Chapter 14.
Motivating Salespeople

• Building Relationships Japanese Approaches to Selling

  Japanese sales reps have a unique way of selling Foundation is respect for the customer Behave like they're at the bottom of the social ladder Rely on support materials and data "Wet" selling implies approaches that are flexible accommodating caring human Service is an integral part of selling Some U.S. sales forces are considering the Japanese approach

---

• Introduction

  Motivating is important and frustrating Field sales managers often have little formal training in motivation techniques

  Basic Motivation Guidelines

  Must also provide the circumstances that encourage salespeople to motivate themselves Successful selling comes from two factors Motivation. Selling skills. Products do not sell themselves - people sell them "Pygmalion Effect": If managers believe in and encourage salespeople the performance usually improves Motivation is an ongoing process High levels of sales come when both company and the salespeople are successful

  Why the need to motivate?

  Motivation makes an important contribution to an effective sales call Salespeople get rejected, frustrated Internal support may sometimes disappoint salespeople Some salespeople spend much time alone or on the road Morale

  Salesmanager's Twofold Task

  Keep morale up in the face of adversity Help salespeople motivate themselves to perform at potential

  Morale and motivation are interrelated.

---

• Definition of Motivation
  Usually three dimensions
  Intensity	The amount of effort salespeople put out
  Persistence	The choice to expend energy over time
  Direction	Which activities a salesperson spend time doing
  Whatever happened to that persistent salesperson that was following you?

---

• Theories of motivation
  Hierarchy-of-needs theory
  Motivation-hygiene theory
  Determiners of job satisfaction	achievement recognition work itself responsibility advancement
  Determiners of dissatisfaction	company policies administrative policies supervision salary interpersonal relations working conditions
  Learned-needs theory
  Need for Achievement Drive to excel Drive to achieve in relation to a set of standards To strive to succeed	Personal responsibility Feedback Moderate risk
  Need For Power The need to make others behave in a way that they would not have behaved otherwise	Influence Competitive
  Need for Affiliation The desire for friendly and close interpersonal relationships	Acceptance and Friendship Cooperative
  Expectancy theory
  An individual will act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual	Effort	Performance linkage (How hard will I have to work?)
  	Performance	Reward linkage (What is the reward?)
  	Valence	(How attractive is the reward?)
  According to expectancy theory, a person will expend effort (be motivated) when s/he believes that: the effort will result in favorable performance favorable performance will result in a desirable reward the reward will satisfy an important need the desire to satisfy that need is strong enough to make the effort worthwhile Expressed another way, a person might ask: What's in it for me? How hard will I have to work to get what's in it for me? What are my real chances of getting that reward if I do what you (or they) want?
  Equity theory
  People value equity Perception counts An employee compares her/his job's inputs-outcomes ratio with that of referents. If the inequity is perceived then the person will act to correct the inequity: Change outcomes Alter perceptions of self Alter perceptions of other Leave situation Change comparisons
  Attribution theory
  Attributions	Causes salespeople generate to make sense of their world.	ability luck effort strategy difficulty
  Consistency	Degree to which the salesperson repeats that same behavior toward a problem on different occasions.
  Distinctiveness	Degree to which the salesperson performs different behaviors with different problems.
  Consensus	the degree to which other salespeople perform the same behavior with the same problem.
  Most salespeople attribute failure to not working hard enough Sales manager must change the behavior to working smarter
  Change
  Salespeople will not change unless they want to change They like themselves the way they are They must see a need to change PLOM disease
  Sales force segmentation
  segment the salesforce into homogeneous segments develop different motivation programs Example: Segment by career path management path individual path
  Career plateauing
  Reasons for Plateau   Cause Symptoms 1 No Career Path Doesn't prospect hard enough 2 Not managed adequately Doesn't follow through 3 Bored Works fewer hours 4 Burned Out Resists management 5 Economic needs met Lives in good old days 6 Discouraged with company Doesn't keep up w products 7 Overlooked for promotion Usually late / poor paperwork 8 Lack of ability gets complaints 9 Afraid of management job Manipulates commissions 10 Reluctance to be transferred Absenteeism

---

• Applied motivation
  Salespeople are motivated by
  Personal Individual Elements	needs interests abilities attitudes
  Job Elements	Authority to make decisions Level of responsibility
  Organizational Elements	Opportunities for advancement Supervisory practices Peer relations
  The Individual Salesperson
  Respond to individual needs or segment into groups with similar needs and respond Praise and recognition Once financial security is achieved appeal to other needs To obtain performance Explain requirements and expectations in writing Train to be professional Provide incentives Rewards should be Simple - not complicated Immediate - not delayed Frequent - not haphazard or random Related to the specific task - not broad Understand motivational value of Personal visits Personal phone calls Personal letters Small, intimate sales meetings
  The Sales Job
  Provide sufficient product information to sell the salesperson Communicate professional status Train and retrain Help individuals set goals design a plan to hit goals provide constructive reviews What salespeople like about a job Challenge Authority Freedom Recognize adversity and keep motivating Prevent dissatisfaction by Fair compensation helpful supervision Fringe benefits Job security
  The Organizational Environment
  Managers must take an active role in motivation Welcome and solicit suggestions from salespeople Create an environment Open Constructive Relaxed Trusting Fair Communicate formally and informally to salespeople professional status importance of their work The relationship between performance and recognition Recognize superior performance frequently and positively

---

• Nonmonetary motivation
  Unsuccessful Salespeople Lack	positive attitude personal goals time organization enthusiasm
  Recognition
  Recognize everyone	Not just the stars Don't forget the staff
  Recognize Publicly	Say it in front of everyone Let co-workers and family know
  Record Recognition's	Photographs Trophies Newspaper College High School
  Involve Top Management	As high as you can go
  Make it Personal	Not part of a group Let each individual stand alone
  Don’t Use Negative Recognition	Booby Prize Termination
  Put the Winner in the Center	Use showmanship Use drama
  Awards
  Distinctive Group membership Association recognition
  Special communications
  Newsletters Web site
  Other nonmonetary motivators
  Extra days at a convention Special audience with top management Special Assignments Teaching or Training responsibilities

---

• See Special Report

---