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Chapter 10 Motivating the Sales Force. Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras. Chapter 10 Motivating the Sales Force. Learning Objectives Define motivation; Understand the complexity of motivation;

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chapter 10 motivating the sales force

Chapter 10Motivating the Sales Force

Sales Management:

A Global Perspective

Earl D. Honeycutt

John B. Ford

Antonis Simintiras

slide2

Chapter 10

Motivating the Sales Force

Learning Objectives

Define motivation;

Understand the complexity of motivation;

Explain the main theories of motivation;

Understand the impact of cultural differences on motivation;

Explain various tools available for motivating the global sales

force; and

Discuss the relationship between motivation and job satisfaction.

slide3

Chapter 10: Motivating the Sales Force

What is motivation?

Motivation is the inner force that guides behavior and is

concerned with the causation of specific actions.

Motivation is a three-dimensional construct consisting of the

following:

Intensity or the magnitude of mental activity and physical

effort expended towards a certain action;

Persistence or the extension of the mental activity and

physical effort over time; and

Direction or the choice of specific actions in specific

circumstances.

slide4

Chapter 10: Motivating the Sales Force

Understanding motivation

Motivation should be understood at two levels:

What motivates salespeopleHow salespeople choose their action

(the reasons behind the intensity (the direction or decision to engage in

and persistence of mental and specific actions in specific

physical effort expended) circumstances)

slide5

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“what” motivates salespeople

Need Hierarchy Theory

Self-actualisation

needs

Esteem needs

Belongingness needs

Security needs

Physiological needs

Physiological needs (e.g., basic salary); security needs (e.g., pension plan); belongingness

needs (e.g., friends in work group); esteem needs (e.g., job title); self actualisation needs

(e.g., challenging job).

Source: Maslow, 1943)

slide6

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“what motivates salespeople”

Two Factor Theory

Motivation factors(e.g., achievement, recognition, responsibility)

Hygiene factors (e.g., supervision, pay, job security, working

conditions)

The theory argues that:

The motivation factors or motivators are the primary causes of

motivation and address the question “why work harder”;

The hygiene factors are necessary conditions to achieve a state of

neutrality and address the question “why work here”.

slide7

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“what motivates salespeople”

  • ERG Theory
  • Existence (E) Relatedness (R) and Growth (G) needs are structured in a hierarchical order. The theory postulates that:
  • The lower the level of satisfaction in a need the more it will be desired;
  • The higher the satisfaction in a lower level need, the greater the desire to satisfy a higher level need; and
  • The lower the satisfaction in a higher level need the greater the desire for satisfying lower level needs.
slide8

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“what motivates salespeople”

Discussion Question

What are the limitations (if any) of the content theories of

motivation when applied to different cultural settings?

Provide examples to justify your answer.

slide9

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“how do salespeople choose their actions?”

Equity Theory

Equity (inequity) is defined as the belief that one is treated fairly

(unfairly) in relation to others.

A salesperson’s choice of effort to be expended is a result of a

comparison between his output-input ratio and the output-input ratios

of others.

Output of A (e.g., pay, recognition) Output of B (e.g., pay, recognition)

Input of A (e.g., effort, loyalty) Input of A (e.g., effort, loyalty)

A salesperson who perceives to be inequitably treated can change

his input, output, alter the perceptions of self and/or others, change

comparisons or leave the situation.

slide10

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“how do salespeople choose their actions?”

Expectancy Theory

Motivation is a function of a salesperson’s anticipation that a particular

behaviour will lead to outcomes that s/he values.

Motivation = function of (Expectancy x Instrumentality x Valence)

Expectancy is the salesperson’s perception that a certain amount of

effort will lead to successful performance (e.g., Can I do it?)

Instrumentality refers to salesperson’s perception of the probability that

performance will lead to certain outcomes or rewards

(e.g., What do I get for doing it?)

Valence is the perceived attractiveness or unattractiveness of an

outcome or reward (e.g., How much do I value the reward?)

slide11

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“how do salespeople choose their actions?”

Attribution Theory

Attribution theory is concerned with the “why” question.

Since different behaviors can be attributed to different factors

salespeople try to attribute success or failure as the outcome of their

behavior to some causes by posing the question “why did this happen?”

