MOTIVATING THE SALES FORCE

PRESENTED BY: NAVEEN DHANAWAT

NISHANT

RISHIKA SAHU

PRATIBHA

PRIYANSHU

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

Motivating the Sales ForceUnderstanding 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)

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

Motivational theories addressing the issue:“what” motivates salespeople

Esteem needs

Belongingness needs

Security needs

Physiological needs

Self-actualisationneeds

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).

MASLOW'S HIERARCHY OF NEEDS

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”.

HYGIENE FACTORS

Pay and Benefits

Company Policy and Administration

Relationships with co-workers

Physical Environment

Supervision

Status

Salary

Job Security

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?)

Motivational theories addressing the issue:“how do salespeople choose their actions?”

VROOM'S EXPECTANCY THEORY

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.

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)

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

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

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.