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Improving Sales Performance through Sales Force Motivation Strategies : A Study of Pharmaceutical Firms in Nigeria

Improving sales performance through sales force motivation strategy is a growing issue in the pharmaceutical industry in Nigeria. The challenges facing the industry in motivating the sales force are compounded by a variety of factors which include the global nature of the market place, government regulations on sales of drugs and no direct tracking of sales results. By adopting motivation strategy, pharmaceutical firms can improve performance. This paper explores’ improvement in sales performance from sales force motivation strategy. The authors conceptualized three dimensions of motivation strategy that are critical for superior sales performance in the pharmaceutical industry. Financial incentives, meetings with salespeople and involvement of salespersons in setting quotas. Firms level characteristics (size and age) affects motivation strategy on sales performance (sales growth and profit) using data from 25 pharmaceutical firms. The results show a strong relationship between the dimensions of the motivation strategy and sales performance.