Taxonomy of causes:

Locus of control dimension (causes that are within [internal] or

outside [external] the individual);

Stability dimension (causes that are stable or unstable)

Control dimension (causes that are controllable or uncontrollable)

slide12

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“how do salespeople choose their actions?”

Goal Setting Theory

Motivated behavior is the result of conscious goals and intentions.

The theory starts from the point that a salesperson has determined to

engage in an activity and argues that a person’s inclination to act in

a particular way is influenced by the:

Anticipated result (goal);

Intention (will), which implies:

Effort (will-act); and

Strategy to reach the goal (object oriented content).

Goal difficulty and goal specificity are two important aspects that

shape performance.

slide13

Chapter 10: Motivating the Sales Force

Motivational theories addressing the issue:

“how do salespeople choose their actions?”

Discussion Question

What are the limitations (if any) of the process theories of

motivation when applied to different cultural settings?

Provide examples to justify your answer.

slide14

Chapter 10: Motivating the Sales Force

Motivational theories offering alternative explanations

Reinforcement Theory

The theory suggests that behavior is a function of its consequences

and explains how the consequences of past action influence future

action in a cyclical manner.

For example, if a particular behavior leads to a rewarding

consequence the same behavior is likely to be repeated.

Stimulus Response Consequence

The stimulus triggers a response (behavior) and the consequences

of that response (behavior) determine whether the same response

(behavior) will or will not be repeated.

slide15

Chapter 10: Motivating the Sales Force

Motivating the Global Sales Force

Cultural differences and motivation

Cultures differ on at least six bipolar dimensions:

Universalism(e.g., rules, laws) Particularism(e.g., exceptions, unique relations)

Individualism(e.g., competitiveness)Communitarianism(e.g., cooperation)

Specificity(e.g., atomistic)Diffusion(e.g., holistic)

Achieved status(e.g., what you have done) Ascribed status(e.g., who you are)

Inner direction(e.g., conscience is located inside) Outer directed(e.g., examples are located outside)

Sequential time(e.g., time is a race)Synchronous time(e.g., time is a dance)

(Hampden-Turner and Trompenaars, 2000)

Using examples, explain how differences in values as above might

complicate the task of motivating a global sales force.

slide16

Chapter 10: Motivating the Sales Force

Motivating the Global Sales Force

Salespeople are motivated by different needs.

Need for status (e.g., need for recognition and promotion)

Need for control (e.g., need to be in control and influence others)

Need for respect (e.g., need to be seen as experts who can give advice)

Need for routine (e.g., need to follow a routine that must not be interrupted)

Need for accomplishment (e.g., need more money and challenges)

Need for stimulation (e.g., need to seek outside stimulation and challenges)

Need for honesty (e.g.,need to believe in the rightness of their practices)

(Smyth and Murphy, 1969)

slide17

Chapter 10: Motivating the Sales Force

Motivating the Global Sales Force

  • Motivational tools
  • Motivational tools should satisfy at least two criteria.
  • Should generate extra effort that will help the company to achieve
  • its objectives , and
  • b) Must increase job satisfaction among salespeople.
  • Motivational tools include, but are not limited to:
  • Sales meetings;
  • Incentive programs (e.g., sales contests and competitions)
  • Recognition programs (e.g., praise, promotion, extra responsibilities)
slide18

Chapter 10: Motivating the Sales Force

Motivating the Global Sales Force

Motivation, job satisfaction, and performance

Job satisfaction refers to all characteristics of the job itself and the

work environment which salespeople find rewarding, fulfilling, and

satisfying.

Job satisfaction can be felt by anticipating a desired outcome, or

by accomplishing a certain level of performance and/or receiving a

reward.

Job satisfaction, motivation and performance are closely related.

It is important to remember that global salespeople may be satisfied

by different outcomes and rewards.

slide19

Chapter 10: Motivating the Sales Force

Summary

Motivation is an inner force that drives and directs behavior.

Motivation theories answer questions pertaining to what motivates

salespeople and how salespeople choose their actions.

The three groupings of motivational theories discussed in this chapter

are: Content, Process and Reinforcement.

Culture influences motivation through its influence on salespeople’s

values, attitudes and norms.

Sales managers have a range of motivational tools at their disposal.

Cultural differences among salespeople should be taken into

consideration when designing a motivational program.

Motivation, job satisfaction and performance are inextricably

related.