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Mary Kay Management. Motivation in Direct Sales Mary Kay Cosmetics is not
a traditional cosmetics company, as it sells its products ...
... Mary Kay's management must also consider the reasons their beauty consultants are
motivated to reach certain levels of achievement in the organization. ...
... Source: Mary Kay Cosmetics: Sales Force Incentives The Current Challenge: According
to top management within Mary Kay Cosmentics, the top objectives for a new ...
... Rogers, the company chairman and son of Mary Kay Ash, replaced Rochon as CEO, with
the company introducing the Velocity line under his management, aimed at 14 ...
... the Corporate Culture consultants are the most important strength, MKC management
board stated ... a. Use of Monetary rewards in Mary Kay Cosmetics depends of the ...
Submitted by Tree2499 on April 1, 2007
Category: Business
Words: 1397 | Pages: 6
Views: 211
Popularity Rank: 54,274
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Motivation in Direct Sales
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Mary Kay Cosmetics is not a traditional cosmetics company, as it sells its products directly to consumers through a sales force rather than in retail stores (Case). Each member of the Mary Kay sales force is an independent contractor with the company and works for herself (Case). Mary Kay compensates its beauty consultants in a variety of ways, ranging from commissions, to recognition, to incentive programs such as its VIP car program (Case). As it has expanded, Mary Kay's VIP car program has become a burden, ballooning to 8.5% of sales in 1988 (Case).
In sales, motivation plays an important role in maintaining happy employees and workers. Happy workers "produce more product and better service" (Hahn, 2007). Mary Kay's philosophy is that every person associated with the company lives by the Golden Rule (Case). By treating customers, business associates, and all others with such respect, Mary Kay improves not only the morale of its consultants, but also its public image. When sales people are not treated with respect, they "are more likely to treat customers with disregard and seek unemployment, costing the company great expense" (Hahn, 2007). According to Mary Kay's Sales Group Executive Vice President Barbara Beasley, approximately 70% of its consultants drop out each year, which is the lowest turnover rate in the direct-selling industry (Case). Mary Kay's business depends on its consultants to not only purchase and sell its products, but also recruit new consultants (Case). In retaining its consultants, Mary Kay must recognize their accomplishments. Mary Kay provides prizes to consultants based on the increase in their sales, as well as recognizes its consultants for their progress in recruiting new consultants (Case). Sales people have common needs: the feeling that they control their destinies, flexibility to balance professional and personal lives, and recognition and praise (Hahn, 2007).
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