how to motivate the sales force and how to apply various theory in the corporate world

1. MOTIVATING THE SALES
FORCE
PRESENTED BY: NAVEEN DHANAWAT
NISHANT
RISHIKA SAHU
PRATIBHA
PRIYANSHU

2. What is motivation....
 Motivation is the word derived from the word ’motive’ which means
needs, desires, wants or drives within the individuals.
 It is the process of stimulating people to actions to accomplish the
goals.
 Motivation is a theoretical construct, used to explain behaviour

3. Motivating the Sales Force
Understanding motivation
Motivation should be understood at two levels:
What motivates salespeople How salespeople choose their action
(the reasons behind the intensity (the direction or decision to engage in
and persistence of mental and specific actions in specific
physical effort expended) circumstances)

4. MOTIVATIONAL THEORIES...
 A concept that describes the activation of goal-oriented
behaviours in humans.
Some theories are as fallows:
 Maslow's hierarchy of needs
 Hertzberg’s dual-factor
 Vroom's expectancy theory
 Adam’s Equity theory

5. Motivational theories addressing the issue:
“what” motivates salespeople
MASLOW'S HIERARCHY OF NEEDS
Esteem needs
Belongingness needs
Security needs
Physiological needs
Self-actualisation
needs
Physiological needs (e.g., basic salary);
security needs (e.g., pension plan);
belongingness needs (e.g., friends in work group);
esteem needs (e.g., job title);
self actualisation needs (e.g., challenging job).

6. HERTZBERG’S DUAL-FACTOR
 Motivation factors (e.g., achievement, recognition, responsibility)
 Hygiene factors (e.g., supervision, pay, job security, working
conditions)
 The theory argues that:
 The motivation factors or motivators are the primary causes of
motivation and address the question “why work harder”;
 The hygiene factors are necessary conditions to achieve a state of
neutrality and address the question “why work here”.

7. HYGIENE FACTORS
 Pay and Benefits
 Company Policy and Administration
 Relationships with co-workers
 Physical Environment
 Supervision
 Status
 Salary
 Job Security

8. Motivational theories addressing the issue:
“how do salespeople choose their actions?”
VROOM'S EXPECTANCY THEORY
 Argues that 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
the attractiveness of that outcome to the individual
 Motivation = function of (Expectancy x Instrumentality x Valence)
 Expectancy is the salesperson’s perception that a certain amount of
effort will lead to successful performance (e.g., Can I do it?)
 Instrumentality refers to salesperson’s perception of the probability that
performance will lead to certain outcomes or rewards
(e.g., What do I get for doing it?)
 Valence is the perceived attractiveness or unattractiveness of an
outcome or reward (e.g., How much do I value the reward?)

9. Adam’s equity theory
Equity (inequity) is defined as the belief that one is treated fairly
(unfairly) in relation to others.
A salesperson’s choice of effort to be expended is a result of a
comparison between his output-input ratio and the output-input ratios
of others.
Output of A (e.g., pay, recognition) Output of B (e.g., pay, recognition)
Input of A (e.g., effort, loyalty) Input of A (e.g., effort, loyalty)
A salesperson who perceives to be inequitably treated can change
his input, output, alter the perceptions of self and/or others, change
comparisons or leave the situation.

10. Salespeople are motivated by different needs.
 Need for status (e.g., need for recognition and promotion)
 Need for control (e.g., need to be in control and influence others)
 Need for respect (e.g., need to be seen as experts who can give advice)
 Need for routine (e.g., need to follow a routine that must not be interrupted)
 Need for accomplishment (e.g., need more money and challenges)
 Need for stimulation (e.g., need to seek outside stimulation and challenges)
 Need for honesty (e.g., need to believe in the rightness of their practices)

11. Contents/ Techniques of
Motivation
 Motivational tools should satisfy at least two criteria.
a) Should generate extra effort that will help the company to achieve
its objectives
b) Must increase job satisfaction among salespeople
 A manger must know what techniques can be applied so that he
can motivate his sales people

12. Contents/ Techniques of
Motivation
 Financial Motivators : Financial motivation relates to the way for sales
person in which an organization uses compensation structure to motivate
workers to high performance.
Some are as follows:
 straight salary,
 pay per hour,
 pay per production,
 commission,
 performance bonuses,
 profit sharing

13.  Non financial motivation: Non financial motivation is related
with the sales person in which he is satisfied by Recognition of
work done by him.
Some are as follows:
 Participation
 Status
 Competition
 Job Enrichment appreciation and non monitory recognisition.