ABSTRACT

This chapter explains the key components of motivation: intensity, persistence, and direction. A salesforce reward system, because of its impact on motivation and job satisfaction, is one of the most important determinants of short-and long-term sales performance. The chapter also explains the difference between compensation rewards and non-compensation rewards. Motivation is an unobservable phenomenon, and the terms intensity, persistence, and direction are concepts that help managers explain what they expect from their sales-people. The chapter examines the sales manager’s role in motivating the salesforce through the use of reward systems. Sales support personnel, including missionaries and detailers, are involved in situations in which it is difficult to determine who really makes the sale. Salaries can provide control over salespeople’s activities, and reassigning salespeople and changing sales territories is less of a problem with salary plans than with other financial compensation plans.