Motivating the sales force: Motivating the sales force Chapter 14 PowerPoint Presentation: Prof. Sunitha Ratnakaram, Associate Professor, VVSB MBA, M. Phil, MFM, M. SC. (Psychology), UGC – JRF , (Ph. D) In this chapter we will discuss:: In this chapter we will discuss: Concept of motivation Motivational theories Motivation and the productivity of the sales force Effect of personal characteristics on sales force motivation Sales motivational mix Motivating the sales personnel at different stages of their career Introduction : Introduction Importance of personal selling as a tool in promotional mix Need of self-motivation for a sales person When sales manager come in to the picture? How to motivate? (Carrot-stick-Donkey) Concept of motivation: Concept of motivation Motivation Movere to move Process that instigates goal-directed behavior Need Drive Goal Achievement In sales force management, motivation refers to the amount of effort a sales person is willing to expend to accomplish the tasks associated with his job. Motivational theories: Motivational theories Maslow’s Hierarchy of needs theory Herzberg’s two-factor theory Goal setting theory Expectancy theory Job design theories Comparison of Maslow’s and Herzberg’s Theories of motivation: Comparison of Maslow’s and Herzberg’s Theories of motivation Maslow’s Hierarchy of needs Herzberg’s Two-Factor theory Self actualization needs Motivators: Responsibilities Challenging work Recognition achievement Esteem needs Social needs Maintenance factors: Job security Good pay Working conditions Type of supervision Interpersonal relations Safety & security needs Physiological needs PowerPoint Presentation: (MBO) - Edwin Locke How it is useful in motivating sales persons?: How it is useful in motivating sales persons? Generally helps at the time of territory realignments Due to gain or loss of territory How to deal with the gain of territory? How to deal with the loss of territory? Assumptions of the theory: Assumptions of the theory It assumes that all individuals have the same needs and can be satisfied by ensuring certain job characteristics. What’s the reality? Along with job characteristics, individual's age, physical and mental capabilities also influences job satisfaction. Motivation and the productivity of the sales force: Motivation and the productivity of the sales force Two prime determinants of sales force performance Ability to perform Willingness to perform Productivity = Output/Input Sales productivity = Sales revenues / Sales expenses Influencing factors of sales force productivity: Influencing factors of sales force productivity Differences between manufacturing productivity and sales force productivity Influencing factors of sales force productivity Customer reaction and volatility of market Time taken to convert prospect in to customer Work environment Work methods Selling skills Sales person motivation Motivation and the productivity of the sales force: Motivation and the productivity of the sales force Need of self-motivation for a sales person Influence of motivation of productivity How to motivate sales force and boost productivity: How to motivate sales force and boost productivity: How to motivate sales force and boost productivity Sales quotas Sales contests Compensation plans and reward systems Innovative ideas Fun work places Improving communication Participation in decisions pertaining to improvements in selling techniques Job enrichment helps in self actualization Share in profits Effect of personal characteristics on sales force motivation: Effect of personal characteristics on sales force motivation Can the manager influence all the sales personnel with same technique? Whether cash incentives suffices all the motivational needs? Differences between cultures ( American Vs. Japanese) What’ s the alternative? Study the personality type: Study the personality type Competitor Achiever Ego driven Service oriented Competitor: Competitor Thrive on beating the competition, believes only win-lose philosophy Sales contests, plaques and perks are the motivators Examples: IBM’s Golden circle program for top 10% MetLife Insurance’s Holiday trip Sales managers usually takes this as advantage to make sales persons excel in their efforts. Achiever: Achiever Self motivators, sets their own goals, good team players Its difficult for sales managers to motivate them as they are self-motivated. Ways are Continuous challenges Plan for their professional development Strengths & weaknesses analysis Can be groomed to take on leadership and managerial roles. Ego driven: Ego driven Plaques and perks do not motivate them and are super performers Likes to be given importance, participate in decision-making Can become good coaches/mentors Can be made a part of advisory committee Service oriented: Service oriented Have empathy and the ability to build relationships. Helps in maintain territories even in stiff competition Mostly neglected by the organization as the performance is measured based on sales quotas. But in today’s customer oriented world neglecting these people is suicidal. Can be motivated