Ssm lecture-14 (motivation of the sales force)
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This document discusses motivating salespeople and sales forces. It covers: 1. What motivates salespeople, including intrinsic factors like enjoying their job and extrinsic factors like pay and benefits. 2. Theories of motivation, including Maslow's hierarchy of needs, Hertzberg's two-factor theory, and Adam's equity theory. 3. Ways to motivate salespeople, such as financial rewards, recognition, training opportunities, and balancing work and personal life.
Ssm lecture-14 (motivation of the sales force)
- 1. 07/06/10 1 By : Prof. Amit Kumar
- 2. 07/06/10 2 “A student pursuing management education from IILM- Graduate School of Management, for example may find himself or herself placed in a firm as a Sales Manager. Our goal is to prepare the student for the exciting challenges related to leading sales organizations in today’s hyper-competitive global economy”. IILM-GSM Importance of this course Selling & Sales Management
- 3. 07/06/10 IILM-GSM Selling & Sales Management
- 4. 07/06/10 Contents • What Motivates Salespeople? • Process of Motivation • Motivational Drives • Theories of Motivation • The Dos and Don’ts of Motivating • Financial & Non-financial Rewards • Designing a Motivational Program IILM-GSM Selling & Sales Management Motivation of Sales Force
- 5. 07/06/10 What Motivates Salespeople? • In an effort to understand what motivates the students to attend a class session. Your instructor may ask, ‘Why are you attending class today?’ Possible responses from the students might include: – I want to learn how to become a sales manager. – I am concerned that if I’m not here I’ll lose points. – I needed a class to graduate, and this time fit my schedule. – I have a special friend who is also taking the class, and I like to be with that person. – I heard the instructor was fun. IILM-GSM Selling & Sales Management Motivation of Sales Force
- 6. 07/06/10 What Motivates Salespeople? • What if you were pose the same sort of question to sales representatives: ‘Why do they go to work selling every day?’ The possible responses you might hear include the following: – I like to sell, and I enjoy my job. – It pays the bills. – Without this job, my family would not have insurance, and we need it. – I am in a sales contest, and I want to win the prize in front of my peers. – My customers are counting on me to help them solve some of their problems at work. IILM-GSM Selling & Sales Management Motivation of Sales Force
- 7. 07/06/10 Motive Behaviour Goal Tension Reduction Process of MotivationProcess of Motivation IILM-GSM Selling & Sales Management Motivation of Sales Force
- 8. 07/06/10 Motivational Drives • Principles • Security • Achievement • Approval • Loyalty • Advancement • Leadership • Human behaviour IILM-GSM Selling & Sales Management Motivation of Sales Force
- 9. 07/06/10 Theories of Motivation • ContentContent • ProcessProcess • ReinforcementReinforcement IILM-GSM Selling & Sales Management Motivation of Sales Force
- 10. 07/06/10 Content Theories • Need hierarchy theory • Hertzberg’s two factor theory • Alderfer’s ERG theory • McGregor Theory X and Y • Z theory of William Ouchy IILM-GSM Selling & Sales Management Motivation of Sales Force
- 11. 07/06/10 Physiological need Security need Social need Esteem need Self actualization need Maslow’s Hierarchy of Needs IILM-GSM Selling & Sales Management Motivation of Sales Force
- 12. 07/06/10 Sales managers can apply this concept by using reinforcements that meet needs at each level. • Physiological- salary and bonuses. • Security- Insurance (health, life, disability) and retirement plans. • Social or belongingness- program that balance work with life and family commitment ( e.g. flexible hours, job sharing, on-site daily care, paid parental leave) • Esteem- program that recognize individuals for their sales efforts and accomplishments. • Self-Actualization- satisfaction with balance between accomplishments at work and balance with home life. IILM-GSM Selling & Sales Management Motivation of Sales Force Maslow’s Hierarchy of Needs
