Compensation -- exceed first-line managers 2. Job Title -- no cost but considerable payback

Giving Status to 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 5. Field Sales Council -- meet president for 12 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. A Model: Expectancy Theory System Effort Performance Reward Expectancy Instrumentality Valence Likelihood Likelihood Importance increased greater of receiving effort performance more of will lead to will lead to certain greater more rewards performance rewards Expectancy Theory • 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 • Sales is a boundary spanning position -- you must be responsive to expectations of multiple people. Company Sales Manager Customers Family Salesperson’s Role Perceptions • Expectations: What do others expect me to do? • Ambiguity: How sure am I about what others expect? • Accuracy: Is what I think what they really expect? • Conflict: Does meeting expectations of one person mean not meeting the expectations of another? Role Perceptions • Typical Sales Job Activities 13-15 • Where is their potential for the following: – Ambiguity – Lack of Accuracy – Conflict Behavioral Self-Management BSM T13-16 • How do these BSM techniques relate to the motivation theories -- Maslow, Expectancy, etc.? • How will career stages affect this process? • Devise a BSM for taking more complete class notes. • Devise a BSM for making more sales presentations for a key product group- e.g., PCs • What is the role of management in BSM?? A Self-Contract 13-17 • Clear detailed description of behavior targeted for change. • How behavior is to be observed, measured recorded • Detail of criterion for reinforcement • Designates the reinforcement • Stipulates the negative consequences of not fulfilling contract • Sets timing for delivering reinforcement Role Play 13-1 1. What should be taken into account by top management when setting sales goals for next year? 2. Under what circumstances might a 20 sales quota increase be justified? 3. What is the role of first-line, field sales managers in setting quotas? Role Play 13-1 4. How should a district manager allocate the district’s quota to individual salespeople; that is, what factors should be taken into consideration? 5. How should the two salespeople’s requests be handled? 6. What problems may exist with this company’s process of setting quotas? Expectancy Theory • 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? Determining Your Motivational Needs Second Number to left of statement indicates the category; how many in each: Number Category 1 Physiological 2 Safety - Security 3 Love - Belonging 4 Self Esteem 5 Self Actualization Figure 13-1: Sales Forced Needs and Ways to Fill Them Sales Force Needs Company Actions 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. Accomplishment Set reasonable goals for the number of calls and sales. Stimulation Run short-term sales contests. Schedule sales meetings in exotic locations. Honesty Deliver promptly all rewards and benefits promised. Figure 13-2: Summary of Classic Motivation Theories 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 David McClelland Proposes that there are three major needs professional needs: achievement, afflil- iation, 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. 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. Herzberg’s Hygiene-Motivation Theory • Based on in-depth analysis of engineers Transparency 13-7 • Do these results generalize to salespeople? In-Class Exercise 13-1 1. What should be taken into account by top management when setting sales goals for next year? 2. Under what circumstances might a 20 sales quota increase be justified? 3. What is the role of first-line, field sales managers in setting quotas? In-Class Exercise 13-1 4. How should a district manager allocate the district’s quota to individual salespeople; that is, what factors should be taken into consideration? 5. How should the two salespeople’s requests be handled? 6. What problems may exist with this company’s process of setting quotas? Why the concern for sales force motivation? Why the concern for sales force motivation? What are the different theories of motivation? What are the different theories of motivation? Motivation Tools Self- Quotas Incentive Recognition management programs programs Motivation Tools Self- Quotas Incentive Recognition management programs programs Quotas Reasons for Use 1. Help motivate salespeople 2. Direct where to put effort 3. Provide standards for evaluation.

1. Sales volume