by publicizing their customer service efforts, giving perks and larger sales expenses etc. Sales motivational mix: Sales motivational mix Views of managers on motivating sales people “Good sales people are born” “Money is the prime motivator” Differences in sales peoples and sales managers opinions on motivators and de motivators What constitutes motivators?: What constitutes motivators? Rewards and recognition programs Sales culture Ceremonies Stories of successful sales persons Symbols such as gifts & plaques (E.g. Mary Kay cosmetics “Cinderella gift”) Sales training which well-equips Leadership style Compensation of the sales personnel A Fair & just performance evaluation system Motivating the sales personnel at different stages of their career: Motivating the sales personnel at different stages of their career Passage of time brings various changes in one’s attitudes & perceptions towards life and career. Need of studying career stages Stages as per career stage model Exploration stage Establishment stage Maintenance stage Disengagement stage PowerPoint Presentation: Career stages and growth in career of a sales person Growth in career of the sales person Age of sales person (in years) Exploration stage Establishment stage Maintenance stage Disengagement stage 20 30 40 50 Motivating the sales personnel at different stages of their career: Motivating the sales personnel at different stages of their career Each stage will have specific career concerns, depending on how he perceives, interprets and reacts to the environment at each stage What is the need of motivating sales people? For greater selling efforts Enhanced sales performance PowerPoint Presentation: Exploration Establishment Maintenance Disengagement Career concerns Finding an appropriate occupational field Successfully establishing a career in a certain occupation Holding on to what has been achieved. Reassessing career, with possible redirection Completing one’s career Developmental tasks Learning the skills required to do the job well. Becoming a contributing member of an organization using skills to produce results. Adjusting to working with greater autonomy. Developing creativity & innovativeness Developing broader view of work and organization. Maintaining a high performance level Establishing a stronger self-identity outside of work. Maintaining an acceptable performance level Personal challenges Must establish a good initial professional self-concept Producing superior results on the job in order to be promoted. Balancing the conflicting demands of career and family Maintaining motivation though possible rewards have changes. Facing concerns about aging & disappointment over what one has accomplished. Maintaining motivation & productivity Acceptance of career accomplishments. Adjusting self-image. Psychosocial needs Support. Peer acceptance. Challenging position. Achievement. Esteem. Autonomy. Competition. Reduced competitiveness. Security. Helping younger colleagues Detachment from organization & organizational life. Career stage characteristics Exploration stage: Exploration stage 20 – 30 years of age group Finding right occupation which suits his abilities is the major concern Self-image is created by showing competence Stress arises due to no. of career options which leads to job hopping Exploration stage – Contd.: Exploration stage – Contd. Generally they are dissatisfied with the job due to lack of experience and are skeptical regarding incentives It’s a challenge for sales manager to motivate them Establishment stage: Establishment stage Generally lies between 30 – 40 years of age Settling down and advancing in it is the major concern because of social and family pressures Career advancement is the major pressure, desirous of promotion Balancing work and personal life is the challenge Establishment stage – Contd. : Establishment stage – Contd. Advancement depends on the fact that whether the organization is having suitable positions Sales management is one of the choice. If the product reaches maturity stage sales person may switch over Creation of senior sales positions, dual career options (specialized non management positions) is the option which can avoid turn over Maintenance stage: Maintenance stage Around 40 – 50 years age group Psychological stress due to physical aging, limited growth opportunities, technical obsolescence etc. Tries to update him self to remain current status Doesn’t feel the need of competing with peers as they are satisfied with the present career position Maintenance stage – Contd.: Maintenance stage – Contd. What ever may be the level of performance he might have achieved, the sales person is satisfied and will not try to improve the position Some may continue & some may choose an entirely new occupation Difficult for sales manager to motivate them Disengagement stage: Disengagement stage Attempts to withdraw from the career No longer interested in maintaining the position, plans for retirement Some may go for early retirements & involve in activities that give personal satisfaction Sales manager can do very little to motivate them.