1. Motivating the sales force
Chapter 14

2. 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

3. 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)

4. 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.

5. Motivational theories
1. Maslow’s Hierarchy of needs theory
2. Herzberg’s two-factor theory
3. Goal setting theory
4. Expectancy theory
5. Job design theories

9. 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

10. (MBO)
- Edwin LOckE

14. 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?

19. 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.

20. 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

21. 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

22. 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:

23. 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

24. 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?

25. Study the personality type
• Competitor
• Achiever
• Ego driven
• Service oriented

26. 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.

27. 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.

28. 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

29. 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.

30. 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

31. 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

32. 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

33. Growthincareerofthesalesperson
Age of sales person (in years)
Exploration
stage
Establishment
stage
Maintenance
stage
Disengageme
nt stage
20 30 40 50

34. 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

35. 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
Develop
mental
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
challeng
es
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.
Psychoso
cial
needs
Support. Peer
acceptance.
Challenging
position.
Achievement.
Esteem. Autonomy.
Competition.
Reduced competitiveness.
Security. Helping younger
colleagues
Detachment from
organization &
organizational life.
Career stage characteristics

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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

42. 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.