Chapter 12 Motivating Sales People.ppt

Copyright © 2001 by Harcourt, Inc. All rights reserved.

DIRECTING THE

SALES TEAM


MOTIVATING SALESPEOPLE

TOWARD HIGH

PERFORMANCE


MMOTIVATIONOTIVATION

11 Understand what motivation is all about.Understand what motivation is all about.

22 Develop a high-performance sales cultureDevelop a high-performance sales culture

33 Know salespeople’s basic needs.Know salespeople’s basic needs.

44 Realize that salespeople want to know what Realize that salespeople want to know what

is in it for them.is in it for them.

The components of a motivational system:The components of a motivational system:


11 Get to know the personal side of salespersons.Get to know the personal side of salespersons.

22 Always remember that motivational coaching Always remember that motivational coaching is needed for high performance.is needed for high performance.

33 Be realistic about motivating salespeople.Be realistic about motivating salespeople.

The components of a motivational system:The components of a motivational system: continuedcontinued


UUNDERSTAND NDERSTAND WWHAT HAT MMOTIVATION OTIVATION IIS S AALL LL AABOUTBOUT

11 What What arousesarouses salespeople’s behavior? salespeople’s behavior?

22 What influences the What influences the intensityintensity of the behavioral of the behavioral arousal?arousal?

33 What What directsdirects the person’s behavior? the person’s behavior?

44 How is this behavior How is this behavior maintainedmaintained over time?over time?

In any discussion about the motivation of In any discussion about the motivation of salespeople, the following four questions need salespeople, the following four questions need to be considered:to be considered:


Motivation refers to the arousal, Motivation refers to the arousal, intensity, direction, and persistence of intensity, direction, and persistence of effort directed toward job tasks over a effort directed toward job tasks over a period of time.period of time.


THE SALES MOTIVATIONAL MIX

Motivational Mix – The arousal, intensity, direction, and persistence of people’s behavior.

Extrinsic Outcomes – Rewards obtained from individuals’ environment.

Intrinsic Outcomes – Occur purely from the performance of the task itself.


TABLE 12.1 THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX AND EXAMPLES OF EACH MOTIVATIONAL METHOD

1. Sales culture Ceremonies and rites Stories Symbols Language

Challenging work assignments Recognition

5. Sales Training Initial Ongoing

2. Basic compensation Salary Commissions Fringe benefits

Sales meetings 6. Leadership

Style Personal contacts

3. Special financial incentives Bonuses Contests Trips

7. Performance evaluation Method Performance Activity

4. Nonfinancial rewards Opportunity for promotion

Publicity


DEVELOP A SALES CULTURE

Sales culture refers to a set of key values, ideas, beliefs, attitudes, customs, and other capabilities and habits shared or acquired as a member of the sales group.


• Ceremonies and Rites

IMPLEMENTATION OF A SALES CULTURE


Ceremonies and rites are the elaborate, planned activities that make up a special event and often are conducted for the benefit of an audience.


• Ceremonies and Rites• Stories



Stories are narratives based on true events that are frequently shared among salespeople and told to new sales reps to inform them about the organization.


• Ceremonies and Rites• Stories• Symbols



A symbol is one thing that represents another thing.


• Ceremonies and Rites• Stories• Symbols• Language



Many companies use a specific saying, slogan, metaphor, or other language form to convey special meaning to employees.


CULTURE IMPLEMENTING CULTURE Shared Values Reward for performance Customer service at any cost Employees are part of family Attain sales targets Shared Beliefs Customer orientation We like this company We are a team The company cares about us Quality work life We are professionals

Shared Ceremonies Annual awards for meritorious customer

service Monthly meetings to acknowledge people

who attain 100% of sales targets Shared Stories Sales managers who make salespeople suc-

cessful; help with personal problems Heroic efforts to please customers by leg-

endary salespeople Shared Symbols and Slogans "Build bridges" to be in touch with

customers. "We don't stand on rank" (equality of

family.) Open offices for easy communication Special plaques for customer service and

sales leaders

TABLE 12.2 EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR IMPLEMENTATION WITHIN THE SALES FORCE


WHAT’S IN IT FOR ME?

Expectancy theory is based on the assumption that salespeople have expectancies about what they should receive from their employer as a result of their work efforts.


Expectancy is the salesperson’s estimate of the probability that expending a given amount of effort on a task will lead to an improved level of performance on some dimension.

WHAT IS THE PROBABILITY OF SUCCESS?


FIGURE 12.1 FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW MUCH EFFORT THEY WILL DEVOTE TO THEIR JOBS.

Motivation to Work

“What Is the Probability of Success?”

Performance Level

“Will I Be Rewarded for Success?”

Rewards Intrinsic Extrinsic

“Are the Rewards Worth It?”

Equity Determination Inputs vs. Outputs

“Are the Rewards Fair?”

Satisfaction Intrinsic Extrinsic

Feedback


The salesperson’s estimate of the probability that achieving an improved level of performance dimension will lead to increased attainment of a particular reward or outcome may be defined as instrumentality.

WILL I BE REWARDED FOR SUCCESS?


Valence for rewards refers to the value the salesperson places on the reward.

ARE THE REWARDS WORTH IT?


