Page 124 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes

Tasks
1. Given below are certain types of selling jobs. Suggest a compensation plan which
will be the most appropriate in each case.

Job Compensation Plan
(a) Salesperson employed with a bank ..........................................................
and selling credit cards.

(b) Salesperson selling air conditioners ..........................................................
to company dealers.
(c) Salesperson selling generators to ..........................................................
industrial houses.
(d) Salesperson employed by a hotel, ..........................................................
selling hotel services.
2. Critically evaluate the compensation scheme adopted by (a) M/s Shriram Honda
Generators (b) BPL and (c) American Express Credit Cards.

9.3 Motivational Theories

Motivation has been researched by psychologists and others for many years. A number of
theories have been evolved which are pertinent to the motivation of salespeople. These are the
theories of Maslow (1943), Herzberg et al (1959), Vroom (1964) and Likert (1961).

9.3.1 Maslow's Hierarchy of Needs

Maslow's classic hierarchy of needs model proposed that there are five fundamental needs
which are arranged in a hierarchy as shown below.

Table 9.1: Maslow's Hierarchy of Needs

Category Type Characteristics
Physical 1. Physiological The fundamentals of survival, e.g., hunger, thirst
2. Safety Protection from the unpredictable happenings in life, e.g.,
accidents, ill health
Social 3. Belongingness Striving to be accepted by those to whom we feel close
and love (especially one's family) and to be an important
person to them
4. Esteem and Striving to achieve a high standing relative to status
other people; a desire for prestige and a high reputation
Self 5. Self-actualisation The desire for self-fulfillment in achieving what one is
capable of for one's own sake - 'Actualised in what he is
potentially' (Maslow)

Maslow argued that needs form a hierarchy in the sense that, when no needs are fulfilled, a
person concentrates upon his or her physiological needs. When these needs are fulfilled, safety
needs become preponderant and become important determinants of behaviour. When these are
satisfied, belongingness becomes important - and so on up the hierarchy.

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