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Motivation Powered By Docstoc

       Professor Chip Besio
        Sales Management
         Marketing 3345
What is Motivation??

• Drive to initiate an action.

• The intensity of effort in an


• The persistence of effort over

  Why the concern              What are the
  for sales force              different theories
  motivation?                  of motivation?

                      Motivation Tools

 Self-              Quotas               Incentive   Recognition
management                               programs     programs
 Why is Motivation
• Frequent rejection
• Physical separation from
 company support
• Direct influence on quality of sales
• Indirect influence on performance
Steps to Greater
Personal Motivation

1.   Define what you want.
2.   Inform a special person of your
3.   Do something.
4.   Don’t let failure deter you.
5.   Break down problems into pieces.
6.   Set deadlines.
7.   Turn work into play.
8.   Associate with people who motivate
 Sales Force Needs   Company Actions to Fill Needs

 Status              Change title from “salesperson” to
                     “area manager.”
                     Buy salespeople more luxurious cars
                     to drive.

 Control             Allow salespeople to help plan sales
                     quotas and sequences of calls.

 Respect             Invite salespeople to gatherings of
                     top executives.
                     Put pictures of top salespeople in
                     company ads and newsletters.

                     Assign each salesperson a core of
 Routine             loyal customers that are called on

Sales Force Needs and Ways to Fill
  Sales Force Needs   Company Actions to Fill Needs

  Accomplishment      Set reasonable goals for the
                      number of calls and sales.

  Stimulation         Run short-term sales contests.
                      Schedule sales meetings in
                      exotic locations.

  Honesty             Deliver promptly all rewards
                      and benefits promised.

Sales Force Needs and Ways to Fill

                          Intense job challenge, full potential, full
     Self-Actualization   expression, creative expansion.

                          Achievement, respect, recognition, responsi-
       Self-Esteem        bility, prestige, independence, attention,
                          importance, appreciation.
                          Belonging, acceptance, love, affection, family
                          and group acceptance, friendships.

                          Security, stability, dependency, protection,
                          need for structure, order, law, tenure, pension,

       Physiological      Hunger, thirst, reproduction, shelter, clothing,
                          air, rest.

                           Motivation and Personality, Abraham Maslow, 1970

To perform the exercise, read through the following
  statements…check those which are most important in
  motivating you to do your best work.
Select the ten most important statements.

629   Job security
847   Being trusted to do my job the way I think it should
      be done.
333   Participating in work group conversations.
311   Having adequate shelter to protect from the
836   Having a job which allows me time with my family.
151   Having an opportunity for personal growth.
937   Socializing with my friends.
743   Being considered for an advancement opportunity.
431   Working with other people.
Select   the ten most important statements. (Cont’d.)
819      Having children.
458      Doing something meaningful with my life.
757      Being in a position to contribute new ideas.
828      Having an associate that looks out for my interests.
735      Including other people in what I do.
949      Being selected for an exclusive award.
234      Being involved with work associates in social and
         recreational activities.
616      Being sexually satisfied.
146      Having a responsible person tell me when I’ve
         done a good job.
539      Having an active part in work related social
341      Knowing that other people respect me and my
132      Acceptance as a work group member
Determining Your
Motivational Needs
Second Number to left of statement
 indicates the category; how many in
 Number           Category
    1             Physiological
    2             Safety - Security
    3             Love - Belonging
    4             Self Esteem
    5             Self Actualization

To determine results: the statements
 are divided into five categories
 intended to represent the five levels
 in Maslow’s Hierarchy of Needs. The
 second digit in each statement
 number indicates the category.
These categories are: 1-Physiological,
 2-Safety-Security, 3-Love-Belonging,
 4-Self-Esteem, 5-Self-Actualization.
Maslow’s Hierarchy –
U.S. Salespeople’s Responses

    Number       Percent
       847       86%
       341       74%
       757       54%
       431       51%
       828       37%
       458       37%
       743       34%

 Maslow’s            Related
 Hierarchy           Sales Force
 of Needs            Motivators
 Self-               Challenging tasks
 actualization       calling for creativity

 Esteem              Recognition programs

 Belonging           President’s Club $1 mil.