Managerial Implications of Expectancy Theory

1. Increase expectancies.

2. Make performance instrumental toward positive outcomes.

3. Identify positively valent outcomes.


If inequity is perceived, the salesperson may be motivated to restore equity using one of four methods.

ARE THE REWARDS FAIR?

• First, the salesperson may increase or decrease the level of input that may,

in turn, influence outcomes.

• Second, the salesperson could distort the facts by convincing himself or herself

that equity really does exist even though it may not.


If inequity is perceived, the salesperson may be motivated to restore equity using one of four methods. continued

• Third, the salesperson could choose another salesperson with whom to compare the

ratio of outcomes to inputs.

• Fourth, the salesperson could influence other salespeople to decrease the amount of

effort they are putting into their job.


HOW TO FACILITATE EQUITY

1. Sales performance did not increase.

2. No important rewards were given for meeting quota.

3. The rewards given for meeting quota were not worth the extra work.

4. Treatment was not fair because one person’s rewards were the same as another’s who worked harder.

An individual will tend to reduce the level of effort if one of these situations is encountered.


Job Satisfaction and Work Attitudes

Job satisfaction refers to feelings toward the job.

Job dissatisfaction, aggregated across many individuals, creates a sales force that is more likely to exhibit:

1. Higher turnover.

2. Higher absenteeism.

3. Lower corporate citizenship.

4. More grievances and lawsuits.

5. Stealing, sabotage, and vandalism.

6. Poorer mental and physical health.


Quality of Work Life

Categories:

1. Adequate and fair compensation.

2. A safe and healthy environment.

3. Jobs that develop human capacities.

4. A chance for personal growth and security.

5. A social environment that fosters personal identity, freedom from prejudice, a sense

of community, and upward mobility.


Quality of Work Life continued

6. Constitutionalism, or the rights of personal privacy, dissent, and due process.

7. A work role that minimizes infringement on personal leisure and family needs.

8. Socially responsible organizational actions.


The term productivity as applied by QWL advocates means much more than each person’s quantity of work output.

It also includes:• Levels of turnover• Absenteeism • Accidents • Thefts • Sabotage • Creativity • Innovation • Quality of work


Turnover refers to someone leaving their present job.

Voluntary Turnover


FIGURE 12.2 CLASSIFICATION OF TURNOVER

T erm inations

N onvo luntaryVo luntary

D esirab le (low p erfo rm er)

U nd esirab le (h igh perform er)

C ontro llab le U ncontro llab le


GET TO KNOW THE PERSONAL SIDE OF SALESPERSONS!

UNDERSTAND THE SALESPERSON’S

MOTIVATIONAL BEHAVIOR


MATCH PEOPLE’S MOTIVES WITH

INCENTIVES THEY VALUE

Incentives are aspects of the environment that appeal to the salesperson’s motives and have enough worth to motivate purposeful behavior to obtain them.


Incentives that motivate people to do their best are high motivators.

Examples of high motivators:• Rewards for successes• Recognition for achievement• Job advancement• Freedom to manage oneself• Training and sales meetings• Leadership• Performance evaluation• Incentive compensation plans


Incentives that motivate little or not at all or, if incentives are absent, that demotivate are low motivators.

Examples of low motivators:

• Company policy and procedures• Fringe benefits• Retirement programs• More supervision


Sales managers would do well to explore different aspects of incentives. Several things to consider are:

• Some salespeople like material incentives versus nonmaterial incentives.

• The attraction to short-range incentives versus long-range incentives.

• Positive incentives in most instances motivate more successfully than negative

incentives.


Motivate the Team

Six keys to managing a successful incentive program:

• Identify the business goal you hope to target.

• Communicate the business needs to your salespeople.

• Listen to your salespeople.

• Make sure the goals are reachable.

• Don’t repeat the same programs over and over.

• Don’t try to do everything at once.


MOTIVATIONAL COACHING IS

NEEDED FOR HIGH-

PERFORMANCE RESULTS

SALESPEOPLE HAVE BOUNDARY POSITIONS

Salespeople are involved in meeting both the needs of their customers and the needs of their company.


Salespeople experience role ambiguity when they do not possess the information necessary to adequately perform their jobs.

Salespeople experience role conflict when conflicting, inconsistent, or incompatible job demands occur from two or more people.


FIGURE 12.4 ROLE PERCEPTIONS INFLUENCE PERFORMANCE

Sales M an ager

F am ily

C usto m ers

C o m p an y

R o le A m b iguity

R o le C o n fl ict

E ff o rt P erfo rm an ce


Motivational TECHNIQUES

Teach teamwork

Empower

Communicate

Hear

Notice

Initiate integrity

Query

Unify

Exalt

Set standards


THE BOTTOM LINE

To achieve company and individual objectives, salespeople need to be motivated.

The first component involves an understanding of the motivational concept.

The second component in a motivational program is a high-performance sales culture.

Salespeople have basic needs that influence behavior and lead to goal attainment.


THE BOTTOM LINE

A realization that salespeople want to know “what’s in it for them” is the fourth component.

Knowing the theory of motivation is not enough.

Proper motivational coaching is the sixth component of the motivational program.

Being realistic about motivating salespeople is the final part of the program.

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Chapter 12 Motivating Sales People.ppt