Page 58 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes remuneration, additional payments may have no effect on motivation. Second, the theory implies
that what may act as a motivator for one sales person may not be effective with another. This
follows from the likelihood that different salespeople will have different combinations of needs.
Effective motivation results from an accurate assessment of the needs of the individual
salespeople under the manager's supervision. The overriding need of one sales person may be
reassurance and the building of confidence; this may act to motivate him or her. For another
who has great need for esteem but a problem regarding work rate, the sales manager may try to
motivate by displaying to colleagues at a sales meeting his or her relatively poor sales
performance.

Notes 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-actualise The desire for self-fulfillment in achieving action
what one is capable of for one's own sake —
'Actualised in what he is potentially' (Maslow)

3.1.4 Herzberg's Two Factor Theory

Herzberg's dual factor theory distinguished factors which can cause positive dissatisfaction but
cannot motivate (hygiene factors) and factors which cannot cause positive motivation.

Example: Hygiene factors included physical working conditions, security, salary and
interpersonal relationships.

Directing managerial attention to these factors, postulated Herzberg, would bring motivation
up to a 'theoretical zero' but would not result in positive motivation. If this were to be achieved,
attention would have to be given to true motivators. These included the nature of the work itself
which allows the person to make some concrete achievement, recognition of achievement, the
responsibility exercised by the person, and the interest value of the work itself.
The inclusion of salary as a hygiene factor rather than as a motivator was subject to criticisms
from sales managers whose experience led them to believe that commission paid to their
salespeople was a powerful motivator in practice. Herzberg accommodated their view to some
extent by arguing that increased salary through higher commission was a motivator through
the automatic recognition it gave to sales achievement.
The sales person is fortunate that achievement is directly observable in terms of higher sales
(except in missionary selling, where orders are not taken, e.g., pharmaceuticals, beer and selling
to specifiers). However, the degree of responsibility afforded to salespeople varies a great deal.

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