 Safety & security   Job security & fringes

 Physiological       Cash wages & bonuses
Chinese Culture Hierarchy of Needs

                       in service to



                 Affiliation (belonging)
     What Makes Great Salespeople?
                  The Competitor

       This person not only wants to win, but derives
satisfaction from beating specific rivals -- another
company or even colleagues. They tend to verbalize
what they are going to do, and then do it.

                  The Ego-driven

      They are not interested in beating specific
opponents, they just want to win. They like to be
considered experts, but are prone to feeling slighted,
change jobs frequently, and often take things too
       What Makes Great Salespeople?

                  The Achiever

      This type of person is almost completely self-
motivated. They usually set high goals and as soon as
they hit one goal, they move the bar higher. They like
accomplishment, regardless of who receives the credit.

                  The Service-oriented

       Their strengths lie in building and cultivating
relationships. Winning is not everything to this person,
but they do respond to feelings of gratitude and
friendship from other people.
         Role Perceptions
• Sales is a boundary spanning position –
  you must be responsive to expectations
  of multiple people.
                       Sales         Customers         Family

                   Salesperson’s Role Perceptions
 • Expectations:       What do others expect me to do?
 • Ambiguity:          How sure am I about what others expect?
 • Accuracy:           Is what I think what they really expect?
 • Conflict:           Does meeting expectations of one person
                       mean not meeting the expectations of
 Role Perceptions

• Typical Sales Job Activities
• Where is their potential for the
       −Lack of Accuracy
   Typical Sales Job Activities

Job Dimension                                       Activities

SELLING FUNCTION                         Plan Activities      Prepare Presentations
                                         Develop leads        Make Presentations
                                         Prospecting          Overcome Objections
                                         Identify Decision-   Introduce New Products

WORKING WITH ORDERS                      Write orders
                                         Find last orders
                                         Expedite orders      Handle shipping
                                         Handle back          problems

PRODUCT SERVICING                        Learn about         Train customers
                                         Test equipment     Supervise repairs
                                         Supervise Perform maintenance

MANAGING INFORMATION                     Receive feedback     Provide technical
                                         Provide feedback     information

Source: Adapted from William C. Moncrief, “Selling Activity and Sales Position Taxonomies
   for Industrial Sales Force,” Journal of Marketing Research, August, 1996), pp. 266-67.
Typical Sales Job Activities
Job Dimension                            Activities

SERVICING THE ACCOUNT                    Stock shelves        Count inventory
                                         Set up displays      Promote local

ATTENDING CONFERENCES                    Sales                Product exhibitions
                                         conferences          Training sessions
                                         Client conferences

TRAINING/RECRUITING                      Recruit new reps     Train new reps
                                         Travel with trainees

ENTERTAINING                             Parties              Dinner
                                         Drinks               Lunch

TRAVELING                                Out-of-Town          In-Town

DISTRIBUTION                             Sell through         Train
                                         Establish Credit processing

Source: Adapted from William C. Moncrief, “Selling Activity and Sales Position
   Taxonomies for Industrial Sales Force,” Journal of Marketing Research, August,
   1996), pp. 266-67.
Career Stages
• Does everyone go through these
• What can be done to address the
 concerns of management at each
• How can sales managers address
 the management concerns at each
 Career Stages

                Exploration      Establishment     Maintenance       Disengagement
Career Concerns Finding an       Successfully      Holding on to     Completing
                appropriate      establishing       what has been       one’s
                occupational     a career in a      achieved;           career.
                field.           certain            reassessing career,
                                 occupation.        with possible

