SDLM UNIT-3 MBA-3 SEM

SALES, DISTRIBUTION & LOGISTICS MANAGEMENT

Unit-3 (MODULE-III)

ORGAZINING & DIRECTING SALES FORCE

LECTURE NO:-18

DESIGNING THE STRUCTURE AND SIZE OF SALES FORCE

Types of Sales Organizational Structure: -

1. Line or Military type of sales organization: - It is the classical system of establishing the
authority from top to bottom and the reporting relationship in such a case flows form bottom
to top. In case of sales organization, the line of authority passes from owner or the managing
director to the sales manager, who passes it on to the next executive falling in line such as the
deputy sales manager and further to the area manager, who would be controlling the sales
staff directly?
Thus in this system, each sub-ordinate is answerable and responsible to only level above him.

General Manager (Marketing)

Sales manager

Assistant sales Assistant sales Assistant

Sales manager
sales Assistant sales
manager Division 1 manager Division 2 manager Division 3 manager office

Sales People Sales People Sales People Office staff

Merits: -

- Easy to establish
- Unity of command
- Clear division of authority and responsibility
- Speedy action
- Co-ordination and discipline
- Flexibility

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- Less expensive form

- More chances of development

Demerits: -

- Key men are overburdened

- Lack of specialization
- The exit of one or 2 key personnel cripples the entire organization
- Overdependence on one person
- No upward communication

Suitability: - line type of sales organization is most suitable for small enterprises having small
number of sub ordinates who are disciplined and the work is of routine nature.

2. Line and Staff Sales Organization: -Here diversified product range is sold. The
organization has grown too. The line executive needs staff/advisory assistance. The advisors
are competent experts in their own field e.g. sales training, sales analysis/planning, sales
promotion, marketing research etc. These experts don’t have line authority or command the
subordinates. They just provide competent advice to the line executives
Line function: -it involves all activities that directly contribute to creating, developing and
delivering an output (Production, marketing, sales and finance)—Direct contribution
Staff function is of a supportive and consultive nature, they support line function and their
contribution to reaching objectives is indirect (HR activities- hiring, training, compensating)

Marketing manager (GM)

Manager Manager Manager

Training Sales (Zonal) Advertising

Regional Regional
Manager (north) Manager (South)

Sales Sales Sales Sales

Personnel Personnel Personnel Personnel

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Merits: -

- Sound decisions
- Specialization
- Advantage of line organization
- Research facilities

Demerits: -

- Conflicting objectives of line and staff personnel

- Dependence on experts
- More administrative cost

Suitability: -This type of structure is best suited for organizations with few products.

3. Functional Sales-Organization: - This type of sales-organization is derived from the

management theory developed by Frederick W. Taylor. This theory is based upon the premise
that each individual in an organization, executive and employees, should have few distinct
duties as possible. The principle of specialization is utilized to the full extent. Duty assignments
and delegations of authority are made according to function.
In the functional sales departments, salespeople receive instructions from several executives
but on different aspects of their work. Provision for coordinating the functional executives is
made only at the top of the structure

Director of sales
administration

Installation Manager of Manager of Manager of Manager of

and service sales sales sales dealer and
manager training supervision promotion distributor

Sales Person Sales Person Sales Person Sales Person Sales Person

Merits: -

- Full use of enterprise knowledge

- Efficiency is increased
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- Better organization
- Encourages research

Demerits: -

- Violations of the principle of unity of command

- Lack of co-ordination
- Difficult to fix responsibility
- Expensive method
- Indiscipline

References
1. http://www.authorstream.com/Presentation/agarwalbhanu1-1643205-organizing-sales-
force/
2. Sales and Distribution Management, ICFAI University Press, Hyderabad

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SDLM UNIT-3 MBA-3 SEM
SALES, DISTRIBUTION & LOGISTICS MANAGEMENT

Unit-3 (MODULE-III)

LECTURE NO:-19
Field Sales Organization/ How to Organize the Field Force: -Field sales force consists of
salespersons who work primarily with customers in person.

