Motivating the Sales Force
Lesson 7
Objectives
After completing Lesson 7 you should be able to:
1. To define motivation.
2. To discuss individual needs and how peoples needs differ.
3. To present a model of motivation that identifies the factors that increase sales
person satisfaction and motivation.
4. To explain the role of quotas, incentives and recognition programs in the
motivation process.
Lesson Notes
What is Motivation?
Motivation
• The driving force within individuals that impels them into action. This driving force is
produced by this state of “_____________” which exists as a result of an __________
What are the physical and psychological forces that propel people to behave in a
particular manner?
______________________________________________________________________
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______________________________________________________________________.
As a manager you need to think in terms of …
• “You get what you want; when you help others get what they want.
• A sales manager is more likely to get what they want (a high performing sales
rep) when they help the sales rep get what they want.
Performance = (opportunity X ability X motivation)
Opportunity = sales forecast
Why do people act as they do?
Behavior is a means to an end, with the “end” being the satisfaction of physiological or
psychological needs.
Can a Sales Manager Motivate a Sales Rep?
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Intrinsic motivation
- Any activity that we do because there is something enjoyable about that activity
- Motivation from within
- Behaviours performed due to interest and enjoyment
- The behaviour is an end in itself
- Cannot be created by a sales manager
Extrinsic motivation
- Behaviours carried out to attain contingent outcomes that lie outside the activity
itself
- The behaviour is a means to an end
Search for
knowledge and
understanding
To engage in an
activity to build or
achieve something
Social Contact
Travel
Can a Sales Manager Motivate a Sales Rep?
A sales manager: Create Tension
1. Can create tension and an extrinsic motivation
2. Cannot create intrinsic motivation
3. Can create an environment that will increase the likelihood that a sales rep will be
intrinsically motivated.
- Maslow’s hierarchy of needs shows that the managers need to focus on the base
needs first and then move to higher order needs
4. Create an environment that may increase the likelihood that a sales rep will be
motivated.
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5. Create an environment that will decrease intrinsic motivation.
•
Deadlines
•
Surveillance
•
Competition
•
Controlling Behaviour
•
Focusing only on outcomes
•
Double standards
What Motivates a Sales Rep?
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–
–
–
–
–
–
Positive feedback (even bogus positive feedback)
Focusing on behaviors rather than outcomes.
Creating a supportive environment.
Helping people believe in themselves.
Giving the sales rep flexibility.
Showing that you trust the sales rep.
Showing reps they are appreciated.
-
We seek a balance in our lives
We may be intrinsically motivated to pursue an activity today but not tomorrow
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
For company rewards and incentives (extrinsic) to have an impact on motivation,
salespeople must value those rewards
Effort/Performance link
Expectancy Theory
Building on the concept of “needs satisfaction,” individuals assess three conditional links.
That is, they will be motivated if the following three conditions can be met.
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1. Reward/Effort Link
2. Performance/Reward Link
3. Effort/Performance Link
1. Reward/Effort Link
- The reward must be of value to the sales person
2. Performance/Reward Link
- Do people understand the inputs of what will lead to better performance
- Are rewards conditional on performance or are there other variables impacting the
receiving of rewards
- Sales reps must feel that their performance is related, the achievement or
rewards/commission (locus of control)
- If the rewards are the same regardless of how good or bad a rep performs, then the
reward will not be a good motivator
3. Effort/Performance Link
-
Sales reps must feel that there is a relationship between their effort/performance
and the receiving of rewards/commission
The harder reps work the greater amount of rewards they will receive
If the rewards are the same regardless of how good or bad a rep performs, then
the reward will not be a good motivator
Common Problem:
Sales reps often fail to accurately link the proper type of effort with the performance
outcome
-
Sales reps may spend too much time on activities that have little impact on
performance
Thus, sales reps learn to work smarter
-
Greater effort alone does not lead to better performance
We must ask, what we are rewarding?
-
Are we rewarding
o Sales performance
o Behaviours that lead up to good sales performance
How Motivation Changes Throughout Ones Career
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______________________________________________________________________
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Selecting Motivational Tools (incentives)
No incentive or rewards will be influential if:
- the rewards are not perceived to be worth the effort,
- the rewards are inequitable,
- the rep does not perceives a direct correlation between the behavior and the reward.
Financial Rewards
1. Basic compensation plan
-
Basic compensation plan
o Salary
o Commissions
o Bonus payments
o Fringe benefits (trips, staff discounts)
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Sales Contests
o Get new accounts
o Sell specific overstocked products
o Get reps to launch new products
o Increase sales volume
 Open ended (no limit on number of winners)
 Closed ended (limited number of winners)
 Tiered (two or more levels of winners)
2. Sales Contests
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Sales Contest Cautions
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•
•
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May promote undesirable selling behaviors.
May harm staff morale.
Sales will drop after the contest.
Reps may ask buyers to hold-off on buying until the contest starts.
Nonfinancial Rewards
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