Monday, August 23, 2010

Methods of Motivation

Thorough knowledge of each salesman’s motives enables sales manager and sales supervisors to appeal to the specific motives to which a salesman or a group of salesman will respond.  It goes without saying that motivation is going to be very effective on individual basis than on group basis as all men are not lured by the same set of motives.  When a salesman’s motives have been determined, they can be stimulated by external influences called incentives, which arouse his motives and incite him or her to action.

Good incentives stir the motives of salesmen release their drives and influence their conduct to gain satisfaction of their needs.  Incentives are classified in a number of ways – as positive and negative, financial and non-financial, material and metal.  Positive incentives are cash awards, praise, promotion and recognition and the negative incentives can be threats, discharge, demotion, and insults.  It is the wise use of these positive and negative incentives that plays important role in getting much; for at times, positive or negative incentives work well.  Financial incentives are money rewards such as commission, bonus, profit sharing, cash prizes, and higher salary than others.  On the other hand, non-financial incentives are recognition, praise, pride in work, participation, promotion, acceptance, job satisfaction, job security and the like.  Though financial incentives are the strongest, yet non-financial incentives are equally important.  Material incentives are financial rewards such as salary, commission, bonus, prizes; mental or social incentives are desire to excel, self-respect, social acceptance, self-expression, prestige and so on.

Sales force can be motivated in two ways as on : (i) on individual basis and (ii) group basis.  Let us examine these two methods at length.

(i)    Individual Basis
Individual motivation is most effective in stimulating his interest and getting best response for no two salesmen are equally identical.  Personal and casual relationships between manager and his salesmen provide regular opportunity to motivate salesmen by showing them respect for their personal dignity.  Praise for good work works wonders.  He can elicit interest, devotion and cooperation if they have satisfactory participation. Personal experiences of sales managers and sales supervisor will stimulate the sales force to emulate their leader. These can be:

1.    Personal conference.  Personal conference between sales manager, supervisor and salesman provide salesman with a medium of self-expression and on outlet for his likes and dislikes.  It is an opportunity to share information discusses the issues, assure security, review the work progress and generate a sense of belongingness. These conferences are to be held at regular intervals, in such social settings such as club, restaurant, home of a sales manager, sales supervisor or salesman.
2.    Personal correspondence.  Writing of personal letters to salesmen and getting replies from them is really very effective method of motivating the sales-force as it grants individual salesmen consideration, praise and recognition.  A letter encouraging poorly performing salesman changes his mind and the result is that the sales manager earns loyalty and co-operation of that salesman.  To get the best of such letters, the tone must be positive, optimistic and encouraging that builds mutual trust and confidence.

(ii)    Group Basis
Salesmen are also motivated in groups or batches through conventions and conferences, publications, booklets and handbooks, motion pictures, contests, participation programs, suggestion systems and group compensation plans.  Let us know these too.
   
