Sales Motivation

Copyright 2001 by Harcourt, Inc. All rights reserved.

PART V

DIRECTING THE
SALES TEAM
CHAPTER 12
MOTIVATING SALESPEOPLE
TOWARD HIGH PERFORMANCE

That the definition of motivation includes the motivational mix
and all of its various elements.
The powerful motivating influence of a high-performance
sales culture.
The importance of realizing that salespeople have basic needs
that, when met are strongly motivating.
The model for a salespersons behavior.
The benefit of knowing salespeople personally.
That not every member of a sales force can be motivated.
LEARNING OBJECTIVES
An enthusiastic and motivated sales force is the best possible
foundation for successful achievement of sales objectives. This
chapter should help you understand:
MOTIVATION
Understand what motivation is all about.
Develop a high-performance sales culture.
Know salespeoples basic needs.
Realize that salespeople want to know what
is in it for them.
The components of a motivational system:
Get to know the personal side of
salespersons.
Always remember that motivational
coaching is needed for high performance.
Be realistic about motivating salespeople.
The components of a motivational system:
continued
UNDERSTAND WHAT
MOTIVATION IS ALL ABOUT
What arouses salespeoples behavior?
What influences the intensity of the
behavioral arousal?
What directs the persons behavior?
How is this behavior maintained over time?
In any discussion about the motivation of
salespeople, the following four questions need to
be considered:
Motivation refers to the arousal, intensity,
direction, and persistence of effort directed
toward job tasks over a period of time.
THE SALES MOTIVATIONAL MIX
Motivational Mix The arousal, intensity,
direction, and persistence of peoples behavior.
Extrinsic Outcomes Rewards obtained from
individuals environment.
Intrinsic Outcomes Occur purely from the
performance of the task itself.
TABLE 12.1 THE SEVEN COMPONENTS OF THE SALES MOTIVATIONAL MIX
AND EXAMPLES OF EACH MOTIVATIONAL METHOD
1. Sales culture
Ceremonies and rites
Stories
Symbols
Language
Challenging work assignments
Recognition
5. Sales Training
Initial
Ongoing
2. Basic compensation
Salary
Commissions
Fringe benefits
Sales meetings
6. Leadership
Style
Personal contacts
3. Special financial incentives
Bonuses
Contests
Trips
7. Performance evaluation
Method
Performance
Activity
4. Nonfinancial rewards
Opportunity for promotion
Publicity

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.
Ceremonies and Rites
IMPLEMENTATION OF A SALES CULTURE
Ceremonies and rites are the elaborate,
planned activities that make up a special
event and often are conducted for the
benefit of an audience.
Stories
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.
Stories
Symbols
A symbol is one thing that represents
another thing.
Stories
Symbols
Language
Many companies use a specific saying,
slogan, metaphor, or other language form
to convey special meaning to employees.
CULTURE IMPLEMENTING 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
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

TABLE 12.2 EXAMPLES OF CULTURAL VALUES AND BELIEFS AND THEIR
IMPLEMENTATION WITHIN THE SALES FORCE
WHATS 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.
Expectancy is the salespersons 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.
WHAT IS THE PROBABILITY OF SUCCESS?
FIGURE 12.1 FOUR QUESTIONS SALESPEOPLE ASK TO DETERMINE HOW
MUCH EFFORT THEY WILL DEVOTE TO THEIR JOBS.
Motivation
to Work
What Is
the Probability
of Success?
Performance
Level
Will I Be
Rewarded
for Success?
Rewards
Intrinsic
Extrinsic
Are the
Rewards
Worth It?
Equity
Determination
Inputs vs. Outputs
Are the
Rewards
Fair?
Satisfaction
Intrinsic
Extrinsic
Feedback
The salespersons estimate of the probability that
achieving an improved level of performance
dimension will lead to increased attainment of a
particular reward or outcome may be defined as
instrumentality.
WILL I BE REWARDED FOR SUCCESS?
Valence for rewards refers to the value the
salesperson places on the reward.
ARE THE REWARDS WORTH IT?
Managerial Implications of Expectancy
Theory
1. Increase expectancies.
2. Make performance instrumental toward
positive outcomes.
3. Identify positively valent outcomes.
If inequity is perceived, the salesperson
may be motivated to restore equity using
one of four methods.
ARE THE REWARDS FAIR?
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.
If inequity is perceived, the salesperson
may be motivated to restore equity using
one of four methods. continued
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.
HOW TO FACILITATE EQUITY
1. Sales performance did not increase.
2. No important rewards were given for
meeting quota.
3. The rewards given for meeting quota were
not worth the extra work.
4. Treatment was not fair because one
persons rewards were the same as
anothers who worked harder.
An individual will tend to reduce the level of
effort if one of these situations is encountered.
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. Lower corporate citizenship.
4. More grievances and lawsuits.
5. Stealing, sabotage, and vandalism.
6. Poorer mental and physical health.
Quality of Work Life
Categories:
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.
Quality of Work Life continued
6. Constitutionalism, or the rights of personal
privacy, dissent, and due process.
7. A work role that minimizes infringement on
personal leisure and family needs.
8. Socially responsible organizational actions.
The term productivity as applied by QWL
advocates means much more than each
persons quantity of work output.
It also includes:
Levels of turnover
Absenteeism
Accidents
Thefts
Sabotage
Creativity
Innovation
Quality of work
Turnover refers to someone leaving their present
job.
Voluntary Turnover
FIGURE 12.2 CLASSIFICATION OF TURNOVER

