Part V

SALES FORCE
LEADERSHIP

Part V

SALES FORCE
LEADERSHIP

Chapter 11:

Chapter 11:

Motivating

Motivating

Salespeople

Salespeople

What is Motivation?

What is Motivation?



Drive to initiate an action.



The intensity of effort in an
action



The persistence of effort over
time.



Frequent rejection



Physical separation from company
support



Direct influence on quality of sales
presentation



Indirect influence on performance

Reasons for Motivating

Reasons for Motivating

Salespeople

Salespeople

What Goals are Most

What Goals are Most

Important?

Important?

Expand Visibility

of Sales

Increase

Sales Revenue

Enhance Company

Credibility

Build the Brand

43.9%

66.1%

31.9%

29.8%

How Successful Were You at

How Successful Were You at

Reaching Your Goals?

Reaching Your Goals?

35.7%

35.7%

64.7%

64.7%

27.9%

27.9%

72.1%

72.1%

41.9%

41.9%

58.1%

58.1%

31.8%

31.8%

68.1%

68.1%

Expand Visibility

of Sales

Increase

Sales Revenue

Enhance Company

Credibility

Build the Brand

Most Successful

Least Successful

Maslow’s Hierarchy of

Maslow’s Hierarchy of

Needs

Needs

Self-Actualization

Self-Actualization

Self-Esteem

Self-Esteem

Love-Belonging

Love-Belonging

Safety-Security

Safety-Security

Physiological

Physiological



Intense job challenge, full potential,
full expression, creative expansion.



Achievement, respect, recognition,
responsibility, prestige,
independence, attention,
importance, appreciation.



Belonging, acceptance, love,
affection, family and group
acceptance, friendships.



Security, stability, dependency,
protection, need for structure,
order, law, tenure, pension,
insurance.



Hunger, thirst, reproduction,
shelter, clothing, air, rest.

To perform the exercise, read through the following statements…check those which are most

important in motivating you to do your best work. Select the ten most important statements.

629

Job security

847

Being trusted to do my job the way I think it should be done.

333

Participating in work group conversations.

311

Having adequate shelter to protect from the elements.

836

Having a job which allows me time with my family.

151

Having an opportunity for personal growth.

937

Socializing with my friends.

743

Being considered for an advancement opportunity.

431

Working with other people.

819

Having children.

458

Doing something meaningful with my life.

757

Being in a position to contribute new ideas.

828

Having an associate that looks out for my interests.

735

Including other people in what I do.

949

Being selected for an exclusive award.

234

Being involved with work associates in social and recreational activities.

616

Being sexually satisfied.

146

Having a responsible person tell me when I’ve done a good job.

539

Having an active part in work related social activities.

341

Knowing that other people respect me and my work.

132

Acceptance as a work group member.

An Exercise to Determine Your

An Exercise to Determine Your

Motivational Needs

Motivational Needs

To Determine Results:

To Determine Results:

The statements are divided into five categories intended

to represent the five levels in Maslow’s Hierarchy of

Needs. The second digit in each statement number

indicates the category. These categories are:

1.

Physiological,

2.

Safety-Security,

3.

Love-Belonging,

4.

Self-Esteem,

5.

Self-Actualization.

Count up the number you have in each category then

calculate the percentages for each category. The

categories with the highest percentages would be your

personal motivational drivers.

Your Score

Your Score

Maslow’s Needs & Related

Maslow’s Needs & Related

Sales Force Motivators

Sales Force Motivators

Maslow’s

Maslow’s

Hierarchy

Hierarchy

Of Needs

Of Needs

Motivators

Motivators

SELF-

ACTUALIZATION



Challenging tasks calling for creativity

ESTEEM



Recognition programs

BELONGING



President’s Club $1 million

SAFETY &

SECURITY



Job security and fringes

PHYSIOLOGICAL



Cash wages and bonuses

Safety

Safety

Physiological

Physiological

Affiliation (belonging)

Affiliation (belonging)