1.    Conventions and conference.
These refer to group meetings of salesmen that provide unique opportunities for them to participate, gain social satisfaction and express their views on all the matters influencing their work.  These meetings conducted properly, create interest, inspire and raise their morale to new heights.  The possible social barriers are cleared between the management and the sales-force where they are deeply impressed by the resources of the companies, its growth, status in industry and its efforts of new products.  There can be several types of sales conferences such as national conventions at head quarters, sectional conventions in districts, local sales meetings in branches, conventions by telephone, by television by mail, even there may be traveling sales convention.
2.    Periodicals/publications.
A periodical devoted totally to a salesman is an effective dose of motivation. It gives salesman a real sense of participation in the enterprise as it keeps on informing them of company policies and programs.  Salesmen are invited to write articles sharing their rich and vary experiences for the benefit of others.  These publications motivates salesmen to a greater loyalty and performance by keeping salesmen, informed about a company’s expansion, addition of new products, research and developmental achievements, diversification, improved competitive position in the line and the like.  These publication enjoy high degree of reader interest because, its contents are salesman’s achievements, company news, details of new sales contest news, letters to editor, sales training matter and material, work of successful salesman, case histories, hints to salesmen to cut expenses, prospects, demonstrate, sales equipments, prize-winning sales ideas.
3.    Booklets and handbooks.  Salesmen are to be informed about new company policies, programs and achievements.  This is done through booklets, handbooks, bulletins and folders.  We consider here orientation packet, salesman’s manual and handbook and booklets and folder. “Orientation packet” contains several printed booklets or folders to inform them about the history of the company, its products and policies.  It is called as packet as it contains a hand book – a magazine – history of the company – annual report – organizational manual – policy book – product catalogue – sales training manual – proofs of current ads and other material.  “Sales manual describes sales techniques, methods of meeting objections, demonstrating, closing the sales and dealing with buyers.  Hand-book, on the other hand, includes detailed information about salesman’s benefits, pension plans, relief and loan plans, life insurance, hospitalization plan, savings plan, vacation transfers, promotions, absences, compensation, expenses etc. “Booklets and folders” contain facts about new products, researches, advertising, organizational changes, speeches by major executives, changing economic and business outlook, and the like.
4.    Motion pictures. Salesmen can know more and effectively about their company, products and operations through motion pictures.  There is no other better way of telling and convincing of salesmen of company’s past history- the line of production, the process of manufacture-research and developmental activities, company’s present growth, future growth, expansion through diversification.  Even the literature read can be reiterated effectively by motion pictures.
5.    Sales contests.  Salesmen are looking for an opportunity to exhibit their abilities of out-selling their associates.  This is possible through sales contests.  It is one that appeals to the desire of salesmen to excel, to enjoy the esteem others, to be recognized and to belong to a winning group.  His competitive spirit is channeled by contests into more constructive activity.  The aim of sales contests are: (1) to maintain and increase sales volume, (2) to use it as motivating dose to do the job more effectively, (3) to clear off the old stock or to introduce new products, (4) to improve personal performance of competitive spirit, (5) to develop group consciousness or team-spirit (6) to popularize a product that has no or least demand (7) to accelerate collection of dues.  To take advantage to the fullest extent, such contests must be equitable, should give equal chance to all, should spread the spirit of cooperation, to boost up the morale, the rewards must be worth participating.  Those persons who win such contests are given prizes in the form of hard cash, merchandise, or both, certificates of honor, medals, vacation awards and travel grants.
6.    Participation programs. Sense of participation is very strong motive of majority of salesmen.  They desire to voice in the matters that affect their work.  They do not want to remain on pay rolls as employees.  They want to feel that they are part of business.  That is why, they want to get all the information about their business and its problems, and they want to express their views in planning and implementation sales policies and programs.  This is done through meetings with management that clears gaps and fosters sounder human relations.  A committee consisting of salesmen and the representative of management solves this problem of participation.
7.    Suggestion system.  A sales suggestion system can be an effective motivating device that improves the morale and efficiency of sales-force as it encourages to propose worthwhile ideas to management of improving sales efficiency and reducing sales costs.  Any successful suggestion system provides a way for salesmen to contribute practical ideas for increasing sales volume, reducing costs, outline sales expenses, expanding distribution and improving sales training, supervision, advertising and promotion, customer service, sales policies, territory coverage and the like.  A separate suggestion committee should be plan the system determining awards, procedure for submitting suggestions, judging their merit, declaring the winners and follow-up actions.
8.    Financial security programs. Financial security is more important for majority of sales people.  Among all the securities, financial security is the strongest motivating force that stimulates salesman’s interest, improves efficiency and boosts morale.  That is why, most of the companies have recognized this fact and have granted various financial benefits to the salesmen such as group life insurance, health hospitalization, accident, dental, medical, surgical services, company loans at low rates, retirement plans, vacation with pay, credit facilities, dismissal compensation, educational aid and the like.

No comments: