CHAPTER 13 MOTIVATING THE SALESFORCE

MOTIVATION Motivation is the desire to expend effort to fulfill a need. In terms of sales, it is the effort salespeople want to make toward various aspects of their jobs.

IMPORTANCE OF MOTIVATION Unique nature of sales positions Individuality Diversity of company goals Changes in market conditions

BEHAVIORAL CONCEPTS The process begins with an aroused need Three conditions must be met –rewards must be desirable –gaining rewards is based on performance (standards have been enunciated) –performance goals are attainable

CAREER STAGES Exploration Establishment Maintenance Disengagement

THEORIES OF MOTIVATION Maslow’s Hierarchy of Needs Herzberg’s Motivator/Hygene Theory McClelland’s Three Needs Theory Equity Theory Expectancy Theory

MASLOW’S HIERARCHY OF NEEDS Physiological Safety Social Esteem Self Actualization

MASLOW’S HIERARCHY OF NEEDS These needs can be satisfied with intrinsic and extrinsic rewards. Extrinsic rewards are provided by others Intrinsic rewards are come from the task itself

MOTIVATOR/HYGENE THEORY Hygene factors (sources of dissatisfaction) Motivators (sources of satisfaction) Is “pay” a motivator or a hygene factor?

THREE NEEDS THEORY Achievement (nAch) Power (nPow) Affiliation (nAff)

EQUITY THEORY Compare my efforts and rewards to another’s efforts and rewards

EXPECTANCY THEORY “The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual”

EXPECTANCY THEORY EFFORT PERFORMANCEREWARDS InstrumentalityExpectancy Attractiveness

EXPECTANCY THEORY Attractiveness –importance one places on reward Instrumentality (Performance/Reward Link) –belief that performance will lead to reward Expectancy (Effort/Performance Link) –perception that exertion of effort will lead to performance

EXPECTANCY THEORY IMPLICATIONS Do salespeople value the rewards? Are the rewards equitable? Greater rewards should be tied to greater performance Management must provide tools for salespeople to perform

MOTIVATING SALESPEOPLE Recruit “matches” Incorporate individual needs Provide job information and training Build self-esteem Be proactive in dealing with problems Build strong communication lines Understand the job

SPECIFIC MOTIVATORS Compensation plan Job enrichment Recognition Encouragement and praise Sales meetings Sales contests Quotas

COMPENSATION PLAN Financial rewards (salary, commission, bonus, etc.) Non-financial rewards

JOB ENRICHMENT Provide responsibility and authority to make decisions

RECOGNITION Plaques, pins, certificates Honor clubs

ENCOURAGEMENT AND PRAISE Inexpensive yet effective!

MEETINGS A communication tool Planning is important

SUCCESSFUL SALES CONTESTS Reward more than one person Set realistic goals Vary the goals from one contest to the next Vary the prizes from one contest to the next Publicize rules

QUOTAS Help motivate salespeople Direct where to put effort Provide standards for evaluation

QUOTA TYPES Sales volume Profit based Activity Expense

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