Apply contemporary theories of motivation to sales management 3.. Applying Contemporary Motivation Theories To Twenty-first Century Sales Management There are three broad classical sch
Trang 2Digital Multimedia PowerPoint Lectures for
Sales Force Management
Prepared by:
Dr Rajiv Mehta Professor of Marketing New Jersey Institute of Technology
Newark, N.J.
Trang 3Chapter 11:
Sales Force Motivation
Trang 4Learning Objectives
When you finish this chapter, you should be
able to:
1 Understand the nature of motivation
2 Apply contemporary theories of motivation to
sales management
3 Use reward and incentive programs to motivate
salespeople
4 See how sales contests and sales meetings can
motivate salespeople and learn basic guidelines
for coordinating them
5 Apply organizational commitment, career stage,
and empowerment to motivating salespeople.
Trang 55 Copyright ©2020 John Wiley & Sons, Inc
Introduction
But what is motivation?
What is the nature of motivation?
What motivation theories can sales managers use to augment
Trang 6Foundations of Motivation
Key features of motivation include:
§ Direction, which means tasks on which
the individual will focus effort.
§ Intensity, which refers to the amount of
physical and mental effort expended
on a given task, and
§ Persistence, which refers to the duration
of the effort an individual will exert.
Trang 7Applying Contemporary Motivation Theories To
Twenty-first Century Sales Management
There are three broad classical schools of thought about motivation that are germane to sales force management:
1
Content Theories
3
Reinforcement Oriented Theories
2
Process Theories
Contemporary Motivation Theories
• Dual Factor Theory
• Also known as Organizational Behavior Modification Theory
Trang 8Maslow’s Hierarchy of Needs
Maslow’s well-known hierarchy
of needs theory contends that
people are motivated by a
hierarchy of psychological
growth needs
The gratification of needs at one
level in the hierarchy activates
needs at the next higher level
Higher Level Needs
Esteem Needs
Social Needs Safety Needs
Physiological Needs
Actualization
Self-Lower Level Needs
Can you think how this theory can be used by sales managers to motivate
salespeople?
Trang 99 Copyright ©2020 John Wiley & Sons, Inc
Maslow’s Hierarchy of Needs
Physiological needs for human survival,
food, drink, shelter, warmth, clothing, etc
Safety needs for security, such as
medical and fear
Social needs and involve feelings of
belongingness to a family, group or
community
Self-esteem needs involve dignity,
achievement, desire for reputation and
Esteem Needs
Social Needs Safety Needs
Physiological Needs
Actualization
Self-Lower Level Needs
Can you think how this theory can be used by sales managers to motivate
salespeople?
Trang 10Three need categories are posited by ERG theory:
1 Existence, which is similar to Maslow’s physiological and safety needs
2 Relatedness, which is similar to social and esteem needs, and
3 Growth, which is similar to self-actualization needs
Like hierarchy of needs theory, ERG proposes that individuals focus on higher-level needs as lower-level ones are satisfied; unlike need
hierarchy theory, though, it suggests that people can move up and
down the three-part hierarchy
Trang 112
Need For Achievement Needs Theory
Needs theory focuses on the following to motivate salespersons:
1. The need for power reflects the drive to dominate, influence, and have
authority to control others.
2. The need for achievement is the strong urge to master and accomplish
difficult tasks.
3. The need for affiliation consists of the desire to establish friendships, to
have close working relationships with peers as well as customers, and to avoid conflict
Trang 12Dual Factor Theory (AKA Motivation-Hygiene Theory)
1
Motivation Factors Dual Factor Theory Hygiene Factors 2
Dual Factor theory focuses on motivation factors and hygiene factors to
motivate salespersons:
Sources of satisfaction are called motivators because they are
necessary to stimulate individuals to make superior efforts They
include responsibility, achievement, recognition, and opportunities for growth and advancement
When present, they motivate salespeople; if lacking, they demotivate them
Trang 13When perceived as adequate or better, hygiene factors do not
actually induce positive motivation in salespeople Their absence,
however, leads to salesperson dissatisfaction and demotivation
1
Motivation Factors Dual Factor Theory Hygiene Factors 2
Trang 14Applying Contemporary Motivation Theories To
Twenty-first Century Sales Management
2 Process theories, which emphasize the kind of goals and rewards that
motivate people and explain the thought process of employees and identify actions that fulfill their needs, are:
2
Process Theories
Contemporary Motivation Theories
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Equity Theory
Equity theory of motivation suggests that
salespeople compare their relative work
contributions and rewards with those of other
individuals in similar situations
Salespeople experience inequity when they
feel either under- or over-rewarded for their
contribution relative to that of others.
