Page 61 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 3: Motivating and Compensating the Sales Force

Sales Contest Notes

The sales contest is an important tool to motivate sales persons. The purpose of sales contest
varies widely. It may encourage a high level of sales in general to increase the sales of a slow-
moving product or to reward the generation of new customers. It provides an incentive to show
better performance and secure more satisfactory results. However, sales contest has a few
disadvantages. One such disadvantage is that it can encourage cheating.

Example: In one company which used a sales contest to promote sales at a series of
promotional events around the country with its dealers, sales persons "stored up" orders achieved
prior to the event in order to increase the apparent number of orders taken at the event.

Also, contests, by pitching sales person against sales person, militate against the spirit of mutual
help and cooperation which can improve salesforce performance.

Sales Conventions and Conferences

These are the devices of group motivation. They provide opportunities for sales persons to
participate, gain social satisfaction and express their views on matters directly affecting their
work. They promote team work, dissolve social barriers, inspire and raise sales person's morale.
Most of the companies in India are now a days adopting this method to motivate their salesforce.

Positive Effect

The positive effect method is also an important technique for motivating the salesforce to their
best.
The proper application of praise, positive feedback, and human warmth and understanding can
impel others to perform up to their capabilities. This must be done in a genuine way and not be
perceived as overtly self serving.

Another form of motivation through positive effect occurs via a small group and peer relations.
Friendship, support and comradeship frequently serve as vehicles for creating positive feelings
towards company and job.

Leadership Style of the Manager

Leadership style of the manager plays an important role in motivating the sales person.
Inspirational leadership refers to influence through referent power. Identification of charismatic
charm is an important tool in the motivational strategy of the management. It infuses the
images and expectations for extremes of effort, sacrifice achievement and in general "the right
stuff". It is practiced through the use of professional speakers' special audio tapes and video
tapes designed to arouse and stimulate sales persons. It also tries to create and perpetuate certain
corporate myths and success stories, which indirectly motivates sales person to perform at their
best.

Freedom to Work

In order to perform his onerous duties and responsibilities, the sales person must be given a
reasonable amount of freedom and discretion in performing his job. Likert, in his studies, has
mentioned that lack of discretion has a negative impact on employees job satisfaction. Discretion
and freedom may be accomplished by allowing sales person to develop their own call patterns,
more control over the types of promotional packages that they offer to their customers, etc.

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