1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 8 Motivating a Sales Force I believe I can fly, I believe I can touch the sky! R. Kelly, Space Jam

2. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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.

3. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Fig. 8-2 Motivational Conditions Are the rewards worth the effort? Does more effort lead to better performance? GREATER EFFORT The same or less effort NO YES Does better performance lead to greater rewards?

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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.

5. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Hertzberg’s Dual-Factor Theory HYGIENE FACTORSMOTIVATION FACTORS pay company policies supervision conditions work recognition responsibility challenge growth opportunities

6. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. 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 Fig. 8-5 Salespeople’s Perceived Reasons for Failure and Their Motivational Impact

7. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Career Stages Exploration 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 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 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 Primary concern is preparing for retirement and/or developing outside interest Low valence for higher order and lower order rewards Low instrumentality

8. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Sales Contest Design Elements Equally Attainable Goals Attractive Variety of Prizes Sales Contest Design Promote & Publicize

9. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Causes of Plateauing 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