Salespeople who feel under-rewarded
decrease their work efforts
Salespeople who feel overpaid tend to
increase theirs.
Trang 16Expectancy Theory
Expectancy theory proposes that
individuals contemplate the
consequences of personal actions
in choosing different alternatives
to satisfy their needs
Motivation (or effort) is a function
of three elements:
1 Expectancy
2 Instrumentality, and
3 Valence
Trang 1717 Copyright ©2020 John Wiley & Sons, Inc
Ei = Expectancy is the salesperson’s perception that
exerting a given level of effort will lead to higher
achievement.
Ij = Instrumentality is the salesperson’s estimate of
the probability that achieving a certain level of
improved performance will lead to the attainment
of certain rewards.
Jk = Valence is the desirability of a potential
outcome or reward that the salesperson may
receive from improved performance.
Trang 18Expectancy Theory
Basically, what this implies is that sales
managers need to ensure salespersons that:
1 Exerting effort will leads to higher
achievement
2 Improved performance will lead to the
attainment of certain rewards, and
3 Most importantly ensure that the rewards
that are offered are actually desirable, if
not salespersons will not expend higher
effort
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Attribution Theory
Attribution theory explains that people
want to know why an event occurred and
why they succeeded or failed at a certain
task
An internal attribution is a reason within the
salesperson that could affect performance
(ability, effort, skill, and experience)
An external attribution is an explanation
that lies beyond the salesperson’s realm of
control (luck, territory or task difficulty)
The outcome: salespeople can choose
either to work harder or to work smarter.
Trang 20Goal-Setting Theory
Goal-setting theory attempts to increase motivation
by linking rewards directly to salespersons’ goals
Sales managers should set goals:
1 For individual salespeople
2 That are moderately difficult to achieve, and
To implement goal setting, sales managers should:
1 Involve the salesperson in the goal-setting process to
set realistic goals
2 Meet and reset goals if conditions change
Trang 21Applying Contemporary Motivation Theories To
Twenty-first Century Sales Management
3 Reinforcement-oriented theories (or OBM)—rely on systematic
application of rewards or punishments to strengthen, maintain, or
eliminate behaviors
Sales managers can use the following four OBM approaches:
1 Positive reinforcement or a reward for a desired behavior.
2 Negative reinforcement or avoiding an undesirable outcome.
3 Punishment or sanction for displaying an undesired behavior.
4 Extinction or no positive reinforcement after an undesirable behavior.
1
Content Theories
3
Reinforcement Oriented Theories
2
Process Theories
Contemporary Motivation Theories
Trang 22Using Rewards and Incentive Programs for
Sales Force Motivation
5.
Recognition
4.
Intrinsic Rewards
3.
Promotion Opportunities
2.
Sales Incentive Programs
1
Extrinsic Rewards
Reward and Incentive Programs
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Sales Force Motivation Strategies and Tools
Sales managers can use other sales motivation strategies and tools
that go above and beyond rewards
But the two most popular motivational strategies are:
a Sales contests, and
b Sales meetings
1.
Sales Contests Motivation Strategies Sales Meetings 2.
