Page 56 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes them to improve the efficiency of their work.” Motivation can be defined in many ways, it is a
psychological aspect and helps the salesman to a goal directed behaviour. Through motivation
the needs of the salesmen may be fulfilled.
Compensation is a prime motivation for the salesmen. It is difficult to devise a sound
compensation plan. It comes with experience and varies from company to company. It is designed
keeping in view the company’s goals, capabilities and requirements. The company wants to
increase sales and profits at a minimum cost whereas the sales person is interested in maximising
his earnings. An effective compensation plan takes care of both the parties. Therefore, a
compensation plan must attract, retain and motivate capable sales personnel and also work
within the company’s budget.

3.1 Motivating the Sales Force

Motivation can be carried out through financial and non-financial incentives. It is a continuous
process that carries on as the expectation of the sales person keep changing from time to time.
The main objectives of motivation are:
1. To stimulate the salesmen to improve their efficiency.
2. To establish cordial relationship between the managers and salesmen.

3. To maintain high morale among the salesmen.
4. To seek cooperation of the salesmen in achieving the sales target.

3.1.1 Need for Motivation

Motivation is specially required in sales management as the nature of job is different from the
usual work that the other members of the organisation are engaged in:

1. The job has a lot of obstacles for the salesman, as most of the customers visited don't
entertain the salesmen by giving orders.
2. The salesman has no family life as he is always enveloped in the market and the traders.
3. He has to face acute competition from competitive products. There is no fixed hour of
working for a salesman.
4. The activities of a salesman are repetitive and he gets dissatisfied from repeating his work
which becomes highly monotonous.
5. He is under pressure both from the customer (wholesaler, retailers and consumers) and
his supervisor, as both want to get the best from the deal. The salesman is sandwiched
between the two parties.
6. Too much of traveling and keeping away from home leads to health problems which
affects the salesman in the long run.

7. By working in fields the salesman does not have contacts with his fellowmen or the
members of the organisation and is posted at very distant places most of the year. Thus, he
does not have any group relationship and feels alone most of the time.
8. He does not work to full capacity and does an average job to remain in the job. This can be
overcome through proper motivation.
9. Most salesmen have a variety of needs including physiological and social needs and thus
feel that they can't satisfy their needs by remaining in the sales job which gives them
lesser opportunities to socialise with their kith and kin.

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