MOTIVATION

Professor Chip Besio Sales Management Marketing 3345

What is Motivation??
Drive to initiate an action. The intensity of effort in an

action
The persistence of effort over time.

Why the concern for sales force motivation?

What are the different theories of motivation?

Motivation Tools
Selfmanagement Quotas Incentive programs Recognition programs

Why is Motivation Important?

Frequent rejection
Physical separation from company support Direct influence on quality of sales presentation

Indirect influence on performance

Steps to Greater Personal Motivation

1. 2. 3. 4. 5. 6. 7. 8. Define what you want. Inform a special person of your goals. Do something. Dont let failure deter you. Break down problems into pieces. Set deadlines. Turn work into play. Associate with people who motivate you.

Sales Force Needs Status

Company Actions to Fill Needs Change title from salesperson to area manager. Buy salespeople more luxurious cars to drive. Allow salespeople to help plan sales quotas and sequences of calls.

Control

Respect

Invite salespeople to gatherings of top executives. Put pictures of top salespeople in company ads and newsletters.
Assign each salesperson a core of loyal customers that are called on regularly.

Routine

Sales Force Needs and Ways to Fill Them

Sales Force Needs Accomplishment Stimulation

Company Actions to Fill Needs Set reasonable goals for the number of calls and sales. Run short-term sales contests. Schedule sales meetings in exotic locations. Deliver promptly all rewards and benefits promised.

Honesty

Sales Force Needs and Ways to Fill Them

MASLOWS HIERARCHY OF NEEDS

Self-Actualization

Intense job challenge, full potential, full expression, creative expansion. Achievement, respect, recognition, responsibility, 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, insurance. Hunger, thirst, reproduction, shelter, clothing, air, rest.
Motivation and Personality, Abraham Maslow, 1970

Self-Esteem

Love-Belonging Safety-Security

Physiological

AN EXERCISE TO DETERMINE YOUR MOTIVATIONAL NEEDS

To perform the exercise, read through the following statementscheck those which are most important in motivating you to do your best work. Select the ten most important statements. 629 847 333 311 836 151 937 743 431 Job security Being trusted to do my job the way I think it should be done. Participating in work group conversations. Having adequate shelter to protect from the elements. Having a job which allows me time with my family. Having an opportunity for personal growth. Socializing with my friends. Being considered for an advancement opportunity. Working with other people.

AN EXERCISE TO DETERMINE YOUR MOTIVATIONAL NEEDS

Select 819 458 757 828 735 949 234 616 146 539 341 132 the ten most important statements. (Contd.) Having children. Doing something meaningful with my life. Being in a position to contribute new ideas. Having an associate that looks out for my interests. Including other people in what I do. Being selected for an exclusive award. Being involved with work associates in social and recreational activities. Being sexually satisfied. Having a responsible person tell me when Ive done a good job. Having an active part in work related social activities. Knowing that other people respect me and my work. Acceptance as a work group member

Determining Your Motivational Needs

Second Number to left of statement indicates the category; how many in each: Number Category 1 Physiological 2 Safety - Security 3 Love - Belonging 4 Self Esteem 5 Self Actualization

YOUR SCORE
To determine results: the statements are divided into five categories intended to represent the five levels in Maslows 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.

Maslows Hierarchy U.S. Salespeoples Responses

Number 847 341 757 431 828 458 743

Percent 86% 74% 54% 51% 37% 37% 34%

INDIVIDUAL NEEDS
Maslows Hierarchy of Needs SelfRelated Sales Force Motivators Challenging tasks

actualization
Esteem Belonging Safety & security Physiological

calling for creativity

Recognition programs Presidents Club $1 mil. Job security & fringes Cash wages & bonuses

Chinese Culture Hierarchy of Needs

Selfactualization in service to society

Safety

Physiological

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 personally.

What Makes Great Salespeople?

The Achiever
This type of person is almost completely selfmotivated. 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.
Company

Sales Manager

Customers

Family

Salespersons Role Perceptions

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

Role Perceptions
Typical Sales Job Activities Where is their potential for the following: Ambiguity Lack of Accuracy Conflict

Typical Sales Job Activities

Job Dimension
SELLING FUNCTION

Activities
Plan Activities Develop leads Prospecting Identify DecisionMakers Write orders Find last orders Expedite orders Handle back orders Prepare Presentations Make Presentations Overcome Objections Introduce New Products

WORKING WITH ORDERS

Handle shipping problems

PRODUCT SERVICING

Learn about Train customers product Test equipment Supervise repairs Supervise Perform maintenance installation Receive feedback Provide feedback Provide technical information

MANAGING 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
SERVICING THE ACCOUNT

Activities
Stock shelves Set up displays Count inventory Promote local advertising

ATTENDING CONFERENCES

Sales conferences Client conferences

Product exhibitions Training sessions

TRAINING/RECRUITING

Recruit new reps Train new reps Travel with trainees Parties Drinks Out-of-Town Dinner Lunch In-Town

ENTERTAINING

TRAVELING DISTRIBUTION

Sell through Train Establish Credit processing relationships

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.

Motivation

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?

Career Stages

Exploration Career Concerns Finding an appropriate occupational field.

Establishment Successfully establishing a career in a certain occupation.

Maintenance Disengagement Holding on to Completing what has been ones achieved; career. reassessing career, with possible redirection.

Motivational Job Related

Learning the Using skills to Developing Establishing a skills required produce results. broader view of stronger selfto 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 Stage Characteristics

Career Stages

Exploration Personal Challenges Establishing a good initial professional self-concept.

Establishment Producing superior results on the job in order to be promoted.

Maintenance Maintaining motivation, though possible rewards have changed. Facing concerns about aging. Reduced competitiveness Security Helping younger colleagues

Disengagement Acceptance of career accomplishments.

Psychological Needs

Support Peer Acceptance Challenging position

Achievement Esteem Autonomy Competition

Detachment from the organization and organizational ife.

Career Stage Characteristics

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

Age Range
Proportion of Career Concerns Sales Force Exploration
14%
20 30 40 50 60 65

Establishment
Maintenance Disengagement

29%
42%

15%

Sales volume quota Profitbased quotas

60% 55% 32% 14% 28%

Large firms Sales >$40M

Bar 2 Bar 1

Small firms Sales < $40M

Activity quota

14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Use of the Various Types of Quotas

S&MM Compensation Survey 2008

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 Timing Participants Theme -- Rules -- Awards -- Publicity -- Cost

What is difference between Incentive and Recognition programs

Types of Incentive Awards Used by 168 Firms

Type of Award Cash Selected Merchandise Merchandise Catalog Travel

Percentage of Firms Using

59 46 25 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 openended 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.