• Motivating Salespeople

• Motivating Salespeople

Some salespeople will do their best without any special urging from management. To them, selling may be the most fascinating job in the world. But selling can also

be frustrating. Salespeople usually work alone, and they must sometimes travel away from home. They may face aggressive, competing salespeople and difficult customers. They sometimes lack the authority to do what is needed to win a sale and may thus lose large orders that they have worked hard to obtain. Therefore, salespeople often need special encouragement to do their best. Management can boost sales force morale and performance through its organizational climate, sales quota and positive incentives.

ORGANIZATIONAL CLIMATE. Organizational climate reflects the feeling that salespeople have about their opportunities, value and rewards for a good

performance within the company. Some companies treat salespeople as if they are not very important. Other companies treat their salespeople as their prime movers and allow virtually unlimited opportunity for income and promotion. Not surprisingly, a company's attitude towards its salespeople affects their behaviour, if they are held in low esteem, there is high turnover and poor performance. If they are held in high esteem, there is less turnover and higher performance.

Treatment from the salesperson's immediate superior is especially important,

A good sales manager keeps close to his or her sales force. They are in touch with

Managing the Sales Force • 861

salespeople through letters and phone calls, visits in the field and evaluation sessions in the home office. At different times, the sales manager acts as the sales­ person's boss, companion, coach and confessor. Most importantly, sales manage­ ment must be able to convince salespeople that they can sell more by working harder and being trained to work smarter, and that the rewards ­ be they financial in nature or higher­order rewards for better performance, such as liking, peer recognition and respect, and a sense of accomplishment ­ are worth the extra effort.

SALES QUOTAS. Many companies set sales quotas for their salespeople. Sales sales quotas quotas are standards stating the amount they should sell and how sales should be

Standards set/or divided among the company's products. Compensation is often related to how well

salespeople, stating die salespeople meet their quotas.

amount they should sell Sales quotas are set at the time that the annual marketing plan is developed.

and how ,safc,s should be The company first decides on a sales forecast that is reasonably achievable. Based

divided among the on this forecast, management plans production, workforce size and financial company's products.

needs. It then sets sales quotas for its regions and territories. Generally, sales quotas are set higher than the sales forecast to encourage sales managers and salespeople to give their best effort. If they fail to make their quotas, the company may still make its sales forecast.

POSITIVE INCENTIVES. Companies also use several incentives to increase sales force effort. Sales meetings provide social occasions, breaks from routine, chances to meet and talk with 'company brass', and opportunities to air feelings and to identify with a larger group. Companies also sponsor sales contests to spur

the sales force to make a selling effort above what would normally be expected. Other incentives include honours, merchandise and cash awards, trips and pro fit­ sharing plans.