1. Departmentation on the Basis of Products: -Product based organizations are divided

into units that specialize in marketing of certain products.
- This structure is suited for the companies that manufacture a variety of complex technical
products or products that are dissimilar and unrelated

Chairman

Deputy Director Director

Deputy Director
of sales
(New device evaluation) (Product
administration
Quality)

Director
Director Director
(Hematology Devices)
(Toxicology Devices) (Micro biology Devices)

Manager (Sales)

Sales force
Merits: -

- Specialization
- Importance to each product
- No Interference
- Comparison among different products
- Healthy competition
- Detailed information

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De-merits: -

- Increase in marketing cost

- Not suitable when sales of any individual product is less
- Under-utilization of available resources

2. Customer-Based Sales Organization: -

- In this type of structure, the sales force is divided on the basis of customer needs. This
structure is preferred when specific customer groups require special attention due to
differences in their needs.
- This design is more customers driven and is successful when the customers are
geographically concentrated.
- For example, for industrial as well as consumer products, different departments can be
formed based on the nature of the customers and the products. The salespeople gain more
knowledge on customer requirements and become experts in that particular industry or
market over a period of time.

Merits: -
- More customer satisfaction
- Increase in market share
- Specialization

Demerits: -

- Expensive
- Sales of technical products
- Not suitable for small business unit

President
Marketing

Vice President
Sales

Sales Manager Sales Manager Sales Manager

Industrial Customers Wholesalers Retail Sales

Salesman Salesman Salesman

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3. Geographic Sales Organization: -In a geographic sales force structure, the sales force is
grouped by physical territories.
- It is the most widely used system in dividing responsibility and authority among sales
forces. Each salesperson is assigned a separate geographic territory and each territory is
headed by a regional or a zonal manager.
- Best suited for companies that manufacturers products with a high degree of similarity
- Best suited for companies that have matured product lines with several products targeted
at the same market.
National Sales Manager

Sales Training Manager

Eastern Regional Sales manager Western Regional Sales manager

Zone sales manager (4) Zone sales manager (4)

District sales manager (20) District sales manager (20)

Salespeople (100) Sales people (100)

Merits: -

- Meets local needs more effectively

- Decrease in Traveling cost
- More effective in facing competition
- Comparison among different regions

Demerits: -

- Expensive
- Not suitable for small organization

4. Combined Organizational Design: -

- Many organizations that are large in size and complex in product offering prefer a complex
design that is a combination of different levels of hierarchy in the organization
- Organization having a diversified product range and serving extensive markets use the
combined type of sales structure.

Merits: -

- This form of departmentation has merits of all other forms of departmentation.

- In this form of departmentation, we can combine 2 or more forms depending upon the
needs of organization

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 SDLM UNIT-3 MBA-3 SEM
- Most suitable for large organizations

Demerits: -

- Costly method
- Not suitable for small organizations
- Co-ordination among different departments is difficult, because of its complex structure

President

Vice President Vice President Vice President

Functional
Production Marketing HRD

Marketing manager Marketing manager

Geographic (India) (International)

G.M.
International Sales
G.M. G.M.
Customer
Customer Care Sales

Divisional Divisional Divisional Product

manager (soaps) manager (paper) manager (food)

Europe Division American Gulf Division

Division

Eastern Sales Western sales Northern sales

Division division division

References
1. https://pdfslide.net/documents/study-of-sales-organization-structure-and-its-effectiveness-in-fmcgsector.html
2. Sales and Distribution Management, ICFAI University Press, Hyderabad

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SDLM UNIT-3 MBA-3 SEM

SALES, DISTRIBUTION & LOGISTICS MANAGEMENT

Unit-3 (MODULE-III)

ORGAZINING & DIRECTING SALES FORCE

LECTURE NO:-20

RECRUITMENT AND SELECTION OF SALES FORCE

The hiring function includes recruiting candidates with the right qualifications, selecting the ones
who suit the organizational requirements, and placing them in a suitable position in the
organization.

Recruitment of Sales Personnel: -Recruitment is the process of locating and attracting job
applicants. Recruiting and selecting a new sales force is an important aspect of the sales
manager’s job.

Recruitment is the process, whereby an organization induces suitable people to apply for
employment vacancies by making them aware that such vacancies exist.

