DESCRIBE THE BASICS OF MANAGING THE SALES FORCE, AND TELL
HOW TO SET SALES FORCE STRATEGY, SALES FORCE SIZE AND SALES
FORCE STRUCTURE-TERRITORIAL, PRODUCT, CUSTOMER OR COMPLEX
DISCUSS THE PRINCIPLES OFPERSONNEL SELLING PROCESS AND
OUTLINE THE STEPS IN THE SELLING PROCESS
THE ROLE OF VARIOUS PROMOTIONAL TOOLS LIKE ADVERTISNG,
PERSONAL SELLING, SALES PROMOTION AND PUBLIC RELARION
AS APPLIED IN THE TRAVEL AND TOURIM INDUSTRY
EXPLAIN THE 5 IMPORTANT DECISIONS TO BE TAKEN IN DEVELOPING
AND ADVERTISING PROGRAME
DESCRIBE THE BASICS OF MANAGING THE SALES FORCE, AND TELL HOW TO SET SALES FORCE STRATEGY, SALES FORCE SIZE AND SALES FORCE STRUCTURE-TERRITORIAL, PRODUCT, CUSTOMER OR COMPLEX
MANAGING THE SALES FORCE 11/16/10 Successful sales managers come in all size, shapes, colors, and back- grounds. Hospitality sales management is neither a precise science nor a formula based work procedure. Nevertheless there are some functions and Procedures that have historically been associated with the manage_ ment of a professional sales force. Successful long-run hospitality Sales requires far more professional outlook and approach.
SELECTING SALES STRATEGIES
Sales success within the hospitality industry are not the result of a hit-and-run sales mentally. Success depends on the developments of a excellent long run relationship with the clients or accounts
There are six general sales strategies. They are:
Prevent erosion of key account
Grow key accounts
Grow selected marginal accounts
Eliminate selected marginal accounts
Retain selected marginal accounts but provide lower-cost sales support
PREVENT EROSION OF KEY ACCOUNTS
It does little good to attract new customers if key customers are lost.
Determine the reasons why key customers leave and initiate corrective
Steps. Initiate and carefully manage programs that treat key customers
as royalty. A single sales/service person may be assigned to work with
only a handful of key accounts. Unless these accounts are provided
highly personal service, the risk of loss to a competitor is great.
GROW KEY ACCOUNT:
Key accounts usually offer more sales potential than is currently
Realized. Key accounts may split their business between several
provider company's business.
GROW SELECTED MARGINAL ACCOUTS:
There are currently marginal accounts for a variety of reasons. They
Experimenting or sampling your product of service.
Have received poor service in the past and therefore use your
services only when necessary
Account manager changes have resulted in splitting the business
between various hospitality firms.
Comfortable with your service but competitors have acquired the
bulk of their business through better follow up.
RETAIN SELECTED MARGINAL ACCOUNTS BUT PROVIDE LOWER-COST SALES SUPPORT:
ELIMINATE SELECTED MARGINAL ACCOUNTS:
It is difficult to eliminate these customers due to an inability to identify them when the order of reservation is placed. A professional sales force has the responsibility to remove these customers from their list of prospects or active accounts, & refrain from future sales calls & promotions directed to them.
Many accounts represent infrequent purchases or low-yield business.
SALES FORCE STRUCTURE AND SIZE 11/16/10
The diverse nature of the hospitality industry means that different
sales force structure and size have evolved. The structure of a sales
Departments depends on the culture of the organisation, size of the
Property , nature of the market, and type of hotel.
Sales force structure:
Territorial-structured sales force
Product-structured sales force
Market-structured sales force
Customer-sructured sales force
TERRITORIAL-STRUCTURED SALES FORCE:
Each sales representative is assigned an exclusive territory in which to represent the company’s full line.
MARKET-STRUCTURED SALES FORCE:
Company structure its sales force based on market segment. The
Advantage of market specialization is that each sales force can become knowledgeable about specific market segmentation.
CUSTOMER-STRUCTURED SALES FORCE:
A cusomer structured sales force recognizes that specific customers exist who are critical to the success of the organization.
COMPLEX-STRUCTURED SALES FORCE:
A large hotel might have a catering/banquet sales force(product) a convention or meeting sales force(market segment), a tour whole sale sales force(marketing intermediately), and a national accounts sales force(customer).
The Dalmahoy Golf for strong sales effort in the local market and for combination-structured sales force.
SALES FORCE SIZE 11/16/10
Customers are grouped into size classes according to their annual
The desirable call frequencies (number of sales calls on an account
The number of accounts in each size class is multiplied by the
corresponding call frequency to arrive at the total workload for the
country in sales calls per year.
The average number of calls a sales representative can make per year
The number of sales representatives needed is determined by
dividing the total annual calls required by the average calls made
by a sales representative.
DISCUSS THE PRINCIPLES OF PERSONNEL SELLING PROCESS AND OUTLINE THE STEPS IN THE SELLING PROCESS
Personal selling is an art. Effective sales persons have more than
Instict. They are trained in tactics to achieve sales success.
