1、Motivation,Compensation,Leadership,Motivation,Compensation,Leadership,and Evaluation of Salespeopleand Evaluation of SalespeopleChapterChapter17ChapterChapter17Main TopicsMain TopicsThe Tree of Business Life:ManagementMotivation of the Sales ForceThe Motivation Mix:Choose Your Ingredients CarefullyC
2、ompensation Is More Than MoneyThe Total Compensation PackageChapterChapter17Main TopicsMain TopicsNonfinancial Rewards Are Many Leadership Is Important to SuccessPerformance Evaluations Let People Know Where They StandSales Managers Use TechnologyChapterChapter17The Tree of Business Life:ManagementG
3、uided by The Golden RuleThe Golden Rule:Remember that,as a sales manager,you impact the lives of your salespeople and their familiesHelp make your salespeople successful by putting their interests above your ownRemember that people come before power,influence,and wealth(PIW)ITCEthicalServiceBuilds T
4、 r u eRelationshipsTT TT T T TT TT T Motivation of the Sales ForceMotivating salespeople at two levelsMotivation of the individual salespersonMotivation of the entire sales forceMotivation is the arousal,intensity,direction,and persistence of effort directed toward job tasks over a periodThe Basic S
5、ales Management FunctionsDirecting average people to perform at above-average levelsMotivationalCompensationLeadershipThe Basic Sales Management Functions,contThe Motivation Mix:Choose Your Ingredients CarefullyThe basic compensation planSpecial financial incentivesNonfinancial rewardsLeadership tec
6、hniquesManagement control proceduresExhibit 17-1:Sales Managers Motivation MixCompensation Is More Than MoneySales performance can be rewarded in three fundamental waysDirect financial rewardsCareer advancementNonfinancial compensationAlthough a sales reward system is not the only means of motivatin
7、g salespeople,it is the most important Exhibit 17-2:Examples of Various Salary PlansCompensation Is More Than Money,contThree basic plans of financial compensationStraight salary planStraight commission planCombination planCompensation Is More Than Money,contStraight salary planAdvantages to the sal
8、espersonAdvantages to managementDisadvantages of the straight salary planWhen to use straight salary plansCompensation Is More Than Money,contStraight commission plansThree basic elements of straight commissionPay is related directly to performanceA percentage rate of commission is attached to the u
9、nitA level at which commissions begin or change is establishedDrawing accounts combine the incentive of a commission plan with the security of a fixed incomeAdvantages of the straight commission planDisadvantages of the commission planAdministrative problems with the commission planCombination plans
10、Salary and commissionSalary and bonus:individual bonus or group bonusSalary,commission,and bonus:individual bonus or group bonusCompensation Is More Than Money,contCompensation Is More Than Money,contBonus:individual or groupAcross-the-board bonusPerformance bonusSales contestsThe Total Compensation
11、 PackagePeople choose a sales career for both nonfinancial and financial reasonsThe salesperson receives numerous forms of nonfinancial compensationExhibit 17-4a:Salary and Fringe Benefits for a New RepresentativeExhibit 17-4b:Salary and Fringe Benefits for a New Representative Nonfinancial Rewards
12、Are ManyAchievement or recognition awardsTransfer to larger,more challenging sales territories or promotion to key account managementSales managers praiseLeadership Is Important to SuccessLeadershipThe leaders task and relationship behaviorTask behavior involves the leader in describing the duties a
13、nd responsibilities of an individual or groupRelationship behavior is people-orientedExhibit 17-5:Four Basic Leadership Styles a Sales Manager Can Select From to Influence SalespeopleLeadership Is Important to Success,contLeadership stylesStyle 1 TellsStyle 2 PersuadesStyle 3 ParticipatesStyle 4 Del
14、egatesChoosing a leadership styleOn-the-job coachingCoaching main element is the joint sales callExhibit 17-6:A Sales Manager Can Choose One of These Leadership Styles Based on the Salesperson and the SituationSales Management FunctionsPlanningStaffingTrainingDirectingEvaluatingThe Basic Sales Manag
15、ement FunctionsEvaluating the past toguide the futurePerformance criteriaConducting sessionsPerformance Evaluations Let People Know Where They StandManagement control systemPerformance evaluation what is it?Reasons for performance evaluationWho should evaluate salespeople?When should salespeople be
16、evaluated?Performance criteriaQuantitative performance criteriaQualitative performance criteriaConducting the evaluation sessionExhibit 17-8:Quantitative and Qualitative Performance CriteriaPerformance Evaluations Let People Know Where They Stand,contConducting the evaluation sessionBoth manager and
17、 salesperson should be prepared for the interviewBe positiveActually review performanceFinalize the performance evaluationSummarize the total performance evaluationDevelop mutually agreed-on objectivesFormalize evaluation and objectivesSales Managers Use Technology to:Manage customersManage salespeo
18、pleThe Basic Sales Management Functions,contSummary of Major Selling IssuesAn important challenge of the sales manager is to motivate salespeople using financial and nonfinancial methodsMost firms today use a combination of salary and financial incentives rather than straight salary or straight comm
19、ission plansThe sales manager needs to understand the principles of leadership and apply them to salespeople based on their individual personalities and territorial situationsSummary of Major Selling Issues,contThe performance of sales personnel is evaluated by comparing their quotas and objectives to actual sales and job activities to determine their successTo effectively evaluate salespeople,managers should develop procedures to ensure fair treatment