Sources of Recruitment: -

1. Internal sources of Recruitment

2. External sources of Recruitment

1. Internal Sources: -Some business organizations make recruitments from among the persons
working in the organization. As the vacancies of salesmen are filled through recruitments from
within the organization, it is termed as internal source of recruitment.
The Major Internal sources are: -
1. Present employees already working in the organization.
2. Recommendation of the existing salesman
3. Promotion by promoting certain employees from lower to higher post.
4. Transfers
5. Re-employment of Former employee

Merits or Advantages of Internal source of Recruitment: -

1. The loyalty and Co-operation of the staff are increased.

2. The training period is minimized
3. The breaking-in-period is reduced. He can easily be adjusted to the new environment
4. Generally, a person recruited from within the enterprise need not be paid very high
remuneration.

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5. Employees morale is increased and they also feel motivated

6. Sales manager usually prefers a man coming from within the organization.

Demerits or Disadvantages of Internal Source of Recruitment: -

1. Jealously and dissatisfaction develop among the workers who are not recruited.
2. Salesmen recruited from competitors may also being new customers with them. But the
same is not the case with a person recruited from within the organization.
3. This injects heavy dose of stagnation and inefficiency. Once a person gets his position easily,
he becomes complacent and lethargic because he has achieved a height which he does not
deserve.
2. External Sources: -
1. Direct Unsolicited Applicants
2. Employment Agencies
3. Sales People Making Calls on The Company: -The purchasing director is in contact
with sales personnel from other companies and is in a position to evaluate their on-the-job
performances
4. Employees of Customers: -Some companies regard their customers as a recruiting
source. Customers recommend people in their organizations who have reached the
maximum potential of their existing jobs.
5. Sales Forces of Non-Competing Companies
6. Sales Forces of Competing Companies
7. Educational Institutions
8. Wholesalers, Retailers and Customers: -At times, wholesalers, retailers and customers
happen to be an important source of recruiting salesmen.

Merits or Advantages of External Sources of Recruitment: -

1. More efficient, skilled and educated persons can be recruited as suited to the job.
2. New person also brings new ideas, new techniques with himself
3. He also brings new customers
4. It is easy for the sales managers to bring necessary changes as per his choice

Demerits or Disadvantages of External sources of Recruitment: -

1. Loyalty and cooperation among the workers is reduced

2. Training becomes expensive and time consuming
3. Frustration develops if promotion is not given after due period, say 5 to 10 years.
4. It takes a long time in understanding the working and the policies of the organization and
getting himself adjusted in the new environment.
5. The post remains vacant from the data of selection up to the data of joining the enterprise.
Thus, the working of the enterprise suffers.
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Criteria Used to Select Sales Personnel: -

Requirements in sales personnel

Mental aptitude Personality dimensions

dimensions

Mental alertness
Personality
Dimensions

Business terms and

memory recall aptitude Sociability

Communication Skills
Cynicism

Numerical ability
High energy
levels
Mechanical Interest

Dominance

Competitiveness

Emotional maturity

Work habits

Work motivation

Sales Personnel Selection Process: -

1. Sourcing the Candidates: -

a. Internal sources
b. External sources
2. Screening the Candidates: -The resume of a candidate serves as the first screening tool in
most organizations
3. Selection Test: -Tests serve as a selection tool to assess a potential employee’s skills and
abilities.
a. Personality Test
b. Honesty Test
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c. Psychometric Tests

4. Background Check: -
- Also known as reference checks
- Background check is the stage in which employers investigate about the background of the
potential employee from the references provided by the candidate in his resume.

5. Personal Interview: -

Structured Interview Unstructured Approach

• Interviewer asks the candidates, questions that have * The interviewer does not follow a
been framed beforehand and are aimed to test the predetermined course. The interviewer
Candidate’s knowledge, skills and ability frames the questions depending on the
answers given by the candidate

6. Letters of Recommendation: -Letters of recommendation may also form a part of the

selection process in some organizations. They describe the candidate from one more
perspective- the perspective of someone who knows the candidate well and who is familiar
with candidate’s background.

7. Physical Examination: -
- Essential part for more organizations
- A qualified medical practitioner appointed by the company or someone approved by the
company conducts the physical examination of candidates selected by it.

8. Making the Employment Offer: -

- Last stage in the selection process
- The offer letter communicates to the candidate all details regarding the job including the
start date, the term of contract, salary, benefits etc.

