Selling and Sales Management

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By :
Prof. Amit Kumar

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“A student pursuing management education from IILM-
Graduate School of Management, for example may find
himself or herself placed in a firm as a Sales Manager.
Our goal is to prepare the student for the exciting
challenges related to leading sales organizations in
today’s hyper-competitive global economy”.
IILM-GSM
Importance of this course
Selling & Sales Management

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IILM-GSM
Selling & Sales Management

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Contents
• What Motivates Salespeople?
• Process of Motivation
• Motivational Drives
• Theories of Motivation
• The Dos and Don’ts of Motivating
• Financial & Non-financial Rewards
• Designing a Motivational Program
IILM-GSM
Selling & Sales Management Motivation of Sales Force

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What Motivates Salespeople?
• In an effort to understand what motivates the students to
attend a class session. Your instructor may ask, ‘Why
are you attending class today?’ Possible responses from
the students might include:
– I want to learn how to become a sales manager.
– I am concerned that if I’m not here I’ll lose points.
– I needed a class to graduate, and this time fit my
schedule.
– I have a special friend who is also taking the class, and I
like to be with that person.
– I heard the instructor was fun.
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Selling & Sales Management Motivation of Sales Force

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What Motivates Salespeople?
• What if you were pose the same sort of question to
sales representatives: ‘Why do they go to work selling
every day?’ The possible responses you might hear
include the following:
– I like to sell, and I enjoy my job.
– It pays the bills.
– Without this job, my family would not have insurance, and
we need it.
– I am in a sales contest, and I want to win the prize in front
of my peers.
– My customers are counting on me to help them solve
some of their problems at work.
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Selling & Sales Management Motivation of Sales Force

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Motive
Behaviour
Goal
Tension
Reduction
Process of MotivationProcess of Motivation
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Selling & Sales Management Motivation of Sales Force

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Motivational Drives
• Principles
• Security
• Achievement
• Approval
• Loyalty
• Advancement
• Leadership
• Human behaviour
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Selling & Sales Management Motivation of Sales Force

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Theories of Motivation
• ContentContent
• ProcessProcess
• ReinforcementReinforcement
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Selling & Sales Management Motivation of Sales Force

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Content Theories
• Need hierarchy theory
• Hertzberg’s two factor theory
• Alderfer’s ERG theory
• McGregor Theory X and Y
• Z theory of William Ouchy
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Selling & Sales Management Motivation of Sales Force

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Physiological need
Security need
Social need
Esteem need
Self actualization need
Maslow’s Hierarchy of Needs
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Selling & Sales Management Motivation of Sales Force

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Sales managers can apply this concept by using reinforcements
that meet needs at each level.
• Physiological- salary and bonuses.
• Security- Insurance (health, life, disability) and retirement
plans.
• Social or belongingness- program that balance work with
life and family commitment ( e.g. flexible hours, job sharing,
on-site daily care, paid parental leave)
• Esteem- program that recognize individuals for their sales
efforts and accomplishments.
• Self-Actualization- satisfaction with balance between
accomplishments at work and balance with home life.
IILM-GSM
Selling & Sales Management Motivation of Sales Force
Maslow’s Hierarchy of Needs

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Hertzberg's Two-Factor Theory
• Motivating factors- were found to be intrinsic to the job
and included: achievement, recognition for achievement,
the work itself, responsibility, advancement or growth.
• Hygiene factors- were found to be extrinsic to the job
and included company policies and administration,
supervision, relationship with supervisor, work
conditions, salary, status and security.
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Selling & Sales Management Motivation of Sales Force

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Process Theories
• Equity theories
• Expectancy theories
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Selling & Sales Management Motivation of Sales Force

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Reinforcement Theories
• Hull’s drive theory
• Skinner’s reinforcement theory
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Selling & Sales Management Motivation of Sales Force

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Adam’s Equity Theory
Theory propose that a sales rep weights their perceived inputs
and outcomes in comparison to others and decides if their
effort/reward ratio is equitable or fair, and then realigns their
efforts to be rewarding.
– Inputs- their perception of their training, experience,
effort, and anything they believe they contribute to the
organization.
– Outputs- their perception of their compensation, benefits,
status, job security, satisfaction, and anything else they
receive.
– Balancing- a sales representative would compare their
input/output ratio & compare it with different salesperson.
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Selling & Sales Management Motivation of Sales Force

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The resulting ratio could result in three possibilities:
1. Equity: input/output ratio is equal to others’ input/output
ratio. Reps are motivated to keep doing what they do.
2. Overpayment inequity: input/output ratio is greater
than others . Sometimes reps will increase their efforts.
3. Underpayment inequity: input/output ratio is less than
others. Reps either decrease their efforts, ask for more
or leave to find more equitable job.
IILM-GSM
Selling & Sales Management Motivation of Sales Force
Adam’s Equity Theory

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The Dos and Don’ts of Motivating Your
Sales Representatives
The are the suggestions sales managers can use to motivate
their sales force.
• Hire self-motivated people: The old adage ‘Surround yourself
with good people and you will never have any problems too big to
achieve’ would seem to fit.
• Show Trust
• Capitalize on unique strengths of each member of sales force
• Encourage some people to become experts
• Empower salespeople to make their own decisions
• Ensure that you offer rewards that are valued by all
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Selling & Sales Management Motivation of Sales Force

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Financial & Non-financial Rewards
Imagine that you just won a contest your instructor held
as part of your sales management class or in the
personal selling class. How would you like to be
rewarded for your efforts?
Would you like your reward to be an award, extra points
to improve your grade, a meal at a nice restaurant,
public recognition, a day off from class, an opportunity to
attend a training seminar at IIM or a weekend trip.
• There are many ways to reward performance. Sales and
Marketing Magazine has run a monthly column
discussing what motivates salespeople. Finding are as:
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Selling & Sales Management Motivation of Sales Force

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Financial & Non-financial Rewards
What Motivates You as a Salesperson?
• Achieving a team goal and all of us going on a four-day cruise.
• Receiving a gift from the company president at a company-wide
meeting.
• The owner verbal recognition.
• A work environment that lets me work part of the day at homes to
balance my family needs.
• A trip to Hawaii for reaching a sales goal.
• Sending me to a seminar that helps me become more productive.
• Quarterly bonuses. The extra money helps with the bills.
• Being selected for the president’s club.
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Selling & Sales Management Motivation of Sales Force

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Designing a Motivational Programme
• Programme objective
• Motivational tools
• Individual methods
• Group methods
• Communication
• Feedback
IILM-GSM
Selling & Sales Management Motivation of Sales Force