Sales force motivation Designing Territories and Allocating Sales Efforts ALONG WITH R] factors influencing sales force and how to design sales terriotories

2. What is Motivation ?What is Motivation ?
• Motivation is some driving force within individuals by which they attempt
to achieve some goal in order to fulfill some need or expectation.
What is Sales Force Motivation?What is Sales Force Motivation?
Motivation is the effort salespeople want to make to complete various
aspects of their jobs.

3. In term of sales force:In term of sales force:
• Motivation is the inner feeling to work better to achieve best result
• Motivation is the effort the salesperson makes to complete various activities of the sales
job
• It is desire to do better than the best.
Performance = Ability x Motivation
Types of MotivationTypes of Motivation
• Extrinsic motivation ( related to tangible rewards such as money )
• Intrinsic motivation ( related to psychological rewards such as the sense of challenge
and achievement).

4. Process of MotivationProcess of Motivation
MOTIVE
BEHAVIOU
R
GOALGOAL
TENSIONTENSION
REDUCTIONREDUCTION

5. MOTIVATIONAL FRAMEWORKMOTIVATIONAL FRAMEWORK
THE
EMPLOYE
E
THE
EMPLOYE
E
1. Identifies needs1. Identifies needs
2. Search for ways
to satisfy needs
2. Search for ways
to satisfy needs
3. Goal directed
behaviours
3. Goal directed
behaviours
4. Performance4. Performance
6. Reassesses need
deficiencies
6. Reassesses need
deficiencies
5. Rewards or
Punishments
5. Rewards or
Punishments

6. MOTIVATIONAL THEORIESMOTIVATIONAL THEORIES
• Motivational theories or behavioural concepts that are relevant to motivation of sales
force are :-
• Maslow’s hierarchy of needs
• Hertzberg’s dual-factor
• Vroom’s expectancy
• Goal Setting Theory
• Motivation Effort Performance Reward Satisfaction

7. SELECTING A MIX OFSELECTING A MIX OF
MOTIVATIONAL TOOLSMOTIVATIONAL TOOLS
• Sales manager should know each salesperson and understand his / her
specific needs.
• For designing or selecting a mix of motivational tools, a compromise
between differing needs of customers, salespeople, and the company
management becomes necessary.
• Motivational tools are divided into
(1) financial,
(2) non-financial

8. FINANCIAL REWARDSFINANCIAL REWARDS
• Basic Compensation plan
• Salary
• Commissions
• Bonus payments
• Sales Contests
• Merchandise & travel
• Through Cyberspace Incentives

9. NON FINANCIAL REWARDSNON FINANCIAL REWARDS
• Recognition awards; such as trophies, Certificates
• Promotions
• Praise and encouragement from management
• Job enrichment
• Job security
• Sales meetings and conventions
• Sales training programme
• Personal growth opportunities
• Financial compensation is the most widely used tool of motivation,
as salespeople give highest value to it

10. Factors Influencing The MotivationFactors Influencing The Motivation
Of The Sales PersonOf The Sales Person
EXPLORATION ESTABLISHMENT MAINTINENCE
DISENGAGEMENT
20 30 40 50 60
Age
GrowthinCareer

11. 1. Exploration: This is the stage where the new recruits are in the stage of
exploration & are unsure about whether selling is the career that best suits
them.
2. Establishment: In this stage the sales person have settled in an
occupation & wish to develop that occupation into a successful career.
3. Maintenance: In this stage salesperson concern is retaining the present
position, status & performance level with in the sales force.
4. Disengagement: At last stage the salespeople prepare for retirement &
loss self identity may separation from one’s sales job.

13. The Need for Sales TerritoriesThe Need for Sales Territories
• A sales territory is a grouping of customers and prospects assigned to
an individual salesperson .
• A sales territory is the customer group or geographical area for which
an individual salesperson or a sales team holds responsibility.
Territories can be defined on the basis of geography, sales potential,
history, or a combination of factors. Companies strive to balance their
territories because this can reduce costs and increase sales.

14. Reasons for Establishment ofReasons for Establishment of
Sales TerritoriesSales Territories
• To obtain thorough coverage of the market.
• To establish a salesperson’s responsibility.
• To evaluate performance.
• To improve customer relations.
• To reduce sales expense.
• To allow better matching of salesperson to customer.
• To benefit salespeople and the company.

15. Designing Sales TerritoriesDesigning Sales Territories
• This includes the following steps:-

16. Step 1 – Baseline Current Performance: Analyse the performance of each
existing territory including prior revenue performance, product/service revenue mix,
customer counts, prospect counts, current pipeline opportunities, sales rep talent, etc.
The output is a baseline of current territory performance.
Step 2 – Analyze Existing Customer Spend: Use historical customer spend
to determine the correlation between customer firmographic information (revenue,
number of employees, number of locations, etc.) and the spend level for each
product/service offering. The output is a frontier assessment that predicts spend
potential for each customer/prospect “segment”.

17. Step 3 – Determine Market Potential: Compile the universe of customers
and prospects, and then overlay the frontier assessment from Step 2. The output is
the spend potential for each prospect/customer which can be aggregated to identify
the total market potential.
Step 4 – Produce Initial Territories: Map the accounts by segment driver to
optimize results based on either the Focused Account Consolidation (Customer
driven), Workload Levelling (Activity driven), or Territory Compression (Cost driven)
approach. The output is an initial draft of territories including an aligned assignment
of reps - the "best" reps are assigned the "best" territories.

18. Step 5 – Re-Balance Territory Assignments: Based on territory
assignments balance territories by number of existing customers, number of
prospects, total market potential, workload, number of existing opportunities, rep
potential, etc. Consider the positive/negative implications of account re-assignments
and penetration goals to determine the optimal balancing. The output is a final set of
territory assignments.
Step 6 – Create Territory Plans: Create territory plans including the
prioritization of accounts and territory specific goals for revenue, account acquisition,
share of wallet, penetration levels, etc. Be realistic when setting goals for each territory
considering workload constraints and the “warmth” of each territory. The output is a
territory plan per territory that will govern the activities within the territory.

19. Advantages of Designing TerritoriesAdvantages of Designing Territories
and Allocating Sales Efforts;and Allocating Sales Efforts;
1.By appointing a salesman or a group of salesmen for a particular territory, the company is
able to serve his customers more satisfactorily.
2. Comparison among salesmen is possible and can be easily made. This is so because there
is equitable distribution of territories among equally competent salesmen.
3. By allocating sales territories, the entire sales field of a particular organisation can be
covered quickly.
4. Assignment of a particular territory to a particular salesman makes the sales force to
work hard, as the man working in a particular territory has fixed selling targets before him.
5. By assigning pre-determined sales territories, the sales manager instils
the element of competition among the sales force. Competition among salesmen
definitely results in more sales.

20. 6. The inefficient salesmen are easily found out by the sales organisation.
7. The organisation is able to know sales potentialities of each area. Therefore comparison
among sales areas is possible.
8. The allocation of sales territories restricts the area of operation of the salesman to given
geographical area. This helps to develop friendly relationship between the salesman and
the customers. This helps the salesmen to increase their sales volume.
9. Market survey can be easily and quickly done when a company has its sales territories
properly divided among its salesmen.
10. Allocation of sales territories ensures adequate market coverage and avoids
duplication of sales efforts.