Professor Chip BesioSales Management

Marketing 3345

MOTIVATIONMOTIVATION

What is Motivation??

• Drive to initiate an action.

• The intensity of effort in an action

• The persistence of effort over time.

Why the concernfor sales forcemotivation?

Why the concernfor sales forcemotivation?

What are thedifferent theoriesof motivation?

What are thedifferent theoriesof motivation?

Motivation Tools

Self- Quotas Incentive Recognition management programs programs

Motivation Tools

Self- Quotas Incentive Recognition management programs programs

•Frequent rejection

• Physical separation from

company support

• Direct influence on quality of sales presentation

• Indirect influence on performance

Why is Motivation Important?

Steps to Greater Personal Motivation

1.Define what you want.2.Inform a special person of your goals.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

you.

Sales Force Needs and Ways to Fill Them

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

regularly.

Sales Force Needs and Ways to Fill Them

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.

MASLOW’S HIERARCHY OF NEEDS

Self-Actualization

Self-Esteem

Love-Belonging

Safety-Security

Physiological

Intense job challenge, full potential, full Intense job challenge, full potential, full expression, creative expansion.expression, creative expansion.

Achievement, respect, recognition, responsi-Achievement, respect, recognition, responsi-bility, prestige, independence, attention, bility, prestige, independence, attention, importance, appreciation.importance, appreciation.

Belonging, acceptance, love, affection, familyBelonging, acceptance, love, affection, familyand group acceptance, friendships.and group acceptance, friendships.

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

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

Motivation and Personality, Abraham Maslow, 1970

AN EXERCISE TO DETERMINE YOUR MOTIVATIONAL NEEDS

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 elements.

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.

AN EXERCISE TO DETERMINE YOUR MOTIVATIONAL NEEDS

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

activities.341 Knowing that other people respect me and my work.132 Acceptance as a work group member

Determining Your Motivational NeedsSecond Number to left of statement indicates

the category; how many in each:Number Category

1 Physiological2 Safety - Security3 Love - Belonging4 Self Esteem5 Self Actualization

YOUR SCORE

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.

Number Percent

84786%34174%75754% 43151%82837%45837%74334%

Maslow’s Hierarchy – Maslow’s Hierarchy – U.S. Salespeople’s ResponsesU.S. Salespeople’s Responses

INDIVIDUAL NEEDS

Maslow’s RelatedHierarchy Sales Forceof 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

Self-actualizationin service to

society

Safety

Physiological

Affiliation (belonging)

Chinese Culture Hierarchy of NeedsChinese Culture Hierarchy of Needs

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 personally.

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.

• Sales is a boundary spanning position –you must be responsive to expectations of multiple people.

Company SalesManager

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 another?

Role PerceptionsRole Perceptions

• Typical Sales Job Activities• Where is their potential for the

following:−Ambiguity−Lack of Accuracy−Conflict

Role PerceptionsRole Perceptions

Job Dimension Activities

SELLING FUNCTION Plan Activities Prepare PresentationsDevelop leads Make PresentationsProspecting Overcome ObjectionsIdentify Decision- Introduce New ProductsMakers

WORKING WITH ORDERS Write ordersFind last ordersExpedite orders Handle shippingHandle back problems orders

PRODUCT SERVICING Learn about Train customersproductTest equipment Supervise repairsSupervise Perform maintenanceinstallation

MANAGING INFORMATION Receive feedback Provide technicalProvide 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 ActivitiesTypical Sales Job Activities

Job Dimension Activities

SERVICING THE ACCOUNT Stock shelves Count inventorySet up displays Promote local

advertising

ATTENDING CONFERENCES Sales Product exhibitions

conferences Training sessions

Client conferences

TRAINING/RECRUITING Recruit new reps Train new repsTravel with trainees

ENTERTAINING Parties DinnerDrinks Lunch

TRAVELING Out-of-Town In-Town

DISTRIBUTION Sell through TrainEstablish Credit processingrelationships

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 ActivitiesTypical Sales Job Activities

Career Stages

• Does everyone go through these

stages?

• What can be done to address the

concerns of management at each

stage?

• How can sales managers address the

management concerns at each stage?

MotivationMotivation

Career Stage Characteristics

Exploration Establishment Maintenance DisengagementCareer 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 redirection.

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 level.

Career Stages

Career Stage Characteristics

Exploration Establishment Maintenance Disengagement

Personal Establishing a Producing superior Maintaining Acceptance ofChallenges 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 Stages

Career Stage Research Findings Job Satisfaction and Career Concerns 200 Salespeople -- Large Industrial

Organization: • 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

Findings

Career Concerns and Age

200 Salespeople -- Large Industrial

Organization:• 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

Proportion ofCareer Concerns Sales Force

Exploration 14%

Establishment 29%

Maintenance 42%

Disengagement 15%

Age Range20 30 40 50 60 65

S&MM Compensation Survey 2008

Use of the Various Types of Quotas

14%

14%

55%

28%

32%

60%

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

Bar 2

Bar 1

Large firms’Sales >$40M

Small firms’Sales < $40M

Sales volume

quota

Profit-based

quotas

Activityquota

Quotas & Reasons for Use1. Help motivate salespeople2. 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 Use2. 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 ofType of Award Firms Using

Cash 59Selected Merchandise 46Merchandise Catalog 25Travel 22

Giving Status to Salespeople

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.