Motivation and Reward System Management Module Eight

Motivation The force within us that activates our behavior. It is a function of three distinct components, Intensity, Direction, and Persistence. MotivationMotivation

Motivation - Intensity Intensity refers to the amount of mental and physical effort put forth by the salesperson. MotivationMotivation

Motivation - Direction The extent to which an individual determines and chooses efforts focused on a particular goal. MotivationMotivation

Motivation - Persistence The extent to which the goal-directed effort is put forth over time. MotivationMotivation

Motivation Motivation: Intrinsic vs. Extrinsic When rewards such as pay and formal recognition act as motivators When doing the job is inherently motivating

Noncompensation rewards: __________________________________________ __________________________________________ Two Basic Categories of Rewards Compensation rewards: __________________________________________ __________________________________________

Optimal Sales Force Reward System 1.Provides an _______________ of costs and sales force output in volume, profit, or other objectives 2.Encourages _______________ consistent with the firm's overall, marketing, and sales force objectives and strategies 3.Attracts and retains ____________________, thereby enhancing _____________ customer relationships 4.Allows the kind of adjustments that facilitate administration of the reward system.

Types of Sales Force Rewards Motivation Pay Promotion Sense of Accomplishment Personal Growth Opportunities Recognition Job security

Financial Compensation: Straight Salary Advantages -Salaries are ___________________ -Planned earnings are ________________. -Salaries can provide _________ over salespeople’s activities, and reassignments are less of a problem. -Salaries are useful when __________________ work is required. Disadvantages -Salaries offer ____________ for better performance. -Salary compression could cause perceptions of _____________ among experiences salespeople. -Salaries represent _____________________.

Financial Compensation: Straight Commission Advantages -_________ is linked directly to _______________. -Straight commission plans offer _______________. Disadvantages -Straight commission plans contribute little to __________________. -Problems may also arise if commissions are not limited by an earnings cap.

Straight Commission: Plan Variations 1.Commission base — ________________________ 2.Commission rate — ________________________ 3.Commission splits — ________________________ _________________________________________ _________________________________________ 4.Commission payout event — when the order is confirmed, shipped, billed, paid for, or some combination of these events

Straight Commission: Rates Constant rates: –Rates that _______________________ over the pay period. Pay is_________________________. Progressive rates: –Rates that _____________ as salespeople reach ______________________. Regressive rates: –Rates that _______________ at some predetermined point.

Financial Compensation: Performance Bonuses Advantages -Organization can _________________ to what it considers important in the sales area. -________________ are particularly useful for tying ___________ to _______________ of objectives. Disadvantages -It may be ______________________ a formula for calculating bonus achievement if the objective is expressed in subjective terms. -If salespeople do not fully _____________ the established objective, they may not exert additional _____________ to accomplish the goal.

Financial Compensation: Combination Plans Advantages -Combination pay plans are ____________. -They are also _____________ when the skill levels of the salesforce ___________. -Combination pay plans are attractive to __________ __________ but unproven candidates for sales jobs. Disadvantages -Combination pay plans are more __________ and _________ to administer. -A common ___________ of combination pay plans is that they tend to produce __________ salesforce objectives.

Nonfinancial Compensation Opportunity for Promotion: –_____________________________________ _____________________________________ Sense of Accomplishment: –The ________________ sense of satisfaction from successful performance –Sales managers should ______________ salespeople’s ability to feel this a sense of ____________________

Nonfinancial Compensation Opportunity for Personal Growth: –Access to programs that allow for personal development (e.g., tuition reimbursement, leadership development seminars) Recognition: –The ___________ or ____________ acknowledgement of a desired accomplishment Job Security: –A sense of being a ___________ employee that comes from ____________________________

Sales Expenses 1.A _______ of which expenses are ___________ 2.The establishment of expense budgets 3.The use of __________ for certain expenditures 4.Documentation of expenses to be reimbursed Controls used in the sales expense reimbursement process include:

Additional Issues in Managing Salesforce Reward Systems __________________________________________

Sales Contests: Recommended Guidelines 1.Minimize potential motivation and morale problems by allowing __________. Salespeople should compete against individual goals and be declared winners if those goals are met. 2.Recognize that contests will _________________ in specific areas, often at the temporary neglect of other areas. Plan accordingly.

Sales Contests: Recommended Guidelines 3.Consider the positive effects of including ____________ personnel in sales contests. 4.Use variety as a basic element of sales contests. Vary timing, duration, themes, and rewards. 5.Ensure that sales contest objectives are ________, _______________, and ______________ to allow performance assessment.

Guidelines for Motivating and Rewarding Salespeople 1.Recruit and select salespeople whose personal motives ___________ the requirements and rewards of the job. 2.Attempt to incorporate the individual needs of salespeople into motivational programs. 3.Use job _________ and __________ as motivational tools

Guidelines for Motivating and Rewarding Salespeople 4.Provide adequate ____________ and assure proper ________________ for the sales force. 5.Concentrate on building the _____________ of salespeople. 6.Take a __________ approach to seeking out motivational problems and sources of frustration in the salesforce.