Self-actualization

Self-actualization

in service to

in service to

society

society

Chinese Culture

Chinese Culture

Hierarchy of Needs

Hierarchy of Needs

Maslow’s Hierarchy

Maslow’s Hierarchy

U.S. SALESPEOPLE’S RESPONSES

U.S. SALESPEOPLE’S RESPONSES

Number

Number

Percent

Percent

Number

Number

Percent

Percent

847

86%

431

51%

955

80%

654

40%

341

74%

722

39%

352

66%

836

37%

256

63%

458

37%

559

57%

853

37%

757

54%

718

34%

Hygienes

Hygienes



Policies



Tech. Supervision



Salary



Interpersonal Relations



Working Conditions

40 30 20 10 0 10 20 30 40

Low

Low

Satisfaction

Satisfaction

Motivators

Motivators



Achievement



Recognition



Work Itself



Responsibility



Advancement

Comparison of Motivators and Hygiene

Comparison of Motivators and Hygiene

Factors Percentage Frequency

Factors Percentage Frequency

High

High

Satisfaction

Satisfaction

Career Stages

Career Stages



Does everyone go through these
stages?



What can be done to address the
concerns of salespeople at each
stage?

Exploration Stage

Exploration Stage



Motivational Needs

–

Learning the skills required to do the job well.



Manager Role?

Exploration Stage

Exploration Stage



Motivational Needs

–

Learning the skills required to do the job well.



Manager Role?

–

Reinforce accomplishments

–

Spend time with salesperson

–

Discuss long-term benefits of working for the
organization

Establishment Stage

Establishment Stage



Motivational Needs

–

Use skills to produce results, increase job autonomy



Manager Role?

Establishment Stage

Establishment Stage



Motivational Needs

–

Use skills to produce results, increase job autonomy



Manager Role?

–

Provide high rewards for high achievers

–

Have salespeople recognize success has something
other than promotion

Maintenance Stage

Maintenance Stage



Motivational Needs

–

Develop a broader view of work and organization,
maintain a high level of performance



Manager Role?

Maintenance Stage

Maintenance Stage



Motivational Needs

–

Develop a broader view of work and organization,
maintain a high level of performance



Manager Role?

–

Challenge salespeople to use their knowledge in new
ways

–

Introduce significant rewards for mastering new
challenges

Disengagement Stage

Disengagement Stage



Motivational Needs

–

Establish a stronger self-identity outside of work,
maintain performance level



Manager Role?

Disengagement Stage

Disengagement Stage



Motivational Needs

–

Establish a stronger self-identity outside of work,
maintain performance level



Manager Role?

–

Maintain focus on personal goals and importance of
organizational citizenship behaviors (e.g., being a
role model, assist in other aspects of the
organization)

Career Stage Effects on

Career Stage Effects on

Satisfaction

Satisfaction

Select Research Findings:

Select Research Findings:



All stages are least satisfied with
promotion and pay

–

However, pay satisfaction is only dimension on which
disengagement salespeople are more satisfied than
establishment or maintenance salespeople



Maintenance salespeople are less
satisfied with supervision than are
establishment salespeople



Disengagement as well as
maintenance occurs quite early for
some people -- Is this a management
concern?

Age

Age

Range

Range

20 30 40 50 60 65

Overlap of Ages on Career

Overlap of Ages on Career

Stages

Stages

Career

Career

Concerns

Concerns

Proportion

Proportion

of

of

Sales Force

Sales Force

Exploration

14%

Establishment

29%

Maintenance

42%

Disengagement

15%

Giving Status to

Giving Status to

Salespeople

Salespeople

1.

Compensation

- exceed first-line managers

2.

Job Title

- no cost but considerable payback

3.

Company Car Upgrade

- salespeople spend much time in car
reminds them of their value.

4.

Car Phone –

- justified on a purely business basis

Giving Status to

Giving Status to

Salespeople

Salespeople

5.

Field Sales Council

- meet president for 1/2 day open-ended discussion
on field marketing conditions - report back to field
meetings the results

6.

