Page 62 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes Freedom or autonomy satisfies the psychological needs and is like power pay (which is a
reward), making the job of sales person more important in the organisation.

Reward and Recognition

Although the sales quotas, sales contests, convention and conferences have positive carry over
effects, these are short lived techniques of motivating salesmen. On the other hand reward and
recognition of sales persons accomplishments are more enduring and relatively economic
methods of motivation. Some of the ways to extend recognition and honour to sales person
include conferring the title of "salesman of the month/year" congratulation telegrams from
members of top management, sales trophies, offering memberships of social clubs, mention in
company's news letter, certificate etc. Recognition and honour satisfy sales persons need for self
esteem and self respect. These are like status pay - a public acknowledgment of the value that
management places upon an individual.

Persuasion

One of the common and recommended forms for inducing high levels of motivation is through
persuasion. In this situation, managers use rational arguments to convince sales persons that it
is in their own best interest to act in a preferred way. Persuasion has the advantage of getting
people to conclude that their actions were performed out of their own free will. This leads to
higher levels of self direction than reward or coercive modes of influence where one perceives
he or she acts more out of external compulsion than internal volition.

3.1.7 Financial Incentives

Now we come to the financial aspects of the motivational technique. Financial incentives are
definitely a motivating factor, but they vary at the hierarchical level of the sales person. The
need is great at lower end of the hierarchy. A financial incentive not only keep sales person on
the company rolls but also motivates them to contribute to the growth of the company and
thereby get grown individually. It is also an important managerial tool to control and direct
sales force to attain the sales objectives.
A poorly developed or administered financial plan may invite unions to organise sales force as
happened in some of the pharmaceutical companies in India. Therefore in the management and
motivation of sales force, a fairly reasonable financial incentive plan plays a very important
role. A sales force cannot be considered soundly managed unless there is a well developed and
well administered company plan".

Case Study How to Motivate your Sales Force: The Accenture Way

–by Richard J Bakosh
hat motivates a sales force? It's an age-old question, of course. But these days,
it's arguably more important than ever, as organizations in many industries
Wand different parts of the world face critical talent shortages that could impede
their plans for growth. During a time of worker scarcity, a better understanding of basic
human needs and of the methods that can sustain high levels of motivation among a
company's sales staff is important for two reasons. First, organizations need to motivate
and engage their best workers to increase the chances those workers will stick around.
Contd...

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