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
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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
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Exploration
Establishment
Maintenance
Disengagement
THEORIES OF
MOTIVATION
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Maslow’s Hierarchy of Needs
Herzberg’s Motivator/Hygene Theory
McClelland’s Three Needs Theory
Equity Theory
Expectancy Theory
MASLOW’S HIERARCHY
OF NEEDS
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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
Expectancy
REWARDS
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
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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
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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
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Sales volume
Profit based
Activity
Expense
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