Outside Secretarial Support

- or more exclusive central.

7.

Published Success Stories

- high form of recognition

8.

Task Force Assignments

- e.g., review of all paperwork.

Expectancy Theory

Expectancy Theory

Example

Example

Suppose you had 360 points accumulated in a

particular class and you needed 450 points to get an

“A” for your final grade.

You only have the final left to take (worth 100 points).

Plus, you really didn’t put the effort into studying for

the other exams for this class, but you were in the B to

B+ range.

Also suppose, if you get an “A” for the course, your GPA

hits the 3.5 mark, which now makes you eligible to get

an interview with a prestigious firm.

Expectancy Theory System

Expectancy Theory System

EXPECTANCY

EXPECTANCY
Likelihood increased
effort will lead to
greater performance

INSTRUMENTALITY

INSTRUMENTALITY
Likelihood greater
Performance will lead
to more rewards

VALENCE

VALENCE
Importance of receiving
More of certain rewards

REWARD

REWARD

PERFORMANCE

PERFORMANCE

EFFORT

EFFORT

Expectancy Theory System

Expectancy Theory System



A more complete theory



Focuses on process of motivation



Maslow & Herzberg focus on only one aspect of
the process: reward importance



Systematic approach with multiple reasons for a
lack of greater effort



Indicates where management should direct its
attention to sales force as a whole or to an
individual



What may account for a lack of greater effort in
an individual salesperson?

Role Perceptions

Role Perceptions

SALESPERSON’S ROLE PERCEPTIONS

SALESPERSON’S ROLE PERCEPTIONS

Expectations

Expectations

What do others expect me to do?

What do others expect me to do?

Ambiguity

Ambiguity

How sure am I about what others expect?

How sure am I about what others expect?

Accuracy

Accuracy

Is what I think what they really expect?

Is what I think what they really expect?

Conflict

Conflict

Does meeting expectations of one person mean not

Does meeting expectations of one person mean not

meeting the expectations of another?

meeting the expectations of another?

Company

Company

Sales

Sales

Manager

Manager

Customers

Customers

Family

Family



Sales is a boundary spanning position

- you must be responsive to expectations of multiple people.

Role Perceptions

Role Perceptions



Typical Sales Job Activities



Where is their potential for
the following:

–

Ambiguity

–

Lack of Accuracy

–

Conflict

Typical Sales Job Activities

Typical Sales Job Activities

Job Dimension

Job Dimension

Activities

Activities

Activities

Activities

SELLING FUNCTION

Plan Activities
Develop leads
Prospecting Identify
Decision- Makers

Prepare Presentations
Make Presentations
Overcome Objections
Introduce New Products

WORKING WITH ORDERS

Write orders
Expedite orders
Handle back orders

Find last orders
Handle shipping problems

PRODUCT SERVICING

Learn about product
Test equipment
Supervise installation

Train customers
Supervise repairs
Perform maintenance

MANAGING INFORMATION

Receive feedback
Provide feedback

Provide technical information

SERVICING THE ACCOUNT

Stock shelves
Set up displays

Count inventory
Promote local advertising

ATTENDING CONFERENCES

Sales conferences
Client conferences

Product exhibitions
Training sessions

TRAINING/RECRUITING

Recruit new reps
Travel with trainees

Train new reps

ENTERTAINING

Parties
Drinks

Dinner
Lunch

TRAVELING DISTRIBUTION

Out-of-Town
Sell through
Establish relationships

In-Town
Train
Credit

Self-Management

Self-Management



How do these self-management techniques
relate to the motivation theories -- Maslow,
Expectancy, etc.?



How will career stages affect this process?



Devise a self-management technique for taking
more complete class notes.



Devise a self-management technique for
making more sales presentations for a key
product group- e.g., PCs



What is the role of management in self-
managing?

A Self-Contract

A Self-Contract



Clear detailed description of behavior
targeted
for change.



