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CHAPTER 6

CHAPTER 6. Salesperson Performance: Behavior, Role Perceptions, and Satisfaction. Changing Role of Sellers. Sales revenue may oversimplify sales effectiveness Are sellers as important as product? Sellers slightly more important, but salesperson + company create synergy

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CHAPTER 6

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  1. CHAPTER 6 Salesperson Performance: Behavior, Role Perceptions, and Satisfaction Routledge 2013

  2. Changing Role of Sellers • Sales revenue may oversimplify sales effectiveness • Are sellers as important as product? • Sellers slightly more important, but salesperson + company create synergy • Should companies invest in sales or product? • Many are investing in product while using alternative selling channels Routledge 2013 Source: HR Chally Group (2009).

  3. Understand salesperson performance model Identify components of the model Discuss role perception process Understand why the role of salesperson is susceptible to role issues Discuss how role conflict, role ambiguity, and role accuracy influence a salesperson’s role perceptions Learning Objectives Routledge 2013

  4. Determinants of a Sales Person’s Performance Routledge 2013

  5. The Model • Job performance a function of five basic factors • Role perceptions • Aptitude • Skill level • Motivation • Personal, organizational and environmental variables Routledge 2013

  6. Role Perceptions • Role accuracy – degree to which a salesperson’s perceptions of role partners’ demands are accurate • Role conflict – salesperson believes role demands of two or more role partners are incompatible • Role ambiguity – salesperson believes he/she does not have information necessary to perform job adequately Routledge 2013

  7. Aptitude • Enduring personal characteristics that determine individual’s overall ability to perform a sales job • Physical factors – age, height, sex, and physical attractiveness • Aptitude factors – verbal intelligence, mathematical ability and sales expertise • Personality characteristics – empathy, ego, sociability, aggressiveness, and dominance Routledge 2013

  8. Aptitude Characteristics • The following are a list of characteristics that make up a person’s aptitude: • Cognitive Abilities • Intelligence • Verbal Intelligence • Sales Aptitude • Math Ability Routledge 2013

  9. Personality • The following are personal traits that reflect an individual’s personality: • Responsibility • Dominance • Sociability • Self-esteem • Creative/flexibility • Need for achievement • Need for power Routledge 2013

  10. Skill • The following are the components of skill, or learned proficiency for performing tasks: • Vocational skills • Sales presentation • Interpersonal • General management • Vocational esteem Routledge 2013

  11. Motivation • Effort willingly expended on activities associated with the job • Function of: • Expectancy – estimate of effort required to improve performance • Valences of performance – perception of the desirability of attaining performance improvement Routledge 2013

  12. Different Salespeople Require Different Drivers • A more profound meaning • Delight • An objective • Team success • Leadership • Rewards Routledge 2013

  13. Leadership: Understanding the Value of Value • Sales culture of meaning • One-on-one understanding of your people • Recognition and reinforcement Routledge 2013

  14. Personal and Organizational Variables • Job experience • Closeness of supervision • Performance feedback • Influence in determining standards • Span of control • Amount of role conflict • Perceived ambiguity Routledge 2013

  15. Organizational Citizenship Behaviors (OCBs) • Sportsmanship • Civic virtue • Conscientiousness • Altruism Routledge 2013

  16. Critical Global Sales Skills • Appreciation of cultural differences • Creative problem solving • Ability to let business relationships develop • Possess strong technology skills Routledge 2013

  17. Rewards • Extrinsic – controlled by people other than the salesperson • Intrinsic – salespeople primarily attain for/within themselves Routledge 2013

  18. Satisfaction Dimensions • The job itself • Fellow workers • Supervision • Company policies and support • Pay • Promotion/advancement opportunities • Customers Routledge 2013

  19. Components of Job Satisfaction Routledge 2013

  20. Role Perceptions Lowered performance Ambiguity Conflict Inaccurate role perceptions Psychological stress Anxiety Routledge 2013

  21. Role Development Stages Salespeople convert perceptions into behaviors Role partners communicate expectations Salespeople develop perceptions Routledge 2013

  22. Sales Perceptions of the Job Routledge 2013

  23. Vulnerability of Salesperson’s Role • Operate at firm’s boundary • Performance affects many others • Role changes often, is innovative Routledge 2013

  24. Sales Technology Can Improve Sales Performance • Salespeople are now more mobile and connected than ever • Difficult to get salespeople to adopt new technology, but when they do so, they can be more efficient and reap bigger rewards • Input data anywhere • Share data • Improve responsiveness Routledge 2013

  25. Conflict and Ambiguity • Different role partners mean different expectations • Perceived role expectations are consistent among salespeople • Role ambiguity plagues many salespeople in some aspect of their job • Salespeople often perceive conflict between company policies or expectations and customer demands Routledge 2013

  26. Psychological Consequences of Conflict and Ambiguity • Salesperson becomes the “person in the middle” w/ conflicting expectations • Perceived lack of necessary information causes loss of confidence • Perceived role conflict affects extrinsic job satisfaction • Role ambiguity affects extrinsic and intrinsic job satisfaction Routledge 2013

  27. Behavioral Consequences of Conflict and Ambiguity • Dysfunctional behavior • Increased turnover • Satisfaction and performance correlate positively Routledge 2013

  28. Consequences of Job Perceptions Routledge 2013

  29. Managing Conflict and Ambiguity • Experience reduces role conflict • Increased voice in role definition reduces role conflict • Close supervision reduces ambiguity • Input in evaluation standards reduces ambiguity • Close supervision can increase conflict Routledge 2013

  30. Role Accuracy • Correct understanding of job performance expectations • Price negotiations • Promise of shorter delivery times • Handling customer back charges and adjustments Routledge 2013

  31. Common Activities for Industrial Salespeople • Selling • Working with orders • Servicing the product • Information management • Servicing the account Routledge 2013

  32. Common Activities for Industrial Salespeople • Conferences/meetings • Training/recruiting • Entertaining • Out of town traveling • Working with distributors Routledge 2013 Source: Developed from variables by William C. Moncrief, “Selling Activity and Sales Position Taxonomies for Industrial Salesforces,” Journal of Marketing Research, 23 (August 1986), pp. 261-–270 and William C. Moncrief, “Ten Key Activities of Industrial Salespeople,” Industrial Marketing Management, 15 (November 1986), pp. 309–317.

  33. Common Performance Criteria for Industrial Salespeople • Total sales volume, increase over last year • Degree of quota attainment • Selling expenses, decrease versus last year • Sales profitability, increase over last year • New accounts • Administrative performance improvement • Customer service improvement Routledge 2013

  34. Common Rewards for Industrial Salespeople • Pay • Promotion • Nonfinancial incentives (contests, travel, prices, etc.) • Special recognitions (clubs, awards, etc.) • Job security • Feeling of self-fulfillment • Feeling of worthwhile accomplishment • Opportunity for personal growth and development • Opportunity for independent thought and action Routledge 2013

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