Download - Session 7 Leadership and Motivation
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7 Sales LeadershipSupervision and
Motivation
Leadership is the art of getting
someone to do something you
want done because he wants to
do itDwight Eisenhower
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A Practical Problem
Your company introduces CRM. Most accept it and
follow it.
Sunil Malhotra, your star performer rejects it outright and
continues to be the best performer.
What do you do?1. Fix up a time and place for a meeting him. You tell him that he
will enter the data every evening else he stands to lose his bonus
2. Tell other sales persons to influence Sunil
3. At the next meeting have a long discussion on the subject without
taking names so that the guilty get the hint
4. Tell Sunil that you need to travel with him for a week. Have him
prepare the itinerary and include details of all the customers he
plans to meet
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Effective
Sales Management
Leadership
Sales Leadership Overview
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Leadership Skills
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IntuitionAbility to anticipate change
and take risks
Value CongruenceCommunication skills, power
of conviction, ability to
delegate
Self-understandingAbility to perform under
pressure and accept
feedbacks of all kinds
VisionAbility to look into the future
and design changes to deal
with it
EmpowermentInvolving sales people in
setting objectives and
planning
Leadership
skills
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Sales Manager Power
The belief that a person has valuable knowledge or skills in a given area.Expertise Power
Perceived attractiveness of one party to anotherReference Power
The designated right to the leader Legitimate Power
Ability for the manager to reward the other person for a designated action.Reward Power
Belief that one party can remove rewards and provide punishment to affect behavior.Coercive Power
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CHANGE MANAGEMENT PROCESS
Develop Sales Support Implementation Strategies - pilot test programs.
Measure success of change
Redesign Sales Force based on:
Knowledge of Customer Buying Process
Buyer segmentation and deployment of sales resources
Change in Sales Process based on buyer segments
Assessment of the customer environment in which the company operates.
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Critical Leader Behaviors for Different Situations
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SITUATION
Transactional
Leader Behaviors
Transformational
Leader Behaviors
Informing
Basic Rules
Verbal
Feedback
Articulating
a Vision
Fostering
Group
Goals
Providing
a Role
Model
Individualized
Support
Newly hired,
inexperienced rep
Veteran rep; low
performance due to
burnout
Unstable situation;
crisis environment
High-performing rep;
like autonomy
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Transformational Vs. Transactional
Leadership
Attributes Transactional TransformationalSales managers source
of power
Rank, position Character, competence
Manager supervision Important Less important
Coaching emphasis Evaluation of results Development of salesperson skills
Salesperson reaction Compliance Commitment
Time frame Short term results Longer term development and results
Emphasis of rewards Pay, promotion, etc. Pride, self-esteem, etc.
Where change occurs Salesperson behavior Salesperson attitudes, commitment, values
Where leadership found Sales managers behaviors Salespersons heart
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Su
pp
ort
ive
Be
ha
vio
r
Low High
High
SupportingSales person decides
and manager
supports
SellingAsking for ideas but
still directing
TellingOne way
communication and
highly authoritative
DelegatingReach agreement on
the cause of the
problem and then let
the sales person
solve it
Directive Behavior
Situation Leadership
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Guidance on What, where, when and how to do it
De
gre
e o
f li
ste
nin
g a
nd
pro
vid
ing
su
pp
ort
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COACHING
Feedback:
Territory and call planning
Attitude towards products and specific customers
Knowledge product, customer, industry, competition, territory and company policies.
Selling skills required at all stages of sales process
Role modelling
Punctuality Grooming Ability to listen Ethical
Trust
Integrity Reliability Competency
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COACHING
Situation Important Points
Prior to Sales Call
1. Who is being called on?
2. What happened last time?
3. Objective of call?
4. Objections may arise?
5. How to handle objections?
6. Who are key players?
7. Developmental points last call?
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COACHING
Situation Important Points
During the sales call
1. Let salesperson control the call.
2. Answer necessary questions briefly.
After the sales call
1. Ask for self-evaluations.
2. Reinforce positive.
3. Suggest effective responses.
4. Keep records.
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SALES MEETINGS
Sales persons hate these the most.
Sales Managers need to:
Define the meeting objectives clearlyo New product introduction
o New marketing and advertising programme
o Train people for advanced selling methods
o Recognise performance
Location, Timing and Budgets
Sales Managers need to keep the interest alive,
ensure maximum participation and conduct follow
up to ensure successful meetings
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Tools and Techniques of Leadership
Personal contact what to check?Sales reports a control or a planner?Laptops and/or mobiles for
Better customer and industry informationSelling assistanceSales supportReporting responsibilitiesCommunication
Printed aidsMeetings How to handle them?Indirect supervisory aids
Compensation plansTerritoriesQuotasExpense accountsSales analysis procedures..\Videos\An Inspirational Video 1 - The Law Of Attraction - YouTube (360p).mp4
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Motivation of Sales Force
I believe I can fly,
I believe I can touch the sky! R. Kelly, Space Jam
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Sales Force Motivational Model
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What is
Motivation?How do sales
persons
differ?