References
1. https://vdocuments.net/sales-management-and-sales-promotion.html
2. https://books.google.com/books?id=jICwfi8yybMC
3. Sales and Distribution Management, ICFAI University Press, Hyderabad

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NOTES BY: - DR. VIKAS MAHALAWAT (DEAN-SA AND HEAD-DMS)
SDLM UNIT-3 MBA-3 SEM

SALES, DISTRIBUTION & LOGISTICS MANAGEMENT

Unit-3 (MODULE-III)

ORGAZINING & DIRECTING SALES FORCE

LECTURE NO:-21

LEADING THE SALES FORCE

Meaning and Definition: -Leadership is the process by which one person influences other to
accomplish a mission, task, or objective.

According to Robert Galvin, the most important aspect of leadership is the ability to take people
to places they would fear to go on their own.

According to Rauch & Behling, “Leadership is the process of influencing the activities of an
organized group towards goal achievement.

Characteristics of an Effective Leader/Need for Leadership:-

1. Personal Characteristics of the Manager:-

a. Clarity: -A leader should be able to clearly communicate the organizational expectations to
his sales team.
b. Consistency: -A leader should also be consistent in communicating the expectations of the
organization to the sales team.
c. Urgency: -A leader should be able to perceive the urgency of a situation as well as
communicate it to his team.
d. Assertiveness: -He should be able to assert his authority so that his sales team obeys his
order.
e. Ego drive: -Ego drive is the level of satisfaction that a person derives by persuading others
to take a particular action.
f. Ego-strength: -Sales is a difficult occupation and the sales person often has to face
rejection from the customer. So Ego strength should be high.
g. Risk-Taking Ability: -An effective leader is one who can take risks.
h. Innovativeness: -A sales manager should be able to come up with innovative solutions to
problems.
i. Empathy: -Empathy is the ability to sense the feelings of others.
j. Eye for Talent: -To be able to lead a sales force, a sales manager should have an eye for
talent.

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2. Leader Must Be Acceptable To His Followers:-

Leadership has to be earned; it cannot be nominated, appointed or conferred. When an
individual is accepted by the people as their leader and give the right to guide, his followers
become his subordinates and respond to him as a leader.

3. Basis of Power: -Sales managers can exert an influence on their subordinates by means of
the power they wield over them.
- Expert Power: -Expert power originates from the expertise of the person in a position of
authority. The expertise may be the result of knowledge, information or skills in a particular
area.
- Referent Power: - Referent power originates from the attraction that one person has to
another. The basis of this attraction may be friendship, a desire to identify with a successful,
famous or reputed personality.
- Legitimate Power: -Legitimate Power arises when the position held by a person gives him
the right to influence others and command obedience from them.
- Reward Power: - A person may have reward power over another due to his authority to
confer rewards on the other.
- Coercive Power: -Coercive power originates due to an individual’s perception that
another person has the right to confer a reward or punishment on him.

Leadership Styles of Sales Managers:-

1. Traditional Leadership Styles:-

A. Autocratic Style: -A sales manager who follows an autocratic style of leadership gives
orders and expects his subordinates to obey them.
• An autocratic sales manager uses his position in the organization to show his authority
and enforce discipline and control over his subordinates.
• Such a leadership style is suitable, if the salespersons are new and lack experience or
when they have to be disciplined.
B. Bureaucratic Style: -The sales manager abides by the rules, policies, and procedures of
the organization and expects the sales persons also to do the same. Although, he is not
responsible for framing the rules, policies and procedures, he enforces them strictly.
• This type of leadership style is more followed in government departments.
C. Consultative Style: - A sales manager who follows a consultative style consults his
subordinates before making a decision. He invites the view and suggestions of the
salespersons working under him and takes the final decision after considering all the
viewpoints.
• The consultative style of leadership is also termed as participative or supportive
leadership.
• This type of style is suitable when
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- There is no urgency of the decision

- The subordinates are experienced and matured and can provide suggestions and
comments.
D. Democratic Style: - It is similar to the consultative leadership style. A sales manager, who
follows a democratic style, invites the participation of his sub-ordinates in making decisions.
• Unlike in the consultative style, the sales manager makes the final decision based on his
judgment, the sales manager with a democratic style makes the final decision based on
consensus or majority vote.
• This type of style is suitable when:-
- Group decision making is required
- There are experienced and matured followers.
E. Laissez-Faire Leadership: -A sales manager who has a laissez-faire leadership style sets
goals for the salespersons but gives them total freedom to manage their accounts.
• This type of leadership style is suitable when a sales manager has independent
representatives working under him.

