1. By Prof. Raghavendran V

2. Nature of Motivation
The meaning of word motivate is to Move or
Activate. Motivation is an internal feeling
and an energy force within sales person that
drives them to behave in a certain way. It can
be both the forms of Positive and Negative
motivation and its effect on individuals are
similar in nature but different in intensity.
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3. Motivation has a system orientation, which means that
goal of individual is shaped by the forces within the
individual and its interaction with the surrounding
environments. The individual gets the feedback from
the environment which either reinforces behavior or
dissuades them from pursuing certain goals.
Motivation and satisfaction, which is achieved through a
compensation and rewards system are interrelated.
While motivation is the drive to satisfy the goals of life,
satisfaction is the experience of contentment when
one particular is satisfied.
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4. Importance of Motivation
Sales organizations are made of human beings working at
different levels and every organization needs people in
order to function.
Motivation in itself is a highly complex activity & affected
by large numbers of the factors in organization.
Employees in an organization possess a huge amount of
information based on the experiences about the
structures & processes of the sales organization and
market. Sales organizations serve as resource pool &
talent
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5. The success of a sales organization depends on the
ability and the style of the functioning of the sales
manager to motivate the sale staff.
They get demotivated due:
 Frequent rejections by customers,
 Lower esteem
 Customer complaints
 Nature of the job
 Frequent travelling
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6. The Process of motivation
The sales manager need to understand the process of
motivation & uses it to improve firm’s efficiency. He
can use this to stimulate sales person to work
efficiently.
This starts when a motive prompts people to action.
Motives are the primary energizer of behavior. Motives
are largely subjective and represent the mental picture
of the salesperson. They arise continuously and
determine the general direction of the salesperson’s
behavior.
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7. Motivation Process
MOTIVE
TENSION
BEHAVIOR REDUCTION
GOAL
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8. Motives & Motivational Drives
Motives are drivers for the behavioral action of the
customers. They can be classified as General, Primary
and Secondary motives.
 The primary motives are more than comprehensive in
nature and based on the physiological needs. It seek to
reduce tension or stimulation.
 The general motives are curiosity, manipulation,
activity & affection. These are unlearned drives to
explore & manipulate objects.
 The secondary motives are drawn out from society &
interaction of individual with the elements of society.
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9. Motivational Drives
 Principles
 Security
 Achievement
 Approval
 Loyalty
 Advancement
 Leadership
 Human Behavior
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10. Theories of Motivation
 Content theories
 Maslow's hierarchy theory
 Hertzberg’s two factor theory
 Alderfer’s ERG theory
 McGregor Theory of X and Y
 Process theories
 Equity theory
 Expectancy theory
 Reinforcement theories
 Hull’s Drive theory
 Skinner’s Reinforcement theory
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11. Factor’s influencing the salesperson
 There are various factors influence the motivation level of the
salesperson. They can be grouped as:
Personal characteristics
 Current job
 Career (Exploration, Establishment, Maintenance & disengagement)
 Demographic variable
 Experience and physiological variable
Environmental Conditions
 Territory potential
 Strength of competition
Organizational Regulatory norms
 Sales Supervision
 Span of control,
 Leadership style
 Type of communication
 Compensation plan 11
Prof. Raghavendran V

12. Designing a Motivational Programme
Sales manager can design a motivational programme to
keep up the motivation & Morale of salesperson in the
organization so that the willingness to contribute will
be high over long sustained period of time in the
organization. The following are the steps involved in
designing the motivation programme:
 Programme Objective
 Motivational tools
 Individual Methods
 Group Methods
 Communication
 Auxiliary Environment
 Feedback
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13. Motivational Issues & Evolving
Needs
NEW COMPANY EXPERIENCED
External New Recruits Internal Recruits
•Enculturate into company •Socialize into sales force
NEW •Socialize into sales force •Clarify sale role responsibilities
•Clarify sales role responsibilities
SALES
Hired Guns
PROFESSION
Old hands
•Enculturate into company Unsuccessful
•Socialize into sales force •Review Person job fit
EXP
•Clarify sales role responsibilities •Supervise & Coach
ERI
•Improve working environment
ENC
Successful
ED
•Recognize achievement
•Develop New skills
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14. Sales Compensation
Sales Organizations design compensation Plans with
multiple objectives.
 One of the key objective is attract the quality
salesperson.
 Improve the productivity level
 Optimizing the sales effort
 Reduces the sales expenses and production cost
 Reducing the attrition rate in the firm.
 Good rapport within the organization
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15. Characteristics of an effective
compensation Plan
 Based on equality & equity
 Economical & Competitive
 Flexible
 Performance of the salesperson
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16. Factors Influencing the Design of a
compensation Plan
 Financial ability of the firm
 Size of the market
 Government rules & regulations
 Nature of the product
 Educational qualifications of sales person
 Work Experience
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17. Types of Compensation Plan
An effective compensation and reward system
management involves selection and proper utilization
of firm’s reward to direct the sales staff behavior
attaining Firm’s objectives.
Compensation is defined as Financial & Non Financial
methods for the sales staff.
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18. Financial Compensation
 Straight Salary Plan
 Straight Commission Plan
 Bonus & Incentive
 Salary Plus Incentive Plan (Combination Plan)
 Drawing account and Commission Plan
 Allied Methods
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19. Non –Financial Compensation
 Promotions
 Recognition Programmes
 Fringe Benefits
 Expense Accounts
 Perks
 Sales Contests
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20. Steps in designing the
Compensation Plan
 Determine Sales force and compensation Objectives
 Determine Major Compensation Issues
 Implement Long term & Short term compensation
Plans
 Relate rewards to compensation
 Measurement of Performance
 Appraise the Compensation Plan
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21. Evaluation of the Sales Force
It is important to measure and manage the performance
of the salesperson. It is observed that performance
measurement and evaluation is done only for difficult
jobs in sales organization.
It is crucial process of identification, measurement and
management of the sales force in an organization.
Performance appraisal is the process of evaluating the
performance & qualifications of the sales force in
terms of the requirements of the job to ensure effective
administration, including the selection for promotion,
rewards and other recognitions on the administration.
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22. Performance Appraisal Process
Deciding on the criteria for measuring
performance
Sales force
performance
appraisal Deciding on the conduct of appraisal
process
Deciding the evaluation of individuals and
teams
Comparison of actual performance with
standards
Deciding on the frequency of the
performance appraisal
The external variables and their influences
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23. Performance Appraisal Process
Appraisal Criteria
 Relative and Absolute Judgment (evaluation)
 Trait
Focus of
 Behavior Measure
 Outcome
Performance Rating
 Forced choice scales
 Behavior Observation Scales
 Call Reports
 Silent Call Monitoring Scores
 Activity reports
 Combination methods
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24. Conduct of Performance Appraisal
Biases
Base rate information
Availability heuristics
Anchoring
Hindsight Bias
Regression Effects
Fundamental attribution error
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25. Performance Appraisal
 Individual Versus Team Appraisal
 Actual Performance
 Frequency
 Influence of External Variables
 Barriers
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26. Assignment Time: to be submitted
by 11th October’ 2011
 Explain nature & importance of Sales Motivation.
 Explain in detail all theories of motivation. (Content,
Process & Reinforcement).
 Discuss in detail of Motivational Programme
 Discover the trends in compensation plan.
 Why it is difficult to evaluate salespeople working in
teams?
 Design a self evaluation form by using a rating scale for
a salesperson working in education industry?
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27. By Prof. Raghavendran V