From the book of Dalrymple’s Sales Management

ch. 11

By Shinta Rahmani, M.Si

Why What
the are the Motivation Tools
concer differe
n for nt
sales Self Incentive
theorie Recognitio
force Manageme Quota s
s of n program
motiva nt program
motiva
tion? tion

By Shinta Rahmani, M.Si

 Individual’s willingness to exert effort to
achieve the organization’s goal, while
satisfying individual’s need
 3 components :
1. Effort
2. Individual Need
3. Organizational Goals

By Shinta Rahmani, M.Si

3 characteristic of effort
1. The drive to initiate action on task

2. The quality of effort on a task

3. The persistence to expend effort over a

period of time sufficient to meet or exceed

By Shinta Rahmani, M.Si

Sales Force Company action to Fill Needs
Need
Status Changes titles from salesperson to area manager
Buy salespeople more luxurious car to drives
Control Allow salespeople to help plan sales quotas and
sequences of calls
Respect Invite salespeople to gatherings of top executive
Put picture of top salespeople in company ads and
newsletter
Routine Assign each salesperson a core of loyal customers
that are called on regularly
Accomplishment Set reasonable goals for the number of calls and sales

Stimulation Run short-term sales contests

By Shinta Rahmani, M.Si
Schedules sales meetings in exoctic locations
 Exploration Stage
 Early’s in one’s career, the overall concern
is finding the right occupation
 Establishment Stage
 Most people eventually change their focus
from searching for the best occupation to
committing themselves to their current job

By Shinta Rahmani, M.Si

 Maintenance Stage
 In their late thirties or early forties, people begin to
reflect on their past accomplishment
 Disengagement Stage
 Everyone inevitably withdraws from his or her job
and career. For people facing imminent retirement,
this transition period helps them to cope with the
feeling of loss of focus and to face the fact that they
will no longer be making a contribution, which has
been an important part of their careers

By Shinta Rahmani, M.Si

By Shinta Rahmani, M.Si
 The strength of the belief
 Management should be concerned with
the accuracy of the salespeople’s role
perception. Expending greater effort on
the wrong activities will not lead to
better performance.
 Salespeople’s have a tendency to make
attributions about why a certain
performance outcome occurs
By Shinta Rahmani, M.Si
 When people are certain that their
performance will be personally
rewarding, their motivation will be
higher
 This is one of the reasons for the
success of commission compensation
plan

By Shinta Rahmani, M.Si

 How much salespeople desire a
particular reward will also influence
their motivation to perform and is
referred to as reward valence
 People don’t simply look at their own
rewards, they also make comparisons
with other people’s rewards

By Shinta Rahmani, M.Si

 3 Reasons for establishing quotas for
salespeople
 To help management motivate salespeople
 To direct salespeople where to put their efforts
 To provide standards for performance evaluation
 Types of Quotas
 Sales Volume Quota
 Profit-Based Quotas
 Activity Quotas

By Shinta Rahmani, M.Si

 Large co Small co

60%
SalesVolume
55%

32%
Profit Bsed
14%

28%
Activity
14%

By Shinta Rahmani, M.Si

 When are QUOTA effective?
 By Setting a goal with Goal theory
 Difficult goals, if accepted, will lead to higher
performance than moderate or easy goals or
no goal
 For effective, management not only
setting specific goals, but also be
concerned following:
 Providing feedback
 Gaining goal commitment
 Building self confident
By Shinta Rahmani, M.Si
 Administering Quota
 Quotas are usually based on one or more of the
following : past sales, forecasted sales, sales potential
and individual and salesperson territory adjustment
 When not use quota
 When a significant portion of sales depends on
cooperation between salespeople in different
territories value
 Sales are infrequent with a long salescycle but the
dollar value is very high

By Shinta Rahmani, M.Si

 Short term promotional events intended
to inspire salespeople to a greater than
usual performance level and provide
them with rewards
 Goals and Timing

 Prizes

 Administration Issues
 Choose a good theme for contest
 Should encourage the avg salesperson to
expend extra effort
 Incentive prog should be highly promoted
By Shinta Rahmani, M.Si
 RP is similar to incentive in receiving
some money for individual or group. RP is
recognition by management for
exceptional performance. RP is longer
than incentive program
 RP based on two principle
1. Generate enthusiasm and motivation for as
many salespeople as possible
2. Get useful feedback from sales force to
improve performance opportunities even
more
By Shinta Rahmani, M.Si
 Ethical situation
 Poorly run or poorly conceived quotas and
contest have high potential for fostering
unethical behaviors by salespeople
 There is an issue whether promising
rewards detract from the jobs

By Shinta Rahmani, M.Si

 Pay is not a motivator
 Rewards punish

 Rewards ignore reasons

 Rewards discourage risk taking

By Shinta Rahmani, M.Si

By Shinta Rahmani, M.Si