What is Motivation ?What is Motivation ?• Motivation is some driving force within

individuals by which they attempt to achieve some goal in order to fulfill some need or expectation.

What is Sales Force Motivation?What is Sales Force Motivation?Motivation is the effort salespeople want to make to complete various aspects of their jobs.

In term of sales force:In term of sales force:• Motivation is the inner feeling to work better to achieve

best result• Motivation is the effort the salesperson makes to

complete various activities of the sales job• It is desire to do better than the best. Performance = Ability x Motivation

Types of MotivationTypes of Motivation• Extrinsic motivation ( related to tangible rewards such

as money )• Intrinsic motivation ( related to psychological rewards

such as the sense of challenge and achievement).

Process of Motivation Process of Motivation MOTIVE

BEHAVIOUR

GOALGOAL

TENSION TENSION REDUCTIREDUCTI

ONON

MOTIVATIONAL MOTIVATIONAL FRAMEWORKFRAMEWORK

THE EMPLO

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1. Identifies needs

2. Search for ways to

satisfy needs

3. Goal directed

behaviours4.

Performance

6. Reassesses

need deficiencies

5. Rewards or

Punishments

MOTIVATIONAL THEORIESMOTIVATIONAL THEORIES• Motivational theories or behavioural concepts that

are relevant to motivation of sales force are :-

• Maslow’s hierarchy of needs • Hertzberg’s dual-factor • Vroom’s expectancy • Goal Setting Theory

• Motivation Effort Performance Reward Satisfaction

SELECTING A MIX OF SELECTING A MIX OF MOTIVATIONAL TOOLSMOTIVATIONAL TOOLS

• Sales manager should know each salesperson and understand his / her specific needs.

• For designing or selecting a mix of motivational tools, a compromise between differing needs of customers, salespeople, and the company management becomes necessary.

• Motivational tools are divided into (1) financial, (2) non-financial

FINANCIAL REWARDSFINANCIAL REWARDS• Basic Compensation plan• Salary• Commissions• Bonus payments • Sales Contests• Merchandise & travel • Through Cyberspace Incentives

NON FINANCIAL REWARDSNON FINANCIAL REWARDS• Recognition awards; such as trophies, Certificates• Promotions• Praise and encouragement from management• Job enrichment• Job security• Sales meetings and conventions • Sales training programme• Personal growth opportunities

• Financial compensation is the most widely used tool of motivation, as salespeople give highest value to it

Factors Influencing The Factors Influencing The Motivation Of The Sales PersonMotivation Of The Sales Person

EXPLORATION ESTABLISHMENT MAINTINENCE DISENGAGEMENT

20 30 40 50 60Age

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1. Exploration: This is the stage where the new recruits are in the stage of exploration & are unsure about whether selling is the career that best suits them.

2. Establishment: In this stage the sales person have settled in an occupation & wish to develop that occupation into a successful career.

3. Maintenance: In this stage salesperson concern is retaining the present position, status & performance level with in the sales force.

4. Disengagement: At last stage the salespeople prepare for retirement & loss self identity may separation from one’s sales job.

The Need for Sales The Need for Sales TerritoriesTerritories

• A sales territory is a grouping of customers and prospects assigned to an individual salesperson .

• A sales territory is the customer group or geographical area for which an individual salesperson or a sales team holds responsibility. Territories can be defined on the basis of geography, sales potential, history, or a combination of factors. Companies strive to balance their territories because this can reduce costs and increase sales.

Reasons for Establishment Reasons for Establishment of Sales Territoriesof Sales Territories

• To obtain thorough coverage of the market.• To establish a salesperson’s responsibility.• To evaluate performance.• To improve customer relations.• To reduce sales expense.• To allow better matching of salesperson to

customer.• To benefit salespeople and the company.

Designing Sales Designing Sales TerritoriesTerritories

• This includes the following steps:-

Step 1 – Baseline Current Performance: Analyse the performance of each existing territory including prior revenue performance, product/service revenue mix, customer counts, prospect counts, current pipeline opportunities, sales rep talent, etc.  The output is a baseline of current territory performance.

Step 2 – Analyze Existing Customer Spend: Use historical customer spend to determine the correlation between customer firmographic information (revenue, number of employees, number of locations, etc.) and the spend level for each product/service offering.  The output is a frontier assessment that predicts spend potential for each customer/prospect “segment”.

Step 3 – Determine Market Potential: Compile the universe of customers and prospects, and then overlay the frontier assessment from Step 2.  The output is the spend potential for each prospect/customer which can be aggregated to identify the total market potential.

Step 4 – Produce Initial Territories: Map the accounts by segment driver to optimize results based on either the Focused Account Consolidation (Customer driven), Workload Levelling (Activity driven), or Territory Compression (Cost driven) approach.  The output is an initial draft of territories including an aligned assignment of reps - the "best" reps are assigned the "best" territories.

Step 5 – Re-Balance Territory Assignments: Based on territory assignments balance territories by number of existing customers, number of prospects, total market potential, workload, number of existing opportunities, rep potential, etc.  Consider the positive/negative implications of account re-assignments and penetration goals to determine the optimal balancing.  The output is a final set of territory assignments.

Step 6 – Create Territory Plans: Create territory plans including the prioritization of accounts and territory specific goals for revenue, account acquisition, share of wallet, penetration levels, etc.  Be realistic when setting goals for each territory considering workload constraints and the “warmth” of each territory.  The output is a territory plan per territory that will govern the activities within the territory.

Advantages of Designing Advantages of Designing Territories and Allocating Sales Territories and Allocating Sales Efforts;Efforts;1.By appointing a salesman or a group of salesmen for a particular territory, the company is able to serve his customers more satisfactorily.2. Comparison among salesmen is possible and can be easily made. This is so because there is equitable distribution of territories among equally competent salesmen.3. By allocating sales territories, the entire sales field of a particular organisation can be covered quickly.4. Assignment of a particular territory to a particular salesman makes the sales force to work hard, as the man working in a particular territory has fixed selling targets before him.5. By assigning pre-determined sales territories, the sales manager instils the element of competition among the sales force. Competition among salesmen definitely results in more sales.

6. The inefficient salesmen are easily found out by the sales organisation.7. The organisation is able to know sales potentialities of each area. Therefore comparison among sales areas is possible.8. The allocation of sales territories restricts the area of operation of the salesman to given geographical area. This helps to develop friendly relationship between the salesman and the customers. This helps the salesmen to increase their sales volume.9. Market survey can be easily and quickly done when a company has its sales territories properly divided among its salesmen.10. Allocation of sales territories ensures adequate market coverage and avoids duplication of sales efforts.