2. Modern Leadership Styles:-

A. Paternalistic Style: -This style aims at creating a family atmosphere within the
organization. The leader is respected and treated as a father figure by the subordinates.
• This style is mostly followed in Japanese organizations.
• The leader considers himself as a parent figure.
• The relations are very homely.
• The leader is responsive for decision making.
B. Situational Leadership Model: -Now-a-days, in most well managed organization, the
managers follow situational leadership style. This means, the leadership style varies
depending upon the situation. In other words, the leader may be autocrat at times,
consultative at times, and participative at times, depending upon the decision and the
situation.
• This model proposes that the leadership style of a manager is contingent upon the
situation he faces.
• The model proposes that a manager should adopt an appropriate leadership style based
on the maturity of the subordinates which, in turn, is described as the willingness and
the ability of the subordinates to focus their behavior on the task or objective.

Contemporary Views of Sales Leadership:-

A. Leader-Member Exchange (LMX) model: -LMX model focuses on the salesperson-sales

manager dyad as a reciprocal influence process. LMX proposes that sales managers interact
uniquely with individual salespeople rather than prescribing one style or set of behaviors to be
used in standardized “situations”. Studies have shown that reciprocal trust between sales
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managers and sales people influences the leader-member exchange and can generate positive
job attitudes and perceptions in the sales force. In addition one study found that the higher
the quality of exchange relationships between the salesperson and sales manager, the greater
the salesperson’s goal commitment and ultimately performance
B. Transformational Leadership: - It is another emerging concept of interest to sales
managers and researchers.
• Transformational leaders are charismatic, inspirational and driven by a sense of mission.
• Another aspect of transformational leadership is individualized consideration through
which employees are given personalized attention.
Transformational leadership is a type of leadership style that leads to positive changes in those
who follow. Transformational leaders are generally energetic, enthusiastic and passionate. Not
only are these leaders concerned and involved in the process; they are also focused on helping
every member of the group succeed as well.
C. Behavioral Self-Management (BSM):-
It involves self-imposed planning, behavior evaluation, rewards, and punishment. Given the
unique nature of the sales role, BSM offers some advantages. First many sales people work
without constant supervision, so self-control and self-discipline are important for success.
Second, Individuals usually work more enthusiastically when they have had significant input
into planning and prioritizing their work.

Skills Essential for A Leader:-

• Delegation Skills
• Communication Skills
• Team-building Skills
• Administrative Skills
• Interpersonal Skills

References
1. https://www.coursehero.com/file/67075907/THEORIESOFLEADERSHIP500docx/
2. http://ngunakua.blogspot.com/p/topic7directingsalesforce_1.html
3. Sales and Distribution Management, ICFAI University Press, Hyderabad

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NOTES BY: - DR. VIKAS MAHALAWAT (DEAN-SA AND HEAD-DMS)
SDLM UNIT-3 MBA-3 SEM

SALES, DISTRIBUTION & LOGISTICS MANAGEMENT

Unit-3 (MODULE-III)

ORGAZINING & DIRECTING SALES FORCE

LECTURE NO:-22

MOTIVATING THE SALES FORCE

Meaning and Definition of Motivation: -The word motivation is derived from the Latin word
“movere” which means to move.

- Motivation is a process that instigates goal-directed behavior in an individual. In other words,

motivation deals with the force within a person, or which acts on a person, to initiate desired
behavior and directs it towards the attainment of organizational goals.
- According to Fred Luthans, “Motivation is a process that starts with a physiological or
psychological deficiency or need that activates a behavior or a drive that is aimed at a goal or
incentive.
- In Sales force management; Motivation refers to the amount of effort a salesperson is willing to
expend to accomplish the tasks associated with his job.

