SPMA 3P95

March 28th, 2023

Section 1

Week 10: Motivating and Compensating a Sales Force

Readings:

 Spiro, Stanton, Rich. “Motivating…” (pg. 223-243) and “Sales force compensation” (251-
272)
 Goltz. “What’s the best way to...”
 Sutton. “Timberwolves, Lynx take big steps…”
Canadian Junior Golf Association
(Blake Sloan, Mgr of Communications; 2021 SPMA Grad)
(Tyler Torrieri, Dir Tour Operations, 2020 SPMA Grad)
What is the CJGA?
- Nationwide junior golf tour
- 136 events across Canada
o 5 – 23
o Linkstar tour 5 – 15
o Junio 11 – 23
- Facilitate junior gold in 8 provinces
Part 1:
CJGA digital communications breakdown
- Social media  Less direct. Used for brand building (60%), Sponsorship activation (30%),
and Promotion (10%).
- Email marketing/blasts  More direct, targeted, and personal. Used for promotion
(50%), Sponsorship activation (35%), CJGA News/Brand building (15%)
- CJGA Website  All encompassing, covers all of these objectives equally. Used for Press
releases and partner advertisements.
Why does the CJGA utilize social media?
- Two-way communication between CJGA and members/partners. Less corporate and
more authentic.
- Brand personalities:
o Directly interacting with members via posts, captions, tweets…
 o Commenting on news in the industry gauging opinions on certain topics and
create a conversation.
Why does the CJGA utilize Social Media?
- Customer service
o Directly message and assist members inquiring about the service
- Partnership engagement/interaction
o Abel to interact with potential partners via social media
Enagaging and resharing existing partners content
o Utilizing social media as the modern-day cold calling
Direct messaging for brands for potential partnership/collaborations
Direct link to our partnerships
Digital Marketing and Evaluation
- It is very easy to evaluate and change what messaging to put out with tools that digital
marketing services offer
- Social media
- Email marketing (constant contact software)
How much does CJGA Digital Marketing Services Cost?
- Social Media
o Very inexpensive both when free and when you invest money into promotions:
o Free: Great for smaller businesses amount of people you reach is more
dependent on the content you put outm, how and who you interact with,
frequency of posts…
o Paid promotions: Same, but the amount of people is boosted
o Example: spent $670 throughout five promoted posts on Instagram
o Results:
o Over 190000 total impressions
o Over 120000 accounts reached
o 40000 impressions per post
o Over 24000 account reached per post

Aftermarketing:
- Digital media is an invaluable tool in maintaining a relationship with partners
throughout the entire year.
- Make them feel valued.
- Consistency is key.
- Ensuring similar partners get similar benefits.
- Building a relationship through digital media channels play a big role in retention for us.
Example:
- CJGA awards held to honor players and thank existing partners.
- Did not sell award to any partners.
- Ensured the biggest and best awards were given to the appropriate partners.
Social media: A revenue source with little to no overhead
- Example from 3P95: White sox start time 7/11
- Most digital advertising promotions are like this, the only cost is staffing.
- Partners either pay directly for a promotion or through their products/services.
- The hard part is producing a promotion that is the best fit for the organizations and our
partner.
- GolfHer Female Player of the Month
Part 3: 3P95 concepts continued
Developing your sales skills
- Professor Hyatt: After this class you are a 4/10, you need to actually sell things in order
to become a 5, 6, 7+
- This is a concept that is important to embrace.
- Throw yourself into calls, refer to what you know from this calls but know that the only
way to consistently get better is with each call/sale/rejection.
Tips:
- Don’t say “not a problem, no worries”, “to be honest” because it makes it seem like you
were going to lie
- Be you, don’t act like a salesman
Bill Sutton: Retention
- 15x the resources to find a new customer than to keep an old one
- Something you see first hand
- Not only more cost-effective to retain
Retention: CJGA Example
- Proudly Canadian campaign to get young golf brands to move up the frequency
escalator
- Our philosophy: If/when they grow and make it big, they will be loyal to us.
- We are a Canadian development golf tour, it is on brand for us to develop both the next
generation of Canadian golfers and Canadian golf brands.
- Example: rejected startup company and now they are massive and refuse to partner
Bill Sutton: “Super-committed fans/STH’s become de facto salespeople”
Stakeholders
- Members/players
- Partner Tours
- Product partners
Be likeable.
- McCormack: No one wants to develop business relationships with unlikeable people.
- Carnegie: How to win friends and influence people, make people like you.
- CJGA: if they like us, they are going to want to work with us and be a member of our
tour.
Main competitors:
- Maple Leaf Junior league golf tour
Part 4: Conclusion
- Networking  Becomes a lot easier the more you do it, treat it like any sort of
conversation, don’t undervalue the importance of a business card.

Spiro, Stanton, and Rich (2003)

 Motivation: The desire to expend effort to fulfill a need.

 Motivation is all about effort. If the boss wants more effort, a reward can motivate…
Effort-Performance-Reward Chain

 Are the rewards desirable?

o No? Slack off. Yes?
 Does better performance lead to greater rewards?
o No? Slack off. Yes?
 Does more effort lead to better performance?
o No? Slack off. Yes? Greater effort

The Reward

 Reward must be something the salesperson actually wants.

o Ex. certificate of wonderfulness might not cut it if you really want big $.
 The reward must be perceived as fair relative to other co-workers and their rewards.
o You and Betty both sell the same. You get $1000 and she gets a new car…

The Performance-Reward link

  You get a reward for great performance:
o How do we define performance?
o How do we measure performance?
 Performance goals should be clear, concise, and measurable.
The Effort-Performance link

 For the chain to work, you must believe increased effort leads to increased
performance.
How can this link break down?

