Examen 2 Flashcards
Motivation and Control of the Sales Force
series of dynamic interpersonal processes that initiate, direct, intensify, and maintain work-related behaviors of sales personnel, oriented toward goals and objectives.
Direction
Physical and mental effort in an activity, choosing which activities to focus on.
Persistence
Duration of effort.
Intensity
Level of effort applied.
Content Theories
Hierarchy of Needs: People are motivated by a hierarchy of needs, progressing through psychological development and higher-order needs.
ERG Theory
Existence (physiological and security needs).
Affinity (social and esteem needs).
Growth (self-actualization).
Needs Theories:
• Power: Desire to dominate, influence, and have authority.
• Achievement: Mastery and completion of difficult tasks.
• Affiliation: Friendships and relationships with peers or customers.
Two-Factor Theory:
Satisfaction: Motivators (job itself).
Dissatisfaction: Hygiene factors (company policies, salary, safety, working conditions).
Equity Theory:
Employees compare their work contributions and rewards with others.
Expectancy Theory
Motivation is based on the expectation that effort will lead to desired performance and rewards.
Attribution Theory
Perception of events (success or failure) as internal or external, affecting effort levels.
Goal-Setting Theory
Motivation increases when clear goals are linked to rewards.
Organizational Behavior Modification (OBM):
Uses rewards and punishments to reinforce behaviors.
Positive Reinforcementv
Rewards to encourage behavior.
Punishment
Negative consequences to discourage behavior.
Negative Reinforcement:
Removing unpleasant conditions when desired behavior occurs.
Extinction
Ignoring undesired behavior to eliminate it.
Extrinsic Rewards:
Controlled by managers or customers.
Intrinsic Rewards:
Internal psychological or behavioral rewards.
Potential Dangers of Incentive Programs
Competitive events are often short-term.
May lead to temporary sales increases but destroy morale if not managed properly.
Sales Contests:
Used to motivate and reward staff for achieving goals. Must have clear purposes, prizes, and effectiveness evaluations.
Sales Meetings:
Two-way communication opportunities between the sales team, marketing, and offices.
Organizational Climate
Staff perceptions about their work situation.
Organizational Commitment:
When employees identify with the company’s values and goals.
Job Commitment:
Degree of employee participation in their work (high, medium, or low).
Sales Training
Increases long-term profits, improves planning and selling skills, strengthens customer relationships, and reduces turnover.
Assessing Training Needs
Identifying knowledge gaps.
Training Content:
Prospecting, visit planning, sales presentations, handling objections, closing sales, follow-ups.
Leadership Fundamentals:
Effective communication, influence, inspiration, ethical and moral values, and decision-making abilities.
Leadership
is emotional and inspires people
administration
involves planning, organizing, and controlling tasks.
Personal Power
Expert power (skills, knowledge, intelligence).
Position Power:
Legitimate power (authority), reward power, coercive power.
Planning Process:
- Analyze the situation.
- Determine market potential and forecast sales.
- Set goals and objectives.
- Develop strategies.
- Allocate resources and budgets.
- Implement the plan.
- Evaluate and control performance.
Market Potential:
Maximum industry sales possible.
Sales Potential:
Maximum sales a company can achieve.
Sales Forecasting:
Predicting future market demand for a product.
Methods for Forecasting:
Qualitative: Executive opinions, sales force estimates, surveys.
Quantitative: Time-series analysis, regression analysis, econometric models.
Sales Territory Management
A geographic area assigned to a salesperson.
Sales Territory Review:
Identifying problems like overlapping territories, outdated assignments, or sales potential overestimation.
Effective Time Management:
Prioritize sales activities, balance time between clients and paperwork, and optimize routes.
Efficiency
focuses on cost reduction
effectiveness
focuses on results.
80/20 Rule:
80% of sales come from 20% of customers/products.
Budget Planning Process:
- Analyze past performance.
- Identify market opportunities.
- Allocate resources to territories and activities.
- Monitor and adjust.