Terminations
Nonvoluntary Voluntary
Desirable
(lowperformer)
Undesirable
(highperformer)
Controllable Uncontrollable
FIGURE 12.3 A SALESPERSONS BEHAVIORAL
MODEL HELPS ILLUSTRATE MOTIVATIONAL
PROCESS
E n v i r o n -
m e n t a l
F a c t o r s
1 .
O r g a n i -
Z a t i o n a l
F a c t o r s
2 .
P e r s o n a l
F a c t o r s
3 .
M o t i v a t i o n
t o w o r k
4 .
P e r f o r -
m a n c e
L e v e l
5 .
R e w a r d s
I n t r i n s i c
E x t r i n s i c
6 .
E q u i t y
D e t e r -
m i n a t i o n
7 .
S a t i s f a c t i o n
I n t r i n s i c
E x t r i n s i c
8 .
P a s t
e x p e r i e n c e s
P a s t
e x p e r i e n c e s
9 .
J o b
S e a r c h
1 0 .
V o l u n t a r y
T u r n o v e r
1 1 .
GET TO KNOW THE PERSONAL
SIDE OF SALESPERSONS!
UNDERSTAND THE SALESPERSONS
MOTIVATIONAL BEHAVIOR
MATCH PEOPLES MOTIVES WITH
INCENTIVES THEY VALUE
Incentives are aspects of the environment that
appeal to the salespersons motives and have
enough worth to motivate purposeful behavior to
obtain them.
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
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
Sales managers would do well to explore
different aspects of incentives. Several
things to consider are:
Some salespeople like material incentives
versus nonmaterial incentives.
The attraction to short-range incentives
versus long-range incentives.
Positive incentives in most instances
motivate more successfully than negative
incentives.
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.
Dont repeat the same programs over and
over.
Dont try to do everything at once.
MOTIVATIONAL COACHING IS
NEEDED FOR HIGH-
PERFORMANCE RESULTS
SALESPEOPLE HAVE BOUNDARY
POSITIONS
Salespeople are involved in meeting both the
needs of their customers and the needs of their
company.
Salespeople experience role ambiguity
when they do not possess the information
necessary to adequately perform their jobs.
Salespeople experience role conflict when
conflicting, inconsistent, or incompatible
job demands occur from two or more
people.
FIGURE 12.4 ROLE PERCEPTIONS INFLUENCE PERFORMANCE
Sales
Manager
Family
Customers
Company
Ro le
A m b igu i ty
Ro le
C o n f lic t
Effort Performance
Motivational TECHNIQUES
Teach teamwork
Empower
Communicate
Hear
Notice
Initiate integrity
Query
Unify
Exalt
Set standards
THE BOTTOM LINE
To achieve company and individual objectives, salespeople need
to be motivated.
The first component involves an understanding of the
motivational concept.
The second component in a motivational program is a high-
performance sales culture.
Salespeople have basic needs that influence behavior and lead to
goal attainment.
THE BOTTOM LINE
A realization that salespeople want to know whats in it for
them is the fourth component.
Knowing the theory of motivation is not enough.
Proper motivational coaching is the sixth component of the
motivational program.
Being realistic about motivating salespeople is the final part of
the program.

Sales Motivation

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Copyright 2001 by Harcourt, Inc. All rights reserved.

Copyright 2001 by Harcourt, Inc. All rights reserved.

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