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12 ■ Motivation and rewards

4 What potential problems and advantages are there in using sales contests? Is this form of
remuneration appropriate for all sales situations? What are the critical considerations in designing
a successful sales contest?
5 A company are about to launch a new product range on the UK market. What are the probable
effects of low sales force morale on this venture? Outline steps which could be taken to increase
sales force commitment to the new range.
6 Discuss the link between a salesperson’s motivation and job performance.

Case study Denham pharmaceuticals

Ian Renton is the newly appointed sales manager at Denham Pharmaceuticals (name disguised),
a medium-sized company (small by comparison to competitors) in the area of over-the-counter
drugs and proprietary medicines on prescription. In its early years, the company grew rapidly,
marketing several related drugs developed by the founders of the business and a highly
motivated and innovative research team. Selling by five or six representatives concentrated
on wholesalers and larger chemist outlets. The importance of specifiers, namely general
practitioners and hospitals, had always been recognised, but the company did not have the
resources to call personally on all UK doctors and pharmacists. The current sales force is
18 in number, some of whom have been seeking out specifiers in response to leads and
inquiries. These calls have been proving very effective in sales terms, although the link
between specifying, stocking, and end-users has been hard to identify. Ian wants to encourage
more detail calling as well as improving sales effort on existing accounts. A new remuneration
package seems to be required to achieve these objectives.
■ Design a suitable remuneration package.
■ Point out the possible advantages and disadvantages in your own plan.

Key terms
■ behaviour ■ Maslow’s hierarchy of needs
■ bonus ■ morale
■ comfort-seekers ■ motivation
■ commission ■ motivational mix
■ contests ■ motivating potential score
■ developers ■ performance-related pay
■ expenses ■ remuneration
■ expectancy theory ■ salary
■ goals ■ spotlight-seekers
■ Herzberg’s motivation–hygiene theory ■ stimulus-response
■ incentives ■ task clarity
■ instrumentality ■ valence

References
Bagozzi, R.P. (1980) ‘Performance and satisfaction in an industrial sales force: an examination
of their antecedents and simultaneity’ Journal of Marketing 44 (Spring): 65–77
Becherer, R.C., Morgan, F.W. and Richard, L.M. (1982) ‘The job characteristics of industrial
salespersons: relationship to motivation and satisfaction’ Journal of Marketing 46 (Fall): 125–35

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