MKT 363: Sales Mgmt - Chapter 8

Intrinsic Motivation Factors

Occurs when a person feels a sense of satisfaction, mastery, and other positive feelings from doing an activity that is “rewarding.” “Love” their work and take “pride” in the feelings of accomplishment it provides them.

Extrinsic Motivation Factors

Focusing on what they receive for their efforts. What they are doing is not driving their efforts; it’s what they receive for doing the important work . Includes wages, incentives, awards or a job title that reflects

Motivation

The desire and willingness to expend effort to reach a certain goal or outcome; a consequence of “many forces” operating simultaneously in a person and the person’s surroundings.

Law of Effect

People tend to repeat rewarded behaviors; behavior that results in a pleasant outcome is likely to be repeated (vice versa).

Maslow’s Hierarchy of Needs

When needs at one level are met, factors at the next level will motivate a person

• Physiological: basic needs; salary & bonuses

• Security: need to be safe from harm; insurance and retirement plans

• Social: need to have interaction and love from others; programs that balance work with life and family commitments

• Ego: programs that recognize individuals for their sales efforts/accomplishments; need to feel good about yourself and receive recognition

• Self-Actualization: need to reach one’s fullest potential; satisfaction with the balance between one’s accomplishments at work and home life

Herzberg’s Motivation-Hygiene

Reps need motivators present, like job satisfaction, recognition, and growth

• Motivating factors are intrinsic to the job and include achievement, recognition for achievement, the work itself, responsibility, advancement, and growth; ensure sales reps find their work interesting and challenging

• Hygiene factors are extrinsic to the job and include a company’s policies and administration, work conditions, supervision, one’s salary, relationship with supervisor and peers, one’s status, and security; ensure positive and motivating hygiene factors

Process of Motivation

What someone does, for how long, and at what level of intensity

Expectancy Theory

A person must believe that whatever is asked can be done and that the promised outcome will take place. They must feel that the net gain is personally valuable.

• When asked to perform a task, a mental assessment of the likelihood that a given level of effort will lead to a particular performance,

Equity Theory

People seek treatment in the same way they are rewarded for job performance: they compare the ratio of their outcomes (rewards) to their inputs (effort/work) with that of comparable persons.

Generational Motivational Issues: Traditionalists

Know how to follow rules & appreciate more formal communication; hardworking, loyal, reliable workers; want to be respected with a meaningful title; admired by millennial counterparts for their wisdom

Generational Motivational Issues: Baby Boomers

Experienced economic prosperity and periods of social consciousness; dual-career couples who work long hours and struggle to balance family lives; expect others to work hard; value cooperative teamwork, communication, and promotions/leadership positions/recognition

Generational Motivational Issues: Generation Xers

Raised by parents who both worked & have shifted the workplace emphasis from materialism to focus on family; moving into managerial positions and prefer independence over teamwork; computer use and multitasking are second nature; value work opportunities that are changing and allow growth; flexible working arrangements are critical; bonus days off may be valued more than traditional monetary bonuses.

Generational Motivational Issues: Millennials

Largest segment in the workforce, has experienced tight job markets; have been counseled to find good jobs that are right for them; follow Xers in terms of their work-life balance requirement; have a high level of social consciousness and responsibility; like immediate feedback and rewards

Generational Motivational Issues: Generation Z

Just beginning work careers; digital native who have been brought up with the internet and computers; have a global and inclusive orientation; interested in seeing their workplaces operate more informally/progressively

Progressive vs. Regressive Plans

Progressive Plans: increase in the percentage commission a firm’s sales reps earn for each level of sales

Regressive Plans: decrease in the percentage commission a firm’s sales reps earn for each level of sales

Defined Contribution Program

A program jointly funded by an employer and an employee includes 401 (k) plans, IRAs, and profit-sharing plans.

Expense Accounts

Unlimited Plan: all of a salesperson’s expenses are covered

Per Diem Plan: allocates each salesperson a certain amount of money for each day traveled

Limited Plan: exact amounts for each meal and travel expense are set