job satisfaction.  The sales training process includes assessing needs, setting objectives, evaluating alternatives, designing the training program, performing training, and evaluating the effectiveness of training. 5

 Salespeople operate in a highly dynamic, stressful environment outside of the company. As we have already seen in Chapter 6, there are many factors that influence the salesperson's ability to perform. One of the most critical factors is motivation. It is very important that sales managers understand the process of motivation and be able to apply it to each individual in the sales force in such a manner as to maximize his or her performance potential.   Unfortunately, many firms are not successful in developing systems or programs that are appropriate for the marketing challenges they face and the kinds of people they employ. Consequently, their salespeople are either under motivated or stimulated to expend too much time and effort on the wrong tasks and activities. In either case, sales effectiveness and productivity suffer. 6

 By the end of this unit, you should be able to: Distinguish effective sales leadership and management skills  Explain how effective leaders tailor their style and approach to the needs of their subordinates.  Discuss variables that affect leadership in an organization  Explain influence strategies used in leadership  Explain the critical elements of motivation: intensity, persistence, and direction  Explain the main differences between compensation and noncompensation rewards systems for sales personnel  Describe salary, commission, and combination pay plans for salespeople  List and discuss key guidelines for motivating and rewarding salespeople in achieving organizational sales goals  Understand the effective use of sales contests, as well as the potential pitfalls of their use.  Identify key nonfinancial rewards, and how and why they might be important. 7

 How would you define motivation ? 8

9 Under motivation there are three areas in which to focus: intensity, direction and persistence. Intensity is the amount of mental and physical effort put forth. Direction is the extent to which an individual determines and chooses efforts and Persistence is the extent to which the goal-directed effort is put forth. These are all things that drive a salesperson to actually get out there and sell.

10 Victor Vroom's expectancy theory posits that motivation is a result of a rational calculation. A person is motivated to the degree that he or she believes that: effort will yield acceptable performance, performance will be rewarded, and the value of the rewards is highly positive. The interactive combination of all three influences motivation. Expectancy theory Expectancy (performance relationships) Instrumentality (outcome relationships) Valence (desirability of work outcomes) Expectancy Theory

 The amount of effort the salesperson desires to expend on each activity or task associated with the job—the individual’s motivation—can strongly influence job performance. This chapter reviewed the factors that affect an individual’s motivation level.  The chapter suggested an individual’s motivation to expend effort on any particular task is a function of that person’s (1) expectancy, (2) instrumentality, and (3) valence perceptions. 11

Expectancy Theory  Expectancy refers to the salesperson’s estimate of the probability that expending a given amount of effort on some task will lead to improved performance on some dimension.  Expectancies have two dimensions that are important to sales managers—magnitude and accuracy. 12

13 What is the difference between intrinsic and extrinsic?

 When we talk about sales, intrinsic is motivation from within.  Extrinsic is being motivated be something such as pay or perks. 14

15  There are two categories of rewards to think about.  First is compensation.  Second is non-compensation.

What are some types of sales force rewards? 16

What are some advantages and disadvantages of getting paid on a straight salary plan? 17

 Here are some commission plans to think about commission base, commission rate, commission splits, and commission payout events.  Please review the different commission plan variations in your ebooks. 18

19 What are your thoughts about performance bonuses? Advantage and disadvantages? What about non-financial compensation? How do you think that works? Performance bonuses

20 What makes a good manager?

 These questions were listed in the Seminar section of our Unit. Think about the skills, talents, attitudes, style of management, and other factors that you admire/notice within your current or past organizations that are exhibited by sales management.  How do good managers handle difficult situations?  Can you cite an example?  How do they motivate effectively on an everyday basis? 21

22 Complete Project 1 In this Unit, you read Chapter 7 and 11. Now you will apply that knowledge. Go to Chapter 7(MT455_Reading_Chapter7.pdf) page 239, Leadership Challenge: What Have You Done for Me Lately? Read Leadership Challenge: What Have You Done for Me Lately? Answer the three questions at the end of the case. You are Terri Ann Masters. What would you do about Jason Benjamin? What would you do with these younger salespeople who are looking for new opportunities inside the company? Offer ideas on why Jason’s performance might have slipped after all these years with the company? Assignment Checklist: Evaluate the differences between leadership and management skills Determine how sales force socialization can be enhanced through management and leadership Determine how effective leaders tailor their style and approach to the needs of their subordinates.

Complete Project 2  In this Unit, you read Chapter 11. Now you will apply that knowledge. Go to page 351 to find Leadership Challenge: One for All, All for One.  Answer the three questions at the end of the case.  As a CSR, what do you think is a fair solution to the compensation problem?  As a salesperson, what do you think is a fair solution to the compensation problem? How could this contest be designed to have a better chance of success?  You are Danielle. What would you do about the compensation system at Dynamic Printing and why?  Assignment Checklist:  Relate the differences between sales organization effectiveness and salesperson performance in meeting organizational objectives  Demonstrate how to develop a productivity analysis for a sales force  Show the different uses and development of salesperson performance evaluations  Directions for Submitting Your Project  Before you submit your project, you should save your work on your computer in a location and with a name that you will remember. Make sure your project is in the appropriate format (Word, Excel, PowerPoint, or other), then, when you are ready, you may submit on the Dropbox page. 23

24 How is the Final Project coming along?

 I appreciate your time and attention during our 1 hour seminar today. If you have questions, feel free to contact me: and I’ll be happy to help!  See you in Class! 25