Importance of Motivation for Sales Force:-

1. Unique Nature of the Sales Job: -Salespeople experience a wonderful sense of excitement
when they make a sale but they must also frequently deal with the frustration and rejection of
not making the sales.
2. Individuality of Sales People: -Sales representatives have their own personal goals,
problems, strengths and weaknesses. Each representative may respond differently to a given
motivating force.
- Management must develop a motivational mix that appeals to a whole group but also has
the flexibility to appeal to the varying individual needs.
3. Diversity in Company Goals: -A company usually has many diverse sales goals, and these
goals may even conflict. One goal may be to correct an imbalanced inventory and another may
be to have the sales force do missionary selling to strengthen long-term customer relations.
These 2 goals conflict somewhat and require different motivating forces. With diverse goals
such as these, developing and effective combination of motivators is difficult.
4. Changes in Market Environment: -Changes in the market environment can make it
difficult for management to develop the right mix of sales force motivational methods.

Need for Motivation: -Motivation is one of the important factors determining organizational
efficiency. The need for motivation in an organization arises due to the following reasons:-
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1. Improve Efficiency: - Motivated employees generally put higher performance as compared

to other employees in an organization. In a study by Coilliam James, it was found that
motivated employees worked at close to 80-90% of their ability.
- By motivating properly, the sales manager cannot only ensure improved efficiency and
performance of the sales force but also can get the best out of them.
2. Relieve the Tension: -Usually, the sales force faces new and challenging type of situations
during the selling process and therefore, selling job is overridden with a lot of problems and
tensions. Therefore motivation is highly essential in order to enhance the working spirit of the
sales force to perform well in trying and conditions.
3. Keep the Sales Force Happy: -The sales force of an organization must be kept happy and
contented so that the organization can get the best out of them. Therefore, the necessity to
motivate them through various stimuli is considered essential.
4. Human Treatment: - As other people, salesmen too have their own feelings, emotions and
sentiments. Motivation necessarily influences such feelings, emotions and sentiments in a
positive way so that the salesmen contribute their best for organization.

Process of Motivation:-

Motive

Behavior Tension
Reduction

Goal

1. Motive: -Starts when a motive prompts people to action. Motives are the primary energizer
of behavior and explain the reasons of behavior.
- Motives are largely subjective and represent the mental picture of the sales person by
explaining the rationale of human behavior.
2. Behavior: -The behavior of the salesperson comprises a series of activities that the person
does by being motivated to achieve individual and organizational goals.
3. Goal:-The goals chosen by an individual salesperson depends on various factors like the
cultural norms and values, the sales person’s inherited capabilities, influence of personal
learning and experiences, and the type and level of mobility in the physical and social world of
the sales person.
4. Tension Reduction: -Every salesperson in the organization tends to develop certain
motivational drives as a product of his cultural environment in which he lives and his goal
driving behavior. This also affects the way the sales the salespeople view their jobs and
approach their personal and professional life.

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Methods of Motivation:-
1. Sales Contests: -By sales contests, we mean a compensation among the salesmen, by
maximizing their effort to boost up the sales, to earn the name of superior salesman. The aim
of this contest is to increase the sales; to develop a team spirit, boosting the morale,
encouraging working hard, fast moving of slow moving items etc.
2. Conventions and Meetings: -This is a group motivation. All employees meet at a place.
Everyone meets and contacts fellow workers. Exchange of ideas and opinions takes place.
Problems are solved and new policies are developed.
3. Recognition and Honor: -Recognition and honor-title such as “super salesman for the
year”, medal or trophy, congratulatory greetings, appreciation letters etc. greatly encourage
the salesman to do more hard work. These recognitions and honors satisfy a salesman greatly.
4. Personal Meet: -The performance of the salesmen can be known from their reports.
Further, to have more effect on the sales, salesmen may be facilitated to meet the sales
manager in findings solutions to their typical problems. This type of personal meet is a good
encouragement.
5. Promotion: -By considering abilities and experience, the salesmen are promoted to a higher
post on a higher salary. Thereby status increases, self-respect increases, remuneration
increases and it is the best motivation for salesmen.
6. Freedom: -In performing his job, he should not be controlled at a high degree. It is necessary
that salesman be given a reasonable degree of freedom in doing his assigned job. The
salesman should be permitted to do his job in his own pattern.
7. Work Culture: - the human beings do work from money but it is the atmosphere at work,
the working conditions both psychological as well as the physical that could affect his output
at the work place. A salesman needs a work culture that is free from necessary pressures, an
atmosphere that offers open work culture where he is not scared of his superiors, but
considers them his friends, philosopher and guide, where problem solving is handled as a
matter of common concern.
8. Spirit of Competition: - The salesman must always be apprehensive of the achievements of
his counterpart from adjoining and other territories within the organization.

