CHAPTER 12

MOTIVATING SALESPEOPLE
TOWARD HIGH
PERFORMANCE

Copyright © 2001 by Harcourt, Inc. All rights reserved.

 UNDERSTAND WHAT
MOTIVATION IS ALL ABOUT
In any discussion about the motivation of
salespeople, the following four questions need to
be considered:
• What arouses salespeople’s behavior?
• What influences the intensity of the
behavioral arousal?
• What directs the person’s behavior?
• How is this behavior maintained over time?

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Motivation refers to the arousal, intensity,
direction, and persistence of effort directed
toward job tasks over a period of time.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

THE SALES MOTIVATIONAL MIX

Motivational Mix – The arousal, intensity,

direction, and persistence of people’s behavior.
Extrinsic Outcomes – Rewards obtained from
individuals’ environment.
Intrinsic Outcomes – Occur purely from the
performance of the task itself.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

TABLE 12.1 THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL
MIX AND EXAMPLES OF EACH MOTIVATIONAL METHOD

1. Sales culture  Challenging work assignments

 Ceremonies and rites  Recognition
 Stories 5. Sales Training
 Symbols  Initial
 Language  Ongoing
2. Basic compensation  Sales meetings
 Salary 6. Leadership
 Commissions  Style
 Fringe benefits  Personal contacts
3. Special financial incentives 7. Performance evaluation
 Bonuses  Method
 Contests  Performance
 Trips  Activity
4. Nonfinancial rewards  Publicity
 Opportunity for promotion

Copyright © 2001 by Harcourt, Inc. All rights reserved.

 DEVELOP A SALES CULTURE

Sales culture refers to a set of key values,

ideas, beliefs, attitudes, customs, and other
capabilities and habits shared or acquired
as a member of the sales group.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

IMPLEMENTATION OF A SALES CULTURE

• Ceremonies and Rites

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Ceremonies and rites are the elaborate,
planned activities that make up a special
event and often are conducted for the
benefit of an audience.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

IMPLEMENTATION OF A SALES CULTURE

• Ceremonies and Rites

• Stories

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Stories are narratives based on true events
that are frequently shared among
salespeople and told to new sales reps to
inform them about the organization.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

IMPLEMENTATION OF A SALES CULTURE

• Ceremonies and Rites

• Stories
• Symbols

Copyright © 2001 by Harcourt, Inc. All rights reserved.

A symbol is one thing that represents
another thing.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

IMPLEMENTATION OF A SALES CULTURE

• Ceremonies and Rites

• Stories
• Symbols
• Language

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Many companies use a specific saying,
slogan, metaphor, or other language form
to convey special meaning to employees.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

TABLE 12.2 EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR
IMPLEMENTATION WITHIN THE SALES FORCE
CULTURE
Shared Values
 Reward for performance
 Customer service at any cost
 Employees are part of family
 Attain sales targets
Shared Beliefs
 Customer orientation
 We like this company
 We are a team
 The company cares about us
 Quality work life
 We are professionals
Copyright © 2001 by Harcourt, Inc. All rights reserved.
IMPLEMENTING CULTURE
Shared Ceremonies
 Annual awards for meritorious customer
service
 Monthly meetings to acknowledge people
who attain 100% of sales targets
Shared Stories
 Sales managers who make salespeople suc-
cessful; help with personal problems
 Heroic efforts to please customers by leg-
endary salespeople
Shared Symbols and Slogans
 "Build bridges" to be in touch with
customers.
 "We don't stand on rank" (equality of
family.)
 Open offices for easy communication
 Special plaques for customer service and
sales leaders
 WHAT’S IN IT FOR ME?

Expectancy theory is based on the

assumption that salespeople have
expectancies about what they should
receive from their employer as a result of
their work efforts.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

WHAT IS THE PROBABILITY OF SUCCESS?

Expectancy is the salesperson’s estimate of the

probability that expending a given amount of
effort on a task will lead to an improved level of
performance on some dimension.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

FIGURE 12.1 FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW
MUCH EFFORT THEY WILL DEVOTE TO THEIR JOBS.

“What Is “Will I Be “Are the “Are the

the Probability Rewarded Rewards Rewards
of Success?” for Success?” Worth It?” Fair?”

Rewards Equity Satisfaction

Motivation Performance Determination
Intrinsic Intrinsic
to Work Level Inputs vs. Outputs
Extrinsic Extrinsic

Feedback

Copyright © 2001 by Harcourt, Inc. All rights reserved.

ARE THE REWARDS WORTH IT?

Valence for rewards refers to the value the

salesperson places on the reward.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

ARE THE REWARDS FAIR?
If inequity is perceived, the salesperson
may be motivated to restore equity using
one of four methods.
• First, the salesperson may increase or
decrease the level of input that may,
in turn, influence outcomes.
• Second, the salesperson could distort the
facts by convincing himself or herself
that equity really does exist even though
it may not.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
ARE THE REWARDS FAIR?
• Third, the salesperson could choose another
salesperson with whom to compare the
ratio of outcomes to inputs.
• Fourth, the salesperson could influence other
salespeople to decrease the amount of
effort they are putting into their job.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Job Satisfaction and Work Attitudes
Job satisfaction refers to feelings toward the job.

Job dissatisfaction, aggregated across many

individuals, creates a sales force that is more
likely to exhibit:
1. Higher turnover.
2. Higher absenteeism.
3. More grievances and lawsuits.
4. Stealing, sabotage, and vandalism.
5. Poorer mental and physical health.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Quality of Work Life

1. Adequate and fair compensation.

2. A safe and healthy environment.
3. Jobs that develop human capacities.
4. A chance for personal growth and security.
5. A social environment that fosters personal
identity, freedom from prejudice, a sense
of community, and upward mobility.

Copyright © 2001 by Harcourt, Inc. All rights reserved.

FIGURE 12.3 A SALESPERSON’S BEHAVIORAL
MODEL HELPS ILLUSTRATE MOTIVATIONAL
PROCESS

9.
P ast
e xpe riences
1.
E nviron -
m en tal
F actors

2. 5. 6. 7. 8.
4. R e w a rds S atisfactio n 10 . 11 .
O rgani- P erfor- E quity
Z atio nal M otivatio n Intrin sic In trinsic Job Volu ntary
m an ce D eter-
F actors to w o rk E xtrinsic E xtrin sic S earch Tu rn o ver
L evel m in ation

3.
P erson al
F actors

P ast
experiences

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Incentives that motivate people to do
their best are high motivators.
Examples of high motivators:
• Rewards for successes
• Recognition for achievement
• Job advancement
• Freedom to manage oneself
• Training and sales meetings
• Leadership
• Performance evaluation
• Incentive compensation plans
Copyright © 2001 by Harcourt, Inc. All rights reserved.
Incentives that motivate little or not at
all or, if incentives are absent, that
demotivate are low motivators.

Examples of low motivators:

• Company policy and procedures

• Fringe benefits
• Retirement programs
• More supervision

Copyright © 2001 by Harcourt, Inc. All rights reserved.

Motivate the Team
Six keys to managing a successful incentive
program:
• Identify the business goal you hope to target.
• Communicate the business needs to your
salespeople.
• Listen to your salespeople.
• Make sure the goals are reachable.
• Don’t repeat the same programs over and
over.
• Don’t try to do everything at once.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
FIGURE 12.4 ROLE PERCEPTIONS INFLUENCE PERFORMANCE

Sales
M an ager

R o le
F am ily
A m b igu ity
E ffo r t P erfo r m an ce
R o le
C u sto m ers
C o n flict

C o m p an y

Copyright © 2001 by Harcourt, Inc. All rights reserved.