 Your leads are dogs?

 Your products are dogs?
 Don’t have the resources to do your job?
 Your strategy isn’t the best?
What’s my role? How the roles you play influence goals.

 Role ambiguity
o When the sales reps are not sure what is expected of them.
o When do you have the authority to lower the price?
 Role Conflict  Jordyn Moussa (Sales and Social Media)
o You’re working both for the company and the client. You can get caught in the
middle.
o You may have multiple roles within the company off-season sales and in-season
jobs.
o Focusing too much on year-round sales means less attention to your other tasks.

What makes an effective reward?

 Each salesperson has different motives – often depending on demographics,

psychological traits, experience, or stage of career.
 Every motivational program should have some elements that can be tailored to the
individual’s needs.
Don’t forget the big picture:

 Sport organizations have long-term goals (profitability, revenue generation, etc.)

 To reach goals, org’s develop strategies (brand-building, product delivery, marketing,
etc.)
 Salespeople and their efforts impact all the org’s big picture objectives.
 Salesperson motivation is often a matter of compensation.
Types of compensation:
  Financial compensation  Direct payment of money, or indirect payment (benefits like
insurance or stock options).
 Nonfinancial compensation  Opportunity to advance in the job, recognition,
enjoyment of the job, new more prestigious job title…
Designing a sales compensation plan (from management perspective):
1. Review Job Descriptions
o Each salesperson must understand exactly what their job is.
o Good job descriptions reduce role ambiguity and role conflict.
2. Identify plan’s objectives.
o Increase profits by 10%
o Improve customer satisfaction.
o Increase volume of existing accounts (maximize lifetime value)
3. Establish a level of compensation.
o How much money do you want the salespeople to make?
 Must be competitive with the industry standard or you will lose good
salespeople to competitors.
o Do you want to limit the amount?
 If top salesperson makes more than their boss, they might balk at a
promotion!
 But a limit takes away incentive to sell…
4. Establish a method of compensation:
o How is the compensation earned?
 Salaries? Commissions? Bonuses? Indirect monetary benefit? Expenses?
o Three widely used methods of compensation:
a. Straight salary
 Strength:
 Regular income gives salespeople security.
 Limitation:
 Little motivation to work extra hard.
 When is it appropriate?
 Sales recruit in training
 New territory/new line of products
b. Straight commission
 Strength:
 Huge motivation to work extra hard.
 Limitation:
 Lack of security
 Focus on short-term big sale without regard for customer
satisfaction developing new business, long-term org objectives.
  When is it appropriate:
 When the biggest objective is to maximize sales right now.
Commission base: what measurement of performance is used in figuring payment (total $sold?
Gross margin?)
Commission rate: the amount paid for each unit of accomplishment (5%? 7%? Different rates for
different products? Different rates for different levels reached? Ex. 5% on the first $20,000 and
then 7% after that)
c. A combination – a balance between security and motivation
 Salary + commission?
 Salary + bonus?
 Salary + commission + bonus?
 Bonus: a lump-sum payment for an above-normal performance.
Often a specific period of time.
5. Decide on Indirect monetary compensation – “Benefits”
o Often become more valuable the longer you stay with the org (A way to keep
great employees from leaving).
o Such as:
 Retirement plans
 Paid vacation.
 Dental/life insurance plans.
 Profit sharing.
 Stock options.
6. Pretest and Install the plan.
o Implementing a new plan? Run a simulation against old way of doing things
(using past numbers) to ensure new way is better.
o Phase-in the new plan.
o Re-evaluate the plan in years ahead to ensure it still meets the company’s needs.

Week 11: Selling Tickets

Readings:

 Lombardo. “Bobcats go off the court…”

 Lombardo. “Magic to expand program…”
 Lombardo. “Season ticket holders snap up…”
 Lombardo. “This dunk’s on us.”
 Fisher. “NFL warms up…”
 Lombardo. “Want to see the Warriors…”
  Fisher. “TM+ pairs primary…”
 Smith. “Moving tickets on campus”
 Fisher & Muret. “That’s the ticket…”
 Lombardo. “The laws of attraction.”
 Levinsky & Kirven. “As Detroit Tigers try to fill seats…”

Let’s say your team’s attendance is down.

 Your ticket revenue drops, as does revenue related to tickets (parking, concessions,
souvenirs…).
 What do you do to give your revenue a bump?
 Traditionally teams would panic and “paper the house” by making free tickets available.
 Benefits:
o No ticket rev., but make $ on related rev.
o In fact, as fans save big $ on free tickets, they have more $ to spend elsewhere in
venue, meaning higher “per caps”.
 Draw backs?
o Fans will never want to pay full price again.
o Season ticket holders (STH’s) feel ripped off.
 Now “added-value” is the key concept. Don’t discount your tickets, but give them
something extra of value.
o Slash concession stand prices. Everyone benefits from cheaper food/drink (the
once-a-season person to the STH).
o Awesome stadium giveaways (paid for by a sponsor).

Added value (AV) and the Frequency Escalator (FE)

 A team’s long-term profitability often comes down to high #s of full STHs, plus a high
renewal rate (high LTV).
 You want to give them high AV to keep them renewing and entice movement up the
frequency escalator.
Charlotte Bobcats:

 Why not give STH’s non-game-day, year-round awesome products/services?

 Have sponsors provide this as part of their sponsorship package…
 Ex. Golf sponsor provides $50,000 cash and $50,000 worth of free golf for $75,000
worth of team’s inventory. Free golf is offered to STH’s).