Motivational    Learning the      Using skills to  Developing        Establishing a
Job Related      skills required   produce results. broader view of   stronger self-
                 to do            Adjusting to      work and          identity
                 the job well.     working with     organization.     outside
                Becoming a         greater         Maintaining a high of work.
                 contributing      autonomy.        performance      Maintaining an
                 member of                          level.            acceptable
                 an organization.                                     performance

Career Stage Characteristics
Career Stages

                Exploration       Establishment        Maintenance        Disengagement

Personal        Establishing a    Producing superior   Maintaining         Acceptance of
Challenges       good initial      results on the      motivation,          career
                 professional      job in order to     though               accom-
                 self-concept.     be promoted.        possible rewards     plishments.
                                                       have changed.
                                                       Facing concerns
                                                        about aging.

Psychological   Support           Achievement          Reduced             Detachment
Needs           Peer Acceptance   Esteem               competitiveness      from the
                Challenging       Autonomy             Security             organization
                position          Competition          Helping younger      and organi-
                                                       colleagues           zational ife.

Career Stage Characteristics
Career Stage Research
Job Satisfaction and Career Concerns
200 Salespeople -- Large Industrial
 • all are least satisfied with promotion & pay
 • pay satisfaction is only dimension on which
   exploration sales people are more satisfied than
   establishment or maintenance salespeople
 • maintenance salespeople are less satisfied with
   supervision than are establishment salespeople
Career Stage Research
Career Concerns and Age
200 Salespeople -- Large Industrial
  • Note proportion of people in each stage

  • Note overlap in ages of people in each stage
  • Disengagement as well as maintenance occurs quite
    early for some people --

     Is this a management concern?
Relationship Between Career
Concerns and Age

                                         Age Range
               Proportion of   20   30   40          50   60   65
 Career Concerns Sales Force

 Exploration       14%

 Establishment     29%

 Maintenance       42%

 Disengagement     15%
     Sales                              60%
   volume                             55%
                                         Large firms’
                                         Bar 2
                            32%          Sales >$40M
     based           14%                 Small firms’
                                         Sales < $40M
                                         Bar 1

   Activity          14%

               0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Use of the Various Types of Quotas
Quotas & Reasons
for Use
1. Help motivate salespeople
2. Direct where to put effort
3. Provide standards for evaluation.
  a. Sales volume in dollar or point system
      • Points allow for different weights for different important
        products independent of price.
      • Points not affected by inflation.
      • Sales quota may be developed for:
         − Total territory sales, and/or
         − Individual product or product group.
Quotas & Reasons
for Use
2. Profit-based quotas are rarely
   based on bottom line profits
  • Difficult to account for indirect expenses
  • Profits are usually configured as gross margins minus
    some load factor
3. Activity-based quotas are based on activities
  directly related to sales volume
  • More directly under control of the salesperson
  • Biggest problem is falsification of call reports
  • Issue of quantity vs. quality of activity?
Incentive Programs
• What is difference from regular
  compensation such as commission?
• Key decisions
  •   Goals          -- Rules
  •   Timing         -- Awards
  •   Participants   -- Publicity
  •   Theme          -- Cost

• What is difference between
  Incentive and Recognition programs
Types of Incentive Awards
Used by 168 Firms

                        Percentage of
 Type of Award          Firms Using

 Cash                             59
 Selected Merchandise             46
 Merchandise Catalog              25
 Travel                           22
Giving Status to

1. Compensation -- exceed first-line managers
2. Job Title -- no cost but considerable payback
3. Company Car Upgrade -- salespeople spend
   much time in car - reminds them of their value.
4. Car Phone -- justified on a purely business basis
5. Field Sales Council -- meet president for 1/2 day open-
   ended discussion on field marketing conditions - report
   back to field meetings the results
6.Outside Secretarial Support -- or more exclusive central.
7. Published Success Stories -- high form of recognition
8. Task Force Assignments -- e.g., review of all paperwork.

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