How behavior is to be observed, measured
and recorded



Detail of criterion for reinforcement



Designates the reinforcement



Stipulates the negative consequences of
not fulfilling contract



Sets timing for delivering reinforcement

Example of a Self-Contract

Example of a Self-Contract

Date:
Goal: Increase the number of accounts by 10% in the coming year

Agreement

Self:

I agree to call on at least three prospective customers each week throughout the year.

In my call report I will note each new contract made. At the end of the week this information
will
be transferred to a chart posted on my office door.

Consequences

If the contract is kept:
After calling on a new customer I will reward myself with a steak dinner and bottle of fine wine.
Each week I call on three or more new customers I will reward myself by playing a round of
golf
on Saturday morning. For every new account I secure I will reward myself by playing an extra
round of golf on Sunday.

If the contract is broken:
If I fail to contact at least three new customers during the week, I will spend Saturday morning
in the office prospecting for new customers.

Bonus clause:
If I exceed the goal of increasing the number of accounts by 10% before the year is out, I will
reward myself with a weekend trip to Las Vegas.

Signed:Witness:

Review Date

Why Use Quotas

Why Use Quotas

1.

Help motivate salespeople.

2.

Direct where to put effort.

3.

Provide standards for evaluation.

1. Sales volume

1. Sales volume

in dollar or point system



Points allow for different weights for different
important products independent of price.



Points not affected by inflation.



Sales quota may be developed for:

–

Total territory sales, and/or

–

Individual product or product group.

Various Types of Quotas

Various Types of Quotas

2. Profit-based

2. Profit-based

quotas are rarely based on

bottom line profits



Difficult to account for indirect expenses



Profits are usually configured as gross margins
minus some load factor

3. Activity-based

3. Activity-based

quotas are based on activities

directly related to sales volume



More directly under control of the salesperson



Biggest problem is falsification of call reports



Issue of quantity vs. quality of activity?

Goal Theory Postulates

Goal Theory Postulates



Difficult goals, if accepted, will lead to
greater performance than moderate or
easy goals



Difficult and specific goals, if accepted,
will lead to even higher performance
than general, “do your best” or no goals.

Goal Theory Additional

Goal Theory Additional

Factors

Factors



Feedback is necessary for goals to be
effective



The goal must be personally embraced



A person who is confident in his/her
ability will outperform someone who is
not confident.

Who am I?

Who am I?

I lost my business

(1831)

Defeated for state legislature.

(1832)

Failed again in business

(1833)

Suffered an emotional breakdown.

(1836)

Lost election for: speaker

elector
congress
vice-president

(1838)
(1840)
(1843 and

1845)

(1856)

Elected President

Elected President

1860

1860

Sales Force Experiment

Sales Force Experiment

Percent of Salespeople at or Over

Percent of Salespeople at or Over

100%

100%

Month

Month

Adjusted

Adjusted

Non Adjusted

Non Adjusted

January

44%

57%

February

28%

45%

March

46%

57%

April

55%

56%

May

54%

57%

June

52%

60%

July

53%

60%

Sales Force Experiment --

Sales Force Experiment --

Conclusions

Conclusions



Most Universal salespeople are “quota
achievers” not “dollar maximizers”.



When given a more easily attainable
quota, motivation declines so much they
will be less likely to make lower than
higher quota.



Set quotas at challenging levels and
attach great significance to attainment



What salespeople say will likely differ
from what they do.

Incentive Program

Incentive Program

Decisions

Decisions



What is difference from regular

compensation such as commission?



Key decisions



Goals

Rules



Timing

Awards



Participants

Publicity



Theme

Cost



What is difference between

Incentive

Incentive

and Recognition

Recognition

programs

Types of Incentive Awards

Types of Incentive Awards

Used by 168 Firms

Used by 168 Firms

Type of Award

Type of Award

Percentage of

Percentage of

Firms Using

Firms Using

Cash

59%

Selected Merchandise

46%

Merchandise Catalog

25%

Travel

22%

Figure 13-7:

Figure 13-7:

Use of the Various Types of

Use of the Various Types of

Quotas

Quotas

60%

60%

55%

55%

32%

32%

14%

14%

14%

14%

28%

28%

Sales Volume

Quota

Profit-based

Quota

Activity Quota

Large firms’ Sales > $40M

Small firms’ Sales < $40M

Develop an incentive program for the following company. The

report of the program should include a statement of the

purpose of the program, its budget, and the specifics of the

program such as theme, prizes, rules, timing and publicity.