- 13. 07/06/10 Hertzberg's Two-Factor Theory • Motivating factors- were found to be intrinsic to the job and included: achievement, recognition for achievement, the work itself, responsibility, advancement or growth. • Hygiene factors- were found to be extrinsic to the job and included company policies and administration, supervision, relationship with supervisor, work conditions, salary, status and security. IILM-GSM Selling & Sales Management Motivation of Sales Force
- 14. 07/06/10 Process Theories • Equity theories • Expectancy theories IILM-GSM Selling & Sales Management Motivation of Sales Force
- 15. 07/06/10 Reinforcement Theories • Hull’s drive theory • Skinner’s reinforcement theory IILM-GSM Selling & Sales Management Motivation of Sales Force
- 16. 07/06/10 Adam’s Equity Theory Theory propose that a sales rep weights their perceived inputs and outcomes in comparison to others and decides if their effort/reward ratio is equitable or fair, and then realigns their efforts to be rewarding. – Inputs- their perception of their training, experience, effort, and anything they believe they contribute to the organization. – Outputs- their perception of their compensation, benefits, status, job security, satisfaction, and anything else they receive. – Balancing- a sales representative would compare their input/output ratio & compare it with different salesperson. IILM-GSM Selling & Sales Management Motivation of Sales Force
- 17. 07/06/10 The resulting ratio could result in three possibilities: 1. Equity: input/output ratio is equal to others’ input/output ratio. Reps are motivated to keep doing what they do. 2. Overpayment inequity: input/output ratio is greater than others . Sometimes reps will increase their efforts. 3. Underpayment inequity: input/output ratio is less than others. Reps either decrease their efforts, ask for more or leave to find more equitable job. IILM-GSM Selling & Sales Management Motivation of Sales Force Adam’s Equity Theory
- 18. 07/06/10 The Dos and Don’ts of Motivating Your Sales Representatives The are the suggestions sales managers can use to motivate their sales force. • Hire self-motivated people: The old adage ‘Surround yourself with good people and you will never have any problems too big to achieve’ would seem to fit. • Show Trust • Capitalize on unique strengths of each member of sales force • Encourage some people to become experts • Empower salespeople to make their own decisions • Ensure that you offer rewards that are valued by all IILM-GSM Selling & Sales Management Motivation of Sales Force
- 19. 07/06/10 Financial & Non-financial Rewards Imagine that you just won a contest your instructor held as part of your sales management class or in the personal selling class. How would you like to be rewarded for your efforts? Would you like your reward to be an award, extra points to improve your grade, a meal at a nice restaurant, public recognition, a day off from class, an opportunity to attend a training seminar at IIM or a weekend trip. • There are many ways to reward performance. Sales and Marketing Magazine has run a monthly column discussing what motivates salespeople. Finding are as: IILM-GSM Selling & Sales Management Motivation of Sales Force
- 20. 07/06/10 Financial & Non-financial Rewards What Motivates You as a Salesperson? • Achieving a team goal and all of us going on a four-day cruise. • Receiving a gift from the company president at a company-wide meeting. • The owner verbal recognition. • A work environment that lets me work part of the day at homes to balance my family needs. • A trip to Hawaii for reaching a sales goal. • Sending me to a seminar that helps me become more productive. • Quarterly bonuses. The extra money helps with the bills. • Being selected for the president’s club. IILM-GSM Selling & Sales Management Motivation of Sales Force
- 21. 07/06/10 Designing a Motivational Programme • Programme objective • Motivational tools • Individual methods • Group methods • Communication • Feedback IILM-GSM Selling & Sales Management Motivation of Sales Force
Editor's Notes
- #3: To arm or prepare in advance of a conflict The part of the arm between the wrist and the elbow.
- #19: deadbeat ( ) Slang . n. One who does not pay one's debts. A lazy person; a loafer. adj. Not fulfilling one's obligations or paying one's debts: a.
- #21: What individual say about what motivates them…other rewards will be discussed in next unit..about compensation