CHAPTER 13

MOTIVATING THE
SALESFORCE
 MOTIVATION
• Motivation is the desire to expend effort
to fulfill a need.
• In terms of sales, it is the effort
salespeople want to make toward various
aspects of their jobs.
 IMPORTANCE OF
MOTIVATION
• Unique nature of sales positions
• Individuality
• Diversity of company goals
• Changes in market conditions
 BEHAVIORAL CONCEPTS
• The process begins with an aroused need
• Three conditions must be met
– rewards must be desirable
– gaining rewards is based on performance
(standards have been enunciated)
– performance goals are attainable
 CAREER STAGES
• Exploration
• Establishment
• Maintenance
• Disengagement
 THEORIES OF
MOTIVATION
• Maslow’s Hierarchy of Needs
• Herzberg’s Motivator/Hygene Theory
• McClelland’s Three Needs Theory
• Equity Theory
• Expectancy Theory
 MASLOW’S HIERARCHY
OF NEEDS
• Physiological
• Safety
• Social
• Esteem
• Self Actualization
 MASLOW’S HIERARCHY
OF NEEDS
• These needs can be satisfied with
intrinsic and extrinsic rewards.
• Extrinsic rewards are provided by others
• Intrinsic rewards are come from the task
itself
 MOTIVATOR/HYGENE
THEORY
• Hygene factors (sources of
dissatisfaction)
• Motivators (sources of satisfaction)
• Is “pay” a motivator or a hygene factor?
 THREE NEEDS THEORY
• Achievement (nAch)
• Power (nPow)
• Affiliation (nAff)
 EQUITY THEORY
• Compare my efforts and rewards to
another’s efforts and rewards
 EXPECTANCY THEORY
• “The strength of a tendency to act in a
certain way depends on the strength of
an expectation that the act will be
followed by a given outcome and on the
attractiveness of that outcome to the
individual”
 EXPECTANCY THEORY
Attractiveness

EFFORT PERFORMANCE REWARDS

Expectancy Instrumentality
 EXPECTANCY THEORY
• Attractiveness
– importance one places on reward
• Instrumentality (Performance/Reward
Link)
– belief that performance will lead to reward
• Expectancy (Effort/Performance Link)
– perception that exertion of effort will lead to
performance
 EXPECTANCY THEORY
IMPLICATIONS
• Do salespeople value the rewards?
• Are the rewards equitable?
• Greater rewards should be tied to greater
performance
• Management must provide tools for
salespeople to perform
 MOTIVATING
SALESPEOPLE
• Recruit “matches”
• Incorporate individual needs
• Provide job information and training
• Build self-esteem
• Be proactive in dealing with problems
• Build strong communication lines
• Understand the job
 SPECIFIC MOTIVATORS
• Compensation plan
• Job enrichment
• Recognition
• Encouragement and praise
• Sales meetings
• Sales contests
• Quotas
 COMPENSATION PLAN
• Financial rewards (salary, commission,
bonus, etc.)
• Non-financial rewards
 JOB ENRICHMENT
• Provide responsibility and authority to
make decisions
 RECOGNITION
• Plaques, pins, certificates
• Honor clubs
 ENCOURAGEMENT AND
PRAISE
• Inexpensive yet effective!
 MEETINGS
• A communication tool
• Planning is important
 SUCCESSFUL SALES
CONTESTS
• Reward more than one person
• Set realistic goals
• Vary the goals from one contest to the
next
• Vary the prizes from one contest to the
next
• Publicize rules
 QUOTAS
• Help motivate salespeople
• Direct where to put effort
• Provide standards for evaluation
 QUOTA TYPES
• Sales volume
• Profit based
• Activity
• Expense
 FROM YOUR TEXT...
• Read everything in this chapter!