1. Sales Force Management
11th Edition
Mark W. Johnston
Greg W. Marshall
Routledge 2013

2. Implementation of the Sales Program
Part 2
Implementation of the Sales Program
Routledge 2013

3. Salesperson Performance: Motivating the Sales Force
Chapter 7
Salesperson Performance: Motivating the Sales Force
Routledge 2013

4. Salesperson Motivators
Novel and non-routine situations
Seeing meeting people as opportunities
Participative style
Depth of required expertise
Avoid or minimize confrontation
Sharing expertise
Routledge 2013

5. Learning Objectives Understand motivation process
Discuss effect of personal characteristics on salesperson motivation
Understand how individual’s career stage influences motivation
Discuss effect of environmental factors on motivation
Discuss effect of factors inside company on motivation
Routledge 2013

6. The Psychological Process of Motivation
Motivation is an individual’s choice to:
Initiate action on a task
Expend a certain amount of effort on that task
Persist in expending effort over time
Expectancy Theory
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7. The Psychological Determinants of Motivation
Exhibit 7.1
The Psychological Determinants of Motivation
Routledge 2013

8. Major Components of Motivation
Expectancies – perceived linkages between more effort and improved performance
Instrumentalities – perceived relationship between improved performance and increased rewards
Valence for rewards – perceived intrinsic value of the rewards
Routledge 2013

9. Expectancies
Salesperson’s perceived link between job effort and performance
Estimated probability that increased effort leads to improved performance
Accuracy of expectancy estimates how clearly salesperson understands relationship between effort and achievement
Magnitude of expectancies – perception of ability to control required performance
Routledge 2013

10. Exhibit 7.2
Important Questions and Management Implications of Salespeople’s Expectancy Estimates
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11. Instrumentalities Link job performance and available rewards
Estimate of likelihood an improvement in performance will lead to a specific reward
Accuracy of Instrumentalities – perceptual clarity of understanding relationship between improvement, achievement and available rewards
Magnitude of instrumentality – the perceptual understanding that the salesperson can control or influence his or her own job performance
Routledge 2013

12. Factors Influencing the Motivation Process
Exhibit 7.3:
Factors Influencing the Motivation Process
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13. Exhibit 7.4
Important Questions and Management Implications of Salespeople’s Instrumentality Estimation
Routledge 2013

14. Exhibit 7.4
Important Questions and Management Implications of Salespeople’s Instrumentality Estimation
Routledge 2013

15. Valences for Rewards
Perceptions of desirability of receiving increased rewards through improved performance
Other rewards may equal or exceed the value of increased financial compensation
The kinds of rewards deemed most effective for motivation varies per individual
Satisfaction with current rewards depends upon perceived value
Routledge 2013

16. Technology: New Technology is a Great Motivator
Money is a primary motivator, but not the only or necessarily the most effective one
Research suggests that technology is one of the most effective motivators
Specifically the iPad
Effective for consumers and employees
Sales professionals indicate that new technologies like the iPad generate more interest and raise awareness of the sales programs
New technology is highly effective with younger sales people who are less motivated by money than older colleagues
Routledge 2013

17. Can the Motivation Model Predict Effort and Performance?
Research supports the validity of expectancy models of motivation like the models depicted in Exhibits 7.1 and 7.3
Sales Managers need to know how determinants of motivation are affected by:
Differences in personal characteristics
Environmental conditions
The organization’s policies and procedures
Routledge 2013

18. The Impact of a Salesperson’s Personal Characteristics on Motivation
Satisfaction with current rewards
Demographic variables
Job experience
Psychological variables
Personality traits
Attribution of meaning to performance
Routledge 2013

19. Satisfaction
Workers dissatisfied with rewards value lower-order rewards
High-order rewards valued more highly after lower-order needs have been satisfied
Salespeople satisfied with their current income (a lower-order reward) assign lower valences to earning more pay
Routledge 2013

20. Demographic Characteristics
Older, more experienced salespeople obtain higher levels of low-order rewards
Satisfaction with current level of lower- order rewards influenced by responsibilities to be satisfied
More formal education increases desire for higher-order rewards
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21. Job Experience More experience provides
Clearer idea of how effort affects performance
Understanding of how superiors evaluate performance
Understanding of how certain performance leads to rewards
Magnitude of expectancy perceptions relates to experience
Routledge 2013

