Sales Managment - Assignment Example

Sales Management Topic Overview of Various Ways to Motivating the Sales Staff Motivation in simple terms can be described as a process of encouraging individuals in terms of bringing about improvisation within their performance levels. This process has been in practise since long and is commonly implemented in multiple organisations. Besides, this process includes the use of techniques such as inducement, incentive provision, implementation of situational stimulants and multiple more. Moreover, by taking into consideration the current marketing scenario, it can be viewed that this process has found its niche as key component in a majority of the sales industry based corporations (Teau, 2013). If seen from the perspective of sales managers, this process appears to be of quite complex nature. This is mainly due to the fact that, a majority of the manufacturing and sales organisations mostly depend on their sales force in terms of generating the major part of their revenue. In addition, the motivation process comprises three basic elements. These elements are ‘the need’, ‘the goal’ and ‘the driving force’. Over time, multiple sales organisations have come up with incentive and innovative compensation strategies with the prime intention of keeping their sales force effective and motivated so that they are all geared up to face the upcoming future challenges (Teau, 2013). Literature Review This section will remain mostly focussed in terms of evaluating the statements and explanations made by various authors regarding this topic of multiple ways to motivate sales staff. However, in accordance with the facts mentioned by Bakosh (2007), it can be said that this author has laid significant amount of focus on multiple other aspects of motivating sales teams rather than just concentrating on the financial incentive type. As per the author, it is an utmost necessity for managers to lay prime importance in terms of effectively understanding basic employee requirements which include factors such as health, safety, security, social recognition, self-esteem and multiple more. In keeping with the author, these factors are mainly responsible for physically as well as mentally motivating the employees and thus helping them to attain desired organisational objectives. Bakosh (2007), in his article has further mentioned about the two major stages when an organisation feels the maximum necessity of motivating its sales forces. These two stages are regarding sales force retaining within the company or in cases when the entire sales team is being diverted to some other operations undertaken by the organisation. Bakosh (2007) has also mentioned that every organisation whether small, medium or of large sized must create a culture of trust within the organisation. Moreover, providing equal attention to the issues faced by every sales person is also a necessary tool of the motivation process. Bakosh (2007) has also affirmed the importance of providing effective training to the sales force with the intention of preparing them in terms of facing any sort of holistic environment. One crucial factor which the author has put forward is that the effective integration of sales force, technology and strategic rewarding factors can be utilised as the best motivational initiative which organisations might undertake for improvising their overall sales performance. In contrast to Bakosh (2007), Teau (2013) laid significant amount of focus regarding the following up of multiple motivational theories such as ‘Maslows hierarchy of needs theory’, ‘Herzbergs two-factor theory’, ‘goal-setting theory’, ‘expectancy theory’, and ‘job design theories’ among others as a step for motivating sales employees. In simple terms, Teau (2013) has provided a much wider field of analysis and study which multiple organisations might undertake for drawing out better strategies about sales force motivation. In keeping with the author and with reference to Maslow’s theory, an individual starts looking forward towards fulfilling his / her higher order needs as one the lower order needs gets satisfied. However, this theory has achieved considerable criticisms in terms of being a social philosophy rather than being a motivational theory. Teau (2013) also explained the Herzbergs two-factor theory as a contrary to that of Maslow’s theory. According to Teau (2013), Herzberg’s theory mostly comprised of crucial parts which include the hygiene factor and the motivational factor. Moreover, the author also stated that this theory has also focussed on aspects such as ‘achievement’, ‘recognition’ and ‘responsibility’ that can play the part of high level motivators. Additively, Teau (2013), in the article also mentioned that the sales organisations must include the effective presence of the sales force in terms of coming up with new realistic and achievable target plans. Teau (2013) stated that through this effort, the sales team will understand their value within the organisation and this will definitely help in boosting up their confidence and performance. The author also mentioned that the sales team compensation plans should remain bound to the company’s objectives and moreover it should be clear to the sales individuals. In this regard, Wei & Yew (2012) in their article mostly focussed on the two necessary factors which are responsible in terms of effectively motivating the sales individuals within an organisation. According to the authors, a sales team can be motivated either in terms of providing monetary benefits or non-monetary benefits. The monetary benefits include ‘incentives’, ‘allowances’, ‘cash bonuses’, ‘pay increment’, and ‘provision of company stock options’ among others. Whereas, the non-monetary benefits include ‘complimentary gifts’, ‘managerial level promotion’, ‘leadership level preference’, and ‘promotion in terms of handling new projects’ among others Moreover, Wei & Yew (2012) also stated their opinion regarding the higher effectiveness of non-monetary benefits in comparison with that of monetary benefits. The comprehension made by Wei & Yew (2012) can be ascertained to be quite similar with Teau (2013) to a certain extent. The similarity is that they agreed that non-monetary benefits help in terms of making an employee feel that he or she is worth some value to the organisation and thus effectively help in terms of boosting up their motivational levels. Contrary to opinions of the above authors, Canner & Rolander (2008) have