What are the
different
theories of
motivation?
MOTIVATION TOOLSo Self Management
o Quotas
o Incentive Programmes
o Recognition
Programmes
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Four Basic Questions
What arouses salespeoples behaviour?
What influences the intensity of the behavioural
arousal?
What directs the persons behaviour?
How is this behaviour maintained over time?
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Sales Motivational Mix
The arousal, intensity, direction and persistence of
peoples behaviourExtrinsic outcomes salary, benefits, promotions,
avoiding punishmentso Concentration on rewards
Intrinsic outcomes challenging work, feeling of
personal worth, sense of accomplishmento The activity is the reward
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Importance of Motivation
Changes in marketing environment
Economic, technology, legal
Diversity in Company goals
Sales volume
Profits
Customer satisfaction
Unique nature of the sales job
Lonely, rejected, demanding customers, aggressive
competitors
Individuality of salespeople
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Motivational Conditions in Sales
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Are the
rewards worth
the effort?
Does better
performance
lead to greater
rewards?
Does more
effort lead to
better
performance?
GREATER
EFFORT
YES YES YES
THE SAME OR LESSER EFFORT
NO NONO
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Individual Needs
Sales Force Needs Action by Sales Manager
Status Change designation. Enhance facilities
ControlInvolve sales person in setting quotas and call
planning
RespectInvite sales people to gathering of top executives
Put pictures of top performers in ads and newsletters
Accomplishment Set reasonable goals and calls
StimulationRun short term sales contests
Schedule sales meetings in exotic locations
Honesty Deliver all rewards and benefits promptly
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Sales Force Needs
TYPE CHARACTERISTICS
The CompetitorWants to win and defeat competitors or even colleagues.
Highly verbal and normally does what he says
The Ego DrivenWants to win and feels there is no competition.
Considers himself as an expert and hence changes jobs
frequently with ego being hurt
The AchieverSelf-motivated and sets high goals for himself. Keeps
raising the bar. Derives satisfaction of accomplishment
without bothering as to who gets credit.
The Service
OrientedMajor strength is building and cultivating relationships.
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Vrooms Expectancy TheoryA persons motivation to exert efforts depends on his
expectations of success
Higher the motivation, greater the effort leading to superior
performance
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EFFORT PERFORMANCE REWARDExpectancy Instrumentality ValenceValue
of
Reward
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Career Stages
Primary concern is finding a suitable occupation Underdeveloped skills and knowledge Many drop out or are terminated Low expectancy, instrumentality, high valence for personal growth
Exploration
Primary concern is improving skills and performance Lack of promotion may cause disengagement or quitting New commitments make pay important High expectancy instrumentality, high valence for promotion and pay
Establishment
Primary concern is maintaining position, status, and performance Have highest sales volumes and percentage of quota and pay High valence for recognitions, respect, and pay Low valence for promotion
Maintenance
Primary concern is preparing for retirement and/or developing outside interest
Low valence for higher order and lower order rewards Low instrumentality
Disengagement
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Career Stages Sales Manager Role
Proper training on product, company and environment Sales process training Reasonable goals
Exploration
Greater autonomy Instil sense of healthy competition Cater to esteem needs
Establishment
High targets More security Building supervisory skills
Maintenance
Fire or limit area of influenceDisengagement
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Sales Persons Perceived Reasons for Failure and Motivational Impacts
Perceived Reasons
Motivational Impact
Positive Negative
Ability
Seek help from others
Get additional training
Increase effort
Become frustrated and
discouraged
Give up
Effort Behaviour
Work harder
Make more calls
Work longer hours
No change in behaviour
Strategy Behaviour Change selling strategy No change in behaviour
Task Difficulty
Work harder
Change strategies
Seek help
Become frustrated and
discouraged
Give up
Luck No change in behaviour Change the situation
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Motivational Tools
Financial
Salary
Commission
Bonus
Fringe benefits
Combination
Non Financial
Promotion
Sense of accomplishment
Personal growth opportunities
Recognition
Job security
Sales meetings and conventions
Sales training programmes
Job enrichment
Supervision
Performance Evaluation
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Guidelines for Motivating Salespeople
Differentiate between cant do and wont do
Segment the sales force to individualise the
motivational programmes
Communicate and be the role model
Praise in public and criticise in closed rooms
Handle plateaued salespeople separately
..\Videos\Employee Motivation - Elements of Greatness . - YouTube (360p).mp4
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Next Session
Compensation and Sales Expenses
Reading Chapter 12
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