ABCO Inc. is located in Dallas, Texas. Its sales last year were

$25,750,000 with pre-tax profits of approximately $400,000.

Growth has been steady over recent years, averaging about 10

percent a year. ABCO manufactures and markets vinyl binders,

loose-leaf products, and index tabs. These products are used

as manuals, price books, and advertisements by their clients.

The bulk of ABCO’s sales are to industrial companies. Some of

their major customers include EDS, 3M, Dr Pepper, and Xerox.

Sales in the first half of the year are usually around 65% of total

sales, while sales in the last quarter are usually about 15-20%

of total annual sales. The margins (net sales minus cost of

goods sold) on these products are approximately 40% on

average. The margins are this high because the products are

custom designed for the customer. Depending on the product

line and customer situation, ABCO’s selling cycle will vary from

two weeks to three months.

Experiential Exercise

Experiential Exercise

The sales force consists of six women and three men. They are

all located in the Dallas/Fort Worth area with exception of one

of the men, who is located in Oklahoma City. They range in age

from 25 to 48 years old. Two of the men and one of the women

have been with the company since its inception 15 years ago.

All of the people are college graduates.

The compensation plan consists of a base salary plus

commission on sales over 90% quota. All salespeople are

expected to make quota. Their average income is $42,000,

though this ranges from a high of $68,000 to a low of $21,000.

Commissions are expected to be approximately 40% of their

income.

ABCO has never had an incentive program in the past having

relied on commissions as an incentive.

Experiential Exercise

Experiential Exercise

NOTE:

NOTE:



The following slides are not
discussed in the instructor’s
note, but can be used to
supplement the ideas
presented in this chapter.

Motivation Tools

Motivation Tools

Self-

Management

Chapter 13

Chapter 13

Quotas

Incentive

programs

Recognition

Programs

What are

What are

the different

the different

theories of

theories of

motivation?

motivation?

Why the

Why the

concern

concern

for sales

for sales

force

force

motivation?

motivation?

Figure 13-5:

Figure 13-5:

Model of Motivation

Model of Motivation

Effort

Effort

Performance

Performance

Rewards

Rewards

Instrumentality

Instrumentality

Likelihood that greater

Likelihood that greater

performance will lead

performance will lead

to more rewards

to more rewards

Expectancy

Expectancy

Likelihood that increased

Likelihood that increased

effort will lead to

effort will lead to

greater performance

greater performance

Valence

Valence

Importance of receiving

Importance of receiving

more of certain rewards

more of certain rewards

Figure 13-6:

Figure 13-6:

Self-Management Techniques

Self-Management Techniques

TECHNIQU

TECHNIQU

E

E

METHOD

METHOD

TOOLS

TOOLS

Self-

monitoring

Observe and record

behavior.

Can use diaries,

counters, tally sheets,

charts.

Goal setting

Establish behavior

change objectives.

Should be specific and

with a short time

horizon.

Stimulus

control

Modify antecedents to

behavior.

May involve introducing

or removing cues.

Consequence

management

Modify antecedents to

behavior.

May involve

reinforcement,

punishment, or

extinction.

Rehearsal

Systematic practice of

desired behavior.

May be overt or

visualized.

Self-

controlling

Specify the

relationship between

behaviors and their

consequences.

May involve public

commitment.

Steps to Greater

Steps to Greater

Motivation

Motivation

1.

Define what you want.

2.

Inform a special person of your goals.

3.

Do something.

4.

Don’t let failure deter you.

5.

Break down problems into pieces.

6.