described the importance of effective leadership practises in terms of motivating the sales force. The authors have mostly focussed upon the multiple ways though which an inspirational sales leader helps the sales force in terms of identifying and learning new methods of maintaining pace of the sales process. Canner & Rolander (2008) described how an inspirational sales leader appoints high targets to the sales force with the intention of identifying their crude capabilities. This article also highlighted the significant activities taken up by sales leaders which include spending time with the sales force, making them work under different scenarios, understanding their issues and taking their opinions about organisational processes among others. A similar aspect about the necessity of effective leadership for motivating sales force was discussed by Rich (1997), in his article. Rich (1997) pointed out a necessary fact that the sales managers should play a dual role of being a leader as well as a role model in term of motivating the sales force. Rich (1997) also concluded that even though this dual role playing concept has been always disregarded from a sales perspective but still it can be used as an effective tool depending on the current level of market competition. Summary of the Discussion with Sales Manager For undertaking this field visit and questionnaire assignment, the ‘Hubbard Foods Ltd’ was chosen. This company is an Auckland based organisation and is mainly involved in terms of manufacturing breakfast cereals (Hubbards, 2013). The objective of this live assignment was to carry out an open ended questionnaire session with the National Sales Manager of the company Mr Daniel OBrien. The summarised view of the responses to the posed questions is provided hereunder: In accordance to the first question, Mr OBrien replied that the company’s sales team was pretty strong and effective in terms of handling every situation either favourable or unfavourable. The team has got significant amount of experience about the domestic market and they seem to be highly self-motivated. For the second question, Mr OBrien replied that the company keeps a close monitoring on the performance levels of each and every sales employee. Moreover, the company has got a requisite line of trained managers who are there to understand every need of the employees. The organisation also offers attractive incentive packages to its sales employees on the successful completion of their assigned targets. For the third question asked, Mr OBrien replied that the company does include the opinions of each and every member of its sales force before finalising any strategic decision. He also mentioned that the company conducts periodic seminar sessions where discussions with the sales force are carried out. These discussions are mostly regarding techniques of attaining new quotations and contracts. These discussion sessions go along for few days where the presence of every department operating within this company gets accounted for. Mr OBrien also said that through these discussions, the company desires to create an interactive environment within the workplace. This also helps in giving the sales team employees a feeling that they are worthy assets of the organisation. It also significantly facilitates in building up their confidence and motivational levels. The employees participate actively in these sessions. Subsequently, the fourth question was regarding compensation setting to which his reply was that the incentive and the rewarding criteria get framed based on the monthly or periodical performance levels of the employees. Besides, the company also maintains a specific balance between the monetary and the non-monetary benefits which are being provided to the employees in order to keep them motivated. Above all, Mr OBrien gave a very interesting answer to the final question which was regarding leadership styles followed within the company. He answered that, here in this company they do not follow any specific type of leadership but instead they combine multiple leadership traits in terms of effectively leading their sales force. His response also included that a mixed leadership style often helps in managing employees having different mind-sets and thinking patterns. He also highlighted that in order to derive a better collaboration amid the sales staff the leadership approach also focuses on ensuring that each staff is given due importance in framing the future strategies. The leaders in the organisation aim to ascertain that organisational goals and objectives are given paramount importance without any fail. Moreover, the sales staff are provided due confidence based on their performance and any scenario related to underperformance is addressed immediately by having a direct conversation with the concerned staff regarding his/her difficulties. This kind of mutually respectful leadership approach has been valuable for the company’s recent growth and success in comparison with its key competitors. References Bakosh, R. J. (2007). How to motivate your sales force to great performance. The Journal of High-Performance Business, 1-8. Canner, N. & Rolander, J. (2008). Inspirational sales leadership a systematic approach to motivating the sales force. The Katzenbach Center, 1-12. Hubbards. (2013). All about us. Retrieved from http://www.hubbards.co.nz/about-us/ Rich, G. A. (1997). The sales manager as a Role model: Effects on trust, job satisfaction, and performance of salespeople. Journal of the Academy of Marketing Science, 25, 1-2. Teau, A. M. (2013). Sales force motivation and compensation. Artifex” University of Bucharest, 44-50. Wei, K. L. & Yew, R. (2012). Motivation of sales representatives: an insight into pharmaceutical industry of Malaysia. International Conference on Management, Economics and Finance (ICMEF 2012) Proceeding, 824-847. Appendix 1) What is your expectation about the level of motivation of your sales force? 2) What are the steps you undertake for motivating your company’s sales team? 3) Do you make monthly target decisions only within the managers or do you include the opinions of your sales individuals as well? 4) What are the criteria based on which you structure the compensations, rewards and incentive plans for your sales employees? Is it of constant type for the entire team or does it varies for different employees? 5) What are the leadership styles that you follow in terms of effectively motivating the sales team? Read More