Sales Manager’s Tools for Motivation:-

At Individual Level:-

1. Personal Counseling: -Most of the individual salesperson’s contact with management is

with the immediate supervisor. Although supervisors have other important functions to
perform such as training, evaluation and control, they also use their visits with salespersons
for detecting personal or business problems, and for motivational purposes. Sales managers

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SDLM UNIT-3 MBA-3 SEM

reserve some time for observing and conferring with sales personnel. District managers visit
each salesperson on the job in the assigned sales territory.
2. Meetings: -While it is impractical in large sales organization for top sales executives to visit
personally all territories or even all sales districts, there are other ways to maintain personal
contact with sales personnel. One is to arrange individual conferences between sales personnel
and the top sales executive during regional or national meetings- the opportunity to visit with
the “big boss” provides strong motivation.
3. Personal Rewards: -Often the individual salesman, along with the congratulatory letter
would appreciation as a small token of value it from the top boss, to remind the salesman of his
achievement. The sales manager should distribute such personal awards and mementoes once
in a while to keep the morale of the staff high.

At Group Level:-

1. Sales Contests: -Sales contests are temporary programs that offer financial and/or non-
financial rewards for accomplishing specified usually short-term objectives.
- To optimize, the use of sales contest, the following guidelines are recommended:-
a. Use variety as a basic element of sales contests. Vary timing, duration, themes and
rewards.
b. Ensure that sales contest objectives are clear, realistically attainable and quantifiable to
allow performance assessment.
c. Consider the positive effects of including non-selling personnel in sales contests.
2. Sales Meeting, Seminars and Conferences: -The salesmen look forward to such meets.
These meetings give them the opportunities to speak to and meet their other colleagues from
all parts of the country and across the globe. The conferences and seminars also give them
chance to exhibit their performances in front of the entire country.
- The sales team looks forward to meeting again at the next, with higher achievements of
their team.
3. In-House Publications/Achievement Circulars: - A circular from the sales manager,
circulated all over the country extolling the achievements of a particular sales man or the
branch team does wonders for the motivation of the individual involved.
- Similarly, the in-house magazine published by the organizations devoted the entire issue or
the select few pages create a sense of pride amongst the achievers.
4. In-house Training/Reorientation Programmes: -Such different parts an opportunity to
come together and exchange viewpoints, market scenario, the status of the organization in
their respective area. This also creates a sense of camaraderie amongst different batch mates.
5. Motivation Building Motives, Films, Hosts And Books:-The sales manager, can always
arrange special film shows on topics like leadership, motivation building, team spirit, team
building, problem solving, time management, channel management, product promotions and
confidence building etc.

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NOTES BY: - DR. VIKAS MAHALAWAT (DEAN-SA AND HEAD-DMS)
SDLM UNIT-3 MBA-3 SEM

- Such films leave their deep impression on young minds. The stories of great achievers,
published can be circulated amongst the salesmen.
6. Open Culture: -The organizations are changing their constructions. The offices are moving
away from closed door cabins to the open office premises without enclosures. The same dress
codes from the chairman to the middle worker are being prescribed.

Model of the Motivation Process:-

The motivation process consists of 6 steps

a. Recognize need deficiency
b. Search for ways to satisfy needs
c. Establish goal-directed behavior
d. Performance
e. Provide rewards or Punishment
f. Needs reassessment.

Process Begins Recognize need

deficiency

Search for ways to

satisfy needs
Needs reassessment

Establish goal-directed
behavior
Provide rewards or
Punishment Sales Person
Performance

Fig: - Six Step Motivation Process

References
1. https://ebrary.net/2837/management/work_motivation
2. https://phantran.net/motivation-and-communications-in-sales-management/
3. Sales and Distribution Management, ICFAI University Press, Hyderabad

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NOTES BY: - DR. VIKAS MAHALAWAT (DEAN-SA AND HEAD-DMS)