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Motivating Salespeople

Motivating Salespeople

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Published by Shinta Rahmani
How and why motivate salespeople.
How and why motivate salespeople.

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Categories:Types, Business/Law
Published by: Shinta Rahmani on May 30, 2010
Copyright:Attribution Non-commercial

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07/11/2010

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From the book of Dalrymple’s Sales Management ch.

11

By Shinta Rahmani, M.Si

Why the concer n for sales force motiva tion?

What are the differe nt theorie s of motiva tion

Motivation Tools Self Manageme nt Incentive s program Recognitio n program

Quota

By Shinta Rahmani, M.Si

Individual’s willingness to exert effort to achieve the organization’s goal, while satisfying individual’s need  3 components :

1. Effort 2. Individual Need 3. Organizational Goals

By Shinta Rahmani, M.Si

3 characteristic of effort 1. The drive to initiate action on task 2. The quality of effort on a task 3. The persistence to expend effort over a period of time sufficient to meet or exceed

By Shinta Rahmani, M.Si

Sales Force Need Status Control Respect

Company action to Fill Needs Changes titles from salesperson to area manager Buy salespeople more luxurious car to drives Allow salespeople to help plan sales quotas and sequences of calls Invite salespeople to gatherings of top executive Put picture of top salespeople in company ads and newsletter Assign each salesperson a core of loyal customers that are called on regularly

Routine

Accomplishment Set reasonable goals for the number of calls and sales Stimulation Run short-term sales contests By Shinta Rahmani, M.Si Schedules sales meetings in exoctic locations

Exploration Stage
 Early’s in one’s career, the overall concern is finding the right occupation

Establishment Stage
 Most people eventually change their focus from searching for the best occupation to committing themselves to their current job

By Shinta Rahmani, M.Si

Maintenance Stage
 In their late thirties or early forties, people begin to reflect on their past accomplishment

Disengagement Stage
 Everyone inevitably withdraws from his or her job and career. For people facing imminent retirement, this transition period helps them to cope with the feeling of loss of focus and to face the fact that they will no longer be making a contribution, which has been an important part of their careers

By Shinta Rahmani, M.Si

By Shinta Rahmani, M.Si

 

The strength of the belief Management should be concerned with the accuracy of the salespeople’s role perception. Expending greater effort on the wrong activities will not lead to better performance. Salespeople’s have a tendency to make attributions about why a certain performance outcome occurs
By Shinta Rahmani, M.Si

When people are certain that their performance will be personally rewarding, their motivation will be higher  This is one of the reasons for the success of commission compensation plan

By Shinta Rahmani, M.Si

How much salespeople desire a particular reward will also influence their motivation to perform and is referred to as reward valence  People don’t simply look at their own rewards, they also make comparisons with other people’s rewards

By Shinta Rahmani, M.Si

3 Reasons for establishing quotas for salespeople
 To help management motivate salespeople  To direct salespeople where to put their efforts  To provide standards for performance evaluation

Types of Quotas
 Sales Volume Quota  Profit-Based Quotas  Activity Quotas

By Shinta Rahmani, M.Si

Large co

Small co

SalesVolume 32% 14% 28% 14%

60% 55%

Profit Bsed

Activity

By Shinta Rahmani, M.Si

When are QUOTA effective?
 By Setting a goal with Goal theory  Difficult goals, if accepted, will lead to higher performance than moderate or easy goals or no goal

For effective, management not only setting specific goals, but also be concerned following:
 Providing feedback  Gaining goal commitment  Building self confident
By Shinta Rahmani, M.Si

Administering Quota
 Quotas are usually based on one or more of the following : past sales, forecasted sales, sales potential and individual and salesperson territory adjustment

When not use quota
 When a significant portion of sales depends on cooperation between salespeople in different territories value  Sales are infrequent with a long salescycle but the dollar value is very high

By Shinta Rahmani, M.Si

Short term promotional events intended to inspire salespeople to a greater than usual performance level and provide them with rewards  Goals and Timing  Prizes  Administration Issues

 Choose a good theme for contest  Should encourage the avg salesperson to expend extra effort  Incentive prog should be highly promoted
By Shinta Rahmani, M.Si

RP is similar to incentive in receiving some money for individual or group. RP is recognition by management for exceptional performance. RP is longer than incentive program RP based on two principle
1. Generate enthusiasm and motivation for as many salespeople as possible 2. Get useful feedback from sales force to improve performance opportunities even more
By Shinta Rahmani, M.Si

Ethical situation
 Poorly run or poorly conceived quotas and contest have high potential for fostering unethical behaviors by salespeople  There is an issue whether promising rewards detract from the jobs

By Shinta Rahmani, M.Si

Pay is not a motivator  Rewards punish  Rewards ignore reasons  Rewards discourage risk taking

By Shinta Rahmani, M.Si

By Shinta Rahmani, M.Si

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