Trang 24a Increase the number of new customers
b Develop sales of a new product
c Counteract sales slumps due to seasonal
variations
d Clear overstocked inventory
Trang 2525 Copyright ©2020 John Wiley & Sons, Inc
Sales Contests
2 Contest Themes
Sales managers should ensure that
contest themes are:
Trang 26Sales Contests
3 Contest rules
Formulate contest rules to clarify
goals and prevent abuses
Rules should also be phrased so
that they discourage salespeople
from holding back orders before
the contest, applying undue
pressure on buyers during the
contest, or suggesting that buyers
can cancel their orders after the
contest
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Sales Contests
4 Contest rewards and prizes.
Contest prizes should include items
that most of the participants want,
or the contest will not be
Trang 28Sales Contests
5 Salesperson participation.
Most contests don’t pit one salesperson against
another, but award prizes for achieving
certain standards of performance
Prizes must be at least attractive enough to
motivate because token prizes with little
recognition value may kill the motivational
effects of the contest
6 Contest duration.
Usually last between one and five months
Contests that occur too regularly (at the same
time each year) may come to seem routine
and lose their incentive value
Trang 2929 Copyright ©2020 John Wiley & Sons, Inc
Sales Contests
7 Promoting the contest.
To build enthusiasm, the contest
should be promoted with personal
letters, and e-mails from
management can announce and
reinforce the imminent contest
The letters should announce the
exact nature and rules of the
contest to all salespeople
simultaneously
Trang 30Sales Contests
8 Assessing contest effectiveness.
Management should assess whether the
contest objectives were achieved, such as
those identified earlier under the purposes of
the contest
9 Potential pitfalls of contests
Sales managers should recognize that
contests can become so routine that they are
expected, and sales reps consider awards as
part of their yearly compensation
Contests can temporarily increase sales and
thereby provide a means of disguising sales
force shortcomings or sales management
deficiencies
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Why Some Sales Contests Are Losers
Evidently, a lot goes into planning sales
contests Even so, some sales contests fail
because of:
a Overestimating goals
b Neglecting to publicize the contest
c Rewarding only the top salespeople
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Sales Meetings
2 Planning sales meetings.
Planning sales meetings involves
several tasks, such as:
a Establish meeting goals
b Select a theme on the purpose of
the meeting
c Develop a tentative agenda or
program for the meeting
d Develop and finalize the program
and budget
Trang 34Sales Meetings
3 Competitive spirit.
The sales meeting is an excellent
opportunity for management to
recognize sales accomplishments, to
announce the names of sales leaders,
and to award prizes to outstanding
salespeople and sales managers
4 Specialized training.
National or regional sales meetings
offer management an excellent
opportunity to train all salespeople
simultaneously (e.g., regarding how to
introduce a new product or customer
strategy)
Trang 3535 Copyright ©2020 John Wiley & Sons, Inc
Sales Meetings
5 Change of pace.
Getting away helps salespeople unwind
Many firms hold their sales meetings at
resort sites, where salespeople can enjoy
golf, tennis, swimming, and health club
facilities between business meetings
6 Video conferences.
Setting up a video conference is an
efficient way to link several different
locations together for an interactive sales
meeting rather than bringing the entire
sales force of an organization together
under one roof
Trang 36Additional Perspectives In Twenty-First Century
Sales Force Motivation
3.
Learning vs
Performance Orientation
2.
Organizational Climate
1
Organizational and Job Commitment
4.
Salesperson’s Career Cycle
Additional Motivation Perspectives
Additional perspectives in 21st century sales force motivation, are:
Trang 3737 Copyright ©2020 John Wiley & Sons, Inc
Salesperson’s Career Cycle/Stages
3.
Maturity or Maintenance Stage
2.
Development or Establishment Stage
1
Preparation or Exploration Stage
4.
Decline or Disengagement Stage
Salesperson Career Cycle/Stages
► Salespeople need to be managed according to four career stages they pass through.
Trang 382 Few opportunities for promotions or
augmented responsibility are available
in the firm.
3 The individual has a preference or some
constraint that prevents him or her from
taking on added responsibility.
Trang 3939 Copyright ©2020 John Wiley & Sons, Inc
Note
This Electronic Presentation To Be Used With:
Hair, Joe, Rolph Anderson, Rajiv Mehta, & Barry Babin (2020), “Sales
Force Management,” 2nd Ed Hoboken: John Wiley & Sons
(ISBN-13: 9781119702832)
Text/images may not be modified or reproduced in any way without
prior written permission of the publisher www.wiley.com/go/permissions
Trang 40Copyright © 2020 John Wiley & Sons, Inc.
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