1. Motivating a Sales Force
Chapter 8

2. Learning Objectives What is motivation?
Behavioral concepts in motivation
Maslow’s hierarchy of needs
Dual-factor theory
Expectancy theory
Financial and nonfinancial rewards

3. What is motivation? The desire to put on effort to fulfill a need.
In sales job – motivation is the effort salesperson wants to make to complete various aspects of their jobs.

4. MOTIVATION IS THE CHOICE OF AN INDIVIDUAL TO…
1. Initiate action on a certain task … choice;
2. Expend a certain amount of effort on that task … intensity;
3. Persist in expending effort over a period of time … persistence.
The amount of effort the sales person desires to expend on each activity associated with the job.
Motivational effort includes three dimensions: intensity, persistence, and choice.

5. Dimensions of Sales Motivation
Intensity – refers to the amount of effort the salesperson expends on a given task (Example, hours or days spend).
Persistence – refers to how long the salesperson will continue to put forth effort (Example, until he or she gets the first client or order).
Choice – refers to the salesperson’s choice of specific actions to accomplish job-related tasks. (Example, focus on a particular customer or region).

6. Fig. 8-2 Motivational Conditions
Does better performance lead to greater rewards?
Are the rewards worth the effort?
YES
YES
Does more effort lead to better performance?
YES
GREATER EFFORT NO NO NO
The same or less effort

7. Motivational Conditions-cont.
The motivational process begins with an aroused need. Three conditions must exist before an unfulfilled need leads to enhanced sales performance.
First, salesperson must feel that the reward’s are desirable.
Second, they must believed that the rewards are tied to performance.
Third, sales reps must believe that the performance goals on which the rewards are based are attainable/achievable.

8. Behavioral Concepts in Motivation
Managers must know what salesperson’s needs are before developing motivational programs.
Four motivational theories offer classification systems that can help managers recognize and understand different kinds of needs: Maslow’s hierarchy of needs theory, Hertzberg’s dual-factor theory, expectancy theory, and role theory.

9. Fig 8-3 Maslow’s Hierarchy of Needs…
Fulfilled through:
Self-development,
Managerial actions:
Provide/offer advanced
training, assignments to special
projects, more responsibility and
authority.
Fulfilled through: Status, recognition.
Managerial actions: Recognize sales rep achievements
personally and publicly through title changes, commendation
letters, promotions.
Fulfilled through: Affiliation, friendship, acceptance.
Managerial actions: Use team selling, hold social functions, distribute
employee newsletters, hold sales meetings, mentoring.
Fulfilled through: Job security, safety, income security.
Managerial actions: Provide safe work environment, set mutually agreed-upon
performance standards, communicate job performance expectations and consequences
of failure to perform.
Fulfilled through: Food, shelter, clothing, health care.
Managerial actions: Provide/offer adequate income and good benefits package.
Safety needs
Social needs
Physiological needs
Esteem needs
Self-actualization needs
challenge.

10. Hertzberg’s Dual-Factor Theory
HYGIENE FACTORS
MOTIVATION FACTORS
pay
company policies
supervision conditions
work
recognition
responsibility
challenge
growth opportunities

11. Hertzberg’s Dual-Factor Theory-cont.
Called hygiene factors because they deal with the condition of the work environment rather than the work itself.
Motivation factors are part of the job itself and are called motivation factors because they must be present for the person to feel motivated.
Pay can be both a hygiene and a motivation factor.

12. Expectancy Theory
Based on the idea that needs provide the starting point for understanding an individual’s motivation.
Conditional links:
Reward/effort-equity theory
Performance/reward
Effort/performance

13. Fig. 8-5 Salespeople’s Perceived Reasons for Failure and Their Motivational Impact
Perceived reasons Positive Negative
Ability Seek help; get Become frustrated additional training; and discouraged; ask for supervisor’s give up assistance; increase effort
Effort Work harder; make No change in behavior more calls; work longer hours
Strategy Change selling No change in behavior strategy; adapt the presentation
Task difficulty Work harder; Become frustrated change strategies; and discouraged; or seek help give up
Luck No change in behavior Avoid the situation

14. Salesperson Characteristics
Salesperson’s needs, evaluation of rewards, and their perceptions of the conditional links described above are influenced by the personal characteristics such as demographics, psychological traits and experience.

15. Career Stages
Salespeople’s needs change as they progress through their careers
Exploration (very achievement oriented)
Primary concern is finding a suitable occupation
Underdeveloped skills and knowledge
Many drop out or are terminated
Low expectancy instrumentality, high valence for personal growth
Establishment (committed and striving to succeed)
Primary concern is improving skills and performance
Lack of promotion may cause disengagement or quitting
New commitments make pay important
High expectancy instrumentality, high valence for promotion and pay
Maintenance (valuable to company)
Primary concern is maintaining position, status, and performance
Have highest sales volumes and percentage of quota and pay
High valence for recognitions, respect, and pay
Low valence for promotion
Disengagement (preparing for retirement)
Primary concern is preparing for retirement and/or developing outside interest
Withdrawing psychologically
Lose interest in their job

16. Financial Rewards and Nonfinancial Rewards.
Compensation – money is often used as an incentive for salesperson. Sixty-nine percent companies surveyed use cash as an incentive.
Other-financial rewards – merchandise and travel (Lexmark, Panasonic). Experience-based incentives (learned to pilot the shuttle – NASA space camp).
Sales Contests (short-term incentive programs that use prizes and awards to motivate).
Nonfinancial rewards – job enrichment (increases in responsibility), recognition and honor awards.

17. Sales Contest Design Elements
Equally Attainable Goals
Attractive Variety of Prizes
Sales Contest Design
Promote & Publicize

18. Causes of Plateauing (stopped improving and developing)
No clear career path
Not managed adequately
Bored
Burned out
Economic needs met
Discouraged with company
Overlooked for promotion
Lack of ability
Avoiding risk of management job
Reluctance to be transferred