Page 60 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes 3.1.6 Non-financial Motivation Techniques

The simple motivational tools of early years such as only financial benefits prove to be a poor
method of motivation beyond physiological and safety needs satisfaction on account of the
unique aspects of a sales person's job.
The non-financial incentives, thus, become an important component of the motivation mix of a
company. These are specially relevant as Dawson has pointed, "Business is on the threshold of a
new era of human and social concern, which will inevitably result in greater attention to total
human resource development by sales management".

Some of the unconventional factors that make a special rank on sales force motivation are
discussed hereunder:

Meeting between Manager and Sales Force

These are highly regarded by sales managers in the motivation of their sales teams as this
provides opportunity to managers to meet their sales force in the field, at head office and at the
sales meetings/conventions.

These meetings allow the sales manager to understand the personality, needs and problems of
each sales person. The manager can then better understand the causes of demotion/frustration
in individual sales person and respond in a manner which takes into account the needs, problems
and personality of the sales person. Sales techniques can thus be improved and confidence
boosted. According to Likert, when the sales manager encourages an "open" style of management,
salesmen are encouraged to discuss their problems and opportunities so that the entire sales
team benefits from the experience of each salesman. This results in a greater sense of group
loyalty and improved performance.

Example: The success of the marketing team can be easily attributed to the open door
policy adopted by companies in India. As one manager put it, "I know all my team of 166 sales
representatives personally, by name and make it a point to keep in touch with all of them. They
can walk in any time with their problems and they have got the confidence that most of their
problems will be handled to their satisfaction".
Clarity of Job

Clarity of job and what is expected from the sales person is a great motivator. The objectives
when duly quantified and well defined, properly connected and linked with the reward and
recognition serve as a source of motivation to the sales person.

Sales Targets or Quotas

If a sales target or quota is to be effective in motivating a sales person, it must be regarded as fair
and attainable and yet offer a challenge to him. Because the sales person should regard the quota
as fair, it is usually sensible to allow him to participate in the setting of the quota. However, the
establishment of the quotas is ultimately the sales manager's responsibility and he will inevitably
be constrained by overall company objectives. If sales are planned to increase by 10 per cent,
then salesmen's quotas must be altered in a manner consistent with this objective. Variations
around this average figure will arise through the sales managers knowledge of individual sales
person and changes in commercial activity within each territory; for e.g., the liquidation of a
key customer in a territory may be reflected in a reduced quota. Quotas can be set on rupee sales,
unit volume, margin, selling effort or activity and product type. The attainment of a sales target
or quota usually results in some form of financial benefit to the sales person.

54 LOVELY PROFESSIONAL UNIVERSITY