22. Psychological Traits Affect motivation Traits High achievement need
Internal locus of control
Verbal intelligence
General self-esteem
Task-specific self-esteem
Routledge 2013

23. Influence of Demographic Characteristics on Valence for Rewards
Exhibit 7.5
Influence of Demographic Characteristics on Valence for Rewards
Routledge 2013

24. Exhibit 7.6
The influence of Psychological Traits on the Determinants of Motivation
Routledge 2013

25. Performance Attributions
Stable Internal Factors that are unlikely to change much in the near future, such as personal skills and abilities
Unstable Internal Factors that may vary from time to time, such as the amount of effort expended or mood at the time
Stable External Factors such as the nature of the task or the competitive situation in a particular territory
Unstable External Factors that might change next time, such as assistance from an unusually aggressive advertising campaign or good luck
Routledge 2013

26. Exhibit 7.7
The Influence of Performance Attributes on the Magnitude of a Salesperson’s Expectancy Estimates
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27. Management Implications
Relationships between personal characteristics and motivation have two broad implications for managers:
Suggest people with certain characteristics are likely to understand their jobs and companies’ policies well
Some characteristics are related to kinds of rewards salespeople are likely to value
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28. Career Stages and Motivation
Exploration
Lack of assurance
Establishment
Selection of selling as an occupation and desire for career success
Maintenance
Seeking to retain present position, high status, and achievement
Disengagement
Preparation for retirement and possible loss of self-identity
Routledge 2013

29. Leadership: How to Lead a Pack of Alpha Dogs
Suggestions for managers of alpha dogs:
Look for ways to have authentic, one-on-one conversations with employees. Generally, alphas are more likely to listen when they know their voices are being heard as well.
Remember that it’s about serving the company and its people. Don’t make customers pay for a misguided attempt at making things easier for the manager. Look for efficiencies to free up to add value to the role.
Be an A player. Talented alpha employees pride themselves on being passionate and innovative. Make sure to bring passion to the table; look for areas to explore and add a level of personal challenge to the job in the manner expected from employees
Routledge 2013

30. Exhibit 7.8
Sales Career Path
Routledge 2013

31. Problems of the Plateaued Salesperson
Early disengagement
Causes
Lack of a clear career path
Boredom
Failure to manage the person effectively
Solutions
Clearly defined career path
Promotions within sales force
Job environment
Routledge 2013

32. Motivating Plateaued Salespeople
Require them to account for their time
Total compensation management
Get them out in the field
Positive environment
Balance the need for information with the burden of generating it
Hire the right people
Spend the resources to achieve training objectives
Ensure they have a purpose
Routledge 2013

33. Solutions for the Plateaued Salesperson
Talk with salesperson about problem
Discuss reasons and possible solutions
Conduct motivations sessions
Manage, lead and communicate
Cut salesperson’s responsibilities
Assign to a new territory
Inform rep on his/her responsibilities
Provide time off
Routledge 2013

34. Innovation: Money Isn’t Everything
Research shows organizations that have reward systems in place outperform organizations that do not have a rewards system
McKinsey reports suggest businesses have cut back on both financial and non-financial incentives
Companies are working to understand what motivates employees beyond financial compensation
Many companies have emphasized recognition than reward.
Routledge 2013

35. The Impact of Environmental Conditions on Motivation
Territory potential and strength of competition impact performance, perceptions, and motivation
Understanding how and why salespeople perform differently under varying environmental circumstances guides compensation and management policies
Routledge 2013

36. Exhibit 7.10
Influence of Organizational Variables on the Determinants of Motivation
Routledge 2013

37. Supervisory Variables and Leadership
Closeness of supervision
Most occupations prefer relatively free from supervision
B-2-B salespeople prefer close supervision
Span of control – increased span of control results in decreased supervision
Frequency of communication – increased communication means decreased role ambiguity
Routledge 2013

38. Incentive and Compensation Policies
Policies concerning higher-order rewards can influence desirability of such rewards
Preferential treatment for “stars” may reduce morale
The range of financial rewards may influence valences of additional financial rewards
Earnings opportunity ratio
Total financial compensation of the highest paid salesperson compared to that of the average in a sales force
Higher Ratio = Higher Valence
Routledge 2013

39. Routledge 2013