Set deadlines.

7.

Turn work into play.

8.

Associate with people who motivate you.

Figure 13-4:

Figure 13-4:

Career Stage

Career Stage

Characteristics

Characteristics

Exploration

Exploration

Establishment

Establishment

Maintenance

Maintenance

Disengagement

Disengagement

Career

Career

Concerns

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.

Motivational

Motivational

Needs Job

Needs Job

Related

Related



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
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

Personal

Challenges

Challenges



Establishing a good
initial professional
self-concept.



Producing
superior results
on the job in
order to be
promoted.



Maintaining
motivation,
though possible
rewards have
changed.



Facing concerns
about aging.



Acceptance of
career
accomplishments.

Psychologic

Psychologic

al Needs

al Needs



Support



Peer acceptance



Challenging position



Achievement



Esteem



Autonomy



Competition



Reduce
competiveness



Security



Helping younger
colleagues



Detachment from
the organization
and
organizational
life.

Figure 13-1:

Figure 13-1:

Sales Forced Needs and Ways to Fill

Sales Forced Needs and Ways to Fill

Them

Them

Sales Force

Sales Force

Needs

Needs

Company Action to Fill Needs

Company Action to Fill Needs

Status



Change title from “salesperson” to “area

manager.” Buy salespeople more luxurious

cars to drive.

Control



Allow salespeople to help plan sales quotas

and sequences of calls.

Respect



Invite salespeople to gatherings of top

executives. Put pictures of top salespeople in

company ads and newsletters.

Routine



Assign each salesperson a core of loyal

customers that are called on regularly.

Accomplishm

ent

Stimulation



Run short-term sales contests. Schedule

sales meetings in exotic locations.

Honesty



Deliver promptly all rewards and benefits

promised.

Figure 13-2:

Figure 13-2:

Summary of Classic Motivation

Summary of Classic Motivation

Theories

Theories

THEORY

THEORY

AUTHOR

AUTHOR

DESCRIPTION

DESCRIPTION

Hierarch of
needs

Abraham
Maslow



Physiological, safety, belonging, esteem, and self
actualization needs are ranked in a hierarchy from lowest
to highest. An individual moves up the hierarchy as a
need is substantially realized.

ERG theory

Clayton P.
Alderfer



Hierarchically classifies needs as existence, relatedness,
and growth needs. Like Maslow, suggests that people will
focus on higher needs as lower needs are satisfied but,
unlike Maslow, suggests that people will focus on lower
needs if their higher needs are not satisfied.

Motivation-
hygiene

Frederick
Herzberg



Argues that intrinsic job factors (e.g., challenging work,
achievement) motivate, whereas extrinsic factors (e.g.,
pay) only placate employees.

Theory of
learned needs

David
McClelland



Proposes that there are three major professional needs:
achievement, affiliation, and power. A high need for
achievement and affiliation has been related to higher
sales force performance. A high need for power has been
related to higher sales manager performance.

Equity theory

J. Stacy Adams



Proposes that people will evaluate their treatment in
comparison to that of “relevant others” and that
motivation will suffer if treatment is perceived to be
inequitable.

What Makes Great

What Makes Great

Salespeople?

Salespeople?

CHARACTERISTI

CHARACTERISTI

C

C

DESCRIPTION

DESCRIPTION

The Competitor



This person not only wants to win, but derives

satisfaction from beating specific rivals -- another

company or even colleagues. They tend to

verbalize what they are going to do, and then do

it.

The Ego-Driven



They are not interested in beating specific

opponents, they just want to win. They like to be

considered experts, but are prone to feeling

slighted, change jobs frequently, and often take

things too personally.

The Achiever



This type of person is almost completely self-

motivated. They usually set high goals and as

soon as they hit one goal, they move the bar

higher. They like accomplishment, regardless of

who receives the credit.

The Service-

Oriented



Their strengths lie in building and cultivating

relationships. Winning is not everything to this

person, but they do respond to feelings of

gratitude and friendship from other people.