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Retail Management

Week 4: Motivation, Personal Selling, Leadership, Training and Compensation

Benefits of motivation

harder Work smarter Increased creativity Higher self-esteem More relaxed Increased use of win-win negotiations Enhanced relationships

Motivational theoriesMaslows Hierarchy of Needs


Hertzbergs dual factor theory distinguished factors which can cause dissatisfaction but cannot motivate (hygiene factors) and factors which can cause positive motivation. Hygiene factors includes the following:

physical working conditions; security; salary and interpersonal relationships.


Vrooms expectancy theory

1. Expectancy. This refers to a persons perceived

relationship between effort and performance, i.e. to the extent to which a person believes that increased effort will lead to higher performance. 2. Instrumentality. This reflects the persons perception of the relationship between performance and reward; for example, it reflects the extent to which a person believes that higher performance will lead to promotion. 3. Valence. This represents the value placed upon a particular reward by a person. For some individuals, promotion may be highly valued; for others, it may have little value.

Vrooms expectancy theory

Adamss inequity theory

Feelings of inequity (unfairness) can arise when an individuals effort or performance on the job exceeds the rewards they receive. For a salesperson inequity can be felt in the following areas:
Monetary rewards Workload Promotion Degree of recognition Supervisory behaviour Targets Tasks.

Motivating factors for salespeople

Motivation in practice
Performance is a function of ability and motivation. Ability depends

on education, experience and

training. Motivation can be improved quickly; Financial incentives Setting sales targets or quotas Meetings between managers and salespeople Promotion Sales contests

Retail motivation in practice


a positive mindset Offer more flexible working hours Encourage creativity Be open, not intimidating Have fun Remember birthdays and anniversaries Visit the competition Provide perks

Retail motivation in practice



Discounts on Merchandise Company Parties Event Tickets to events Free Food Time Off for Charity Break-room Entertainment Random Acts of Kindness

Sales ResponsibilitiesPrimary Functions

Identification Presentation Negotiation Handling Closing

of Customer Needs and Demonstration


the Sale

Secondary Functions

Prospecting Database and knowledge management Self management Handling complaints Providing service Relationship management.

Sales Process Personal Selling

The Opening Need and problem identification Presentation and demonstration Dealing with Objections Negotiations Closing the Sale Follow Up

The Opening

factors are likely to be important?

Punctuality Attire Body Language Opening Remarks

Need and Problem Identification

Understand Needs

the customers requirements

Analysis Types

Question Avoid

Product Presentation!



questions Closed questions Specific questions Probing questions Hypothetical questions Reflective questions Leading questions.


Question Funnelling


Presentation and Demonstration



Demonstrations Guarantees Trial


Dealing with Objections

Listen and do not interrupt

Agree and counter Question the objection Dealing with Objections

The straight denial Forestall the objections

Hidden Objections


high but be realistic Concession for concession Behavioural skills


of buyers techniques

Shotgun The future looks bright Noahs Ark


Close the Sale

The level of buyers purchase intentions throughout a sales presentation

Close the Sale

Ask for the order Summarise and ask The alternative close Dealing with Objections The concession close The objection close

Action agreement

Delivery Installation Training Reassurances Referrals?


Leaders have a strong, defined sense of purpose. Leaders are affective communicators. Leaders are persistent and hard working. Leaders are self-aware. Leaders are learners. Leaders love their work. Leaders inspire others. Leaders establish human relationships. Leaders are risk takers. Leaders are keen to help others attain their goals. Leaders have the ability to motivate and inspire salespeople to grow and learn.
Futrell, C.F.(2000) Sales Management, Dryden Press, Orlando, FL.

Definition of a Leader
A person who has commanding authority or influence.

A person who influences a group of people towards the achievement of a goal.

Definition of a Manager
A person who has control or direction of an institution, business, etc., or of a part or division of it.

The act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization.

Six leadership styles and key characteristics

Retail Management and Leadership

1. 2. 3. 4.

5. 6.

Understand that there is no such thing as a natural-born leader- trainings required. Explain to your retail managers that being a leader is different from being a manager. Teach your leaders how to communicate messages to their employees, customers and contacts. Communicate with your retail managers how they can possess other leadership skills such as enthusiasm, confidence, courage, pride, adaptability and sincerity. Motivate your employees to be better leaders by rewarding them for their success. Continue to develop leaders.

Components of a training programme

Types of

compensation Plan

Creatures of Habit Satisfiers Trade-off-ers Goal-orientated Money-orientated

Compensation Plans
Fixed salary Commission Only Salary Plus Commission