Eight major aspects of personnel selling. They are:
Prospects and qualifying
Presentation and demonstration
Prospects and qualifying
The first step in the selling process is too identify prospects Although the company Will try to supply leads, sales represen tatives need skill in developing their own.Leads can be developed in the many ways. They are:
Having a booth at appropriate travel or trade shows
Participating in international travel missions
Asking current customers for the names of prospects
Cultivating other referral sources, such as suppliers, dealers,….
Through leads generated by the chain
Joining organisations to which prospects belong
Engaging in speaking and writing activities that will draw attention.
Examine data source
Using the telephone and mail to find leads
The salesperson needs to learn as much as possible about the
prospect company and its buyers. The salesperson should set all
Objectives, which might be to qualify the prospect or gather
Information, or to make immediate sale.
The salesperson should know how to greet the buyer to get the
relationship off to a good start. This involves the sales persons’s
Appearance, the opening lines, and the follow-up remarks.The
Opening line should be positive
Presentation and demonstration:
The salesperson emphasizes customer benefits throughout, bringing
In product features as evidence of these benefits. A benefits is any
Advantage, such as lover cost, less work or more profit for the
Buyer. Company have developed 3 different styles of sales presentation:
It is based on stimulus thinking. It is used for the right stimulus
words, pictures,terms and actions.
It identify early the buyers needs and buying style and then uses
a formulated approach to this type of buyer.
This approach starts with a search for the customers real needs by
encouraging the customer to do most of the talking. The approach
calls for good listening and problem-solving skills.
The sales presentation can be demonstration aids such as
Booklets, movies, slides etc…during the demonstration, the sales
Person can draw on 5 influence strategies.
Many of business-to-business selling involves negotiation skills.
The two parties need to reach agreement on the price and other terms
of sales. Price is the most frequently negotiated issue include
Quality of goods and services offered, purchase volume, risk
Taking, and promotion.
Customers almost pose objections during the presentation or when
asked for the order. Their resistance can be psychological or
Logical. Psychological resistance inculdes preferenece of
Established hotel or airline, predetermined ideas, dislike of persons
decisions. Logical resistance include objections to the price, or
Certain product or company characteristics
11/16/10 Closing: Sales persons need to know how to recognize closing signals from the buyer, including physical actions, statements, and questions. Sales Person can use one of several closing techniques. Follow-up/maintenance: After the closing the sales person should complete any necessary details on delivery time, purchase terms, and other matters. Follow-up Or Foul-up is a slogan of most successful sales people. The sales person Should develop an account maintenance plan to make sure that the Customer is not forgotten or lost.
THE ROLE OF VARIOUS PROMOTIONAL TOOLS LIKE ADVERTISNG, PERSONAL SELLING, SALES PROMOTION AND PUBLIC RELARION AS APLLIED IN THE TRAVEL AND TOURIM INDUSTRY
Most effective tool at certain stages of buying process
Personal interaction with two or more people
Observe buyer’s need and characteristics.
Selling relation to long term relation
Sales force requires a longer term company commitment than ads.
Ads can be turned on and off , but sales force size harder to vary
Company’s most expensive tool.
Advertising’s public nature suggests:
Advertised product is standard and legitimate .
Buyers know that purchasing the product will be publicly accepted.
Reach masses of geographically dispersed buyers at low cost
Repeat a message many times.
Build a long term image for a product
Stimulate quick sales
It is impersonal
One way communication
Very costly (TV ads)
A collection of incentive tools designed to stimulate quicker or greater purchase of particular products or services by consumers
Tools include coupons, contests, cents off deals, premiums..
Attract consumers attention and provide info.
Offer strong incentive to purchase by providing inducements.
It says “ buy it now”- create stronger and quicker response.
Used to dramatize product offers and to boost sagging sales
Usually short lived
Not effective in building long run brand preference
PR includes a variety of programs to promote or protect a companies image or individual products.
News stories, features,
Reach many prospects who avoid salesperson and ads as news rather than sales directed communication.
It’s a new addition to the promotion mix.
Hybrid b/w advertising and public relation
Provide stories on video tape for use on television.
Eg: tele brand shows
EXPLAIN THE 5 IMPORTANT DECISIONS TO BE TAKEN IN DEVELOPING AND ADVERTISING PROGRAME
Advertising is any paid form nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor.
The hospitality and travel industries spend billions of dollars on advertising.
Wendy’s International etc.
Marketing management must make 5 important decisions in developing an advertising program.
SETTING THE OBJECTIVE.
SETTING THE ADVERTISING BUDGET.
SETTING THE OBJECTIVE
The first step in developing an advertising program is to set advertising objectives. The objectives should be based on information about the target market, positioning, and marketing mix.
The advertising objectives can be classified by their aim:
2. SETTING THE ADVERTISING BUDGET
After determining advertising objectives, a company can establish an advertising budget for each product. The role of advertising is to affect demand for a product. The advertising budget also has some specific factors that should be considered when setting a budget:
Stage in the product life cycle.
Competition and clutter.
3. MESSAGE DECISIONS
It is the third decision in the advertising management process. Creative advertising messages can be more important than the number of dollars spent. Advertising can succeed only if its message gains attention and communicates well. For developing a creative strategy requires three message steps:
Message Evaluation and Selection.
4. MEDIA DECISIONS
The fourth step is to choose the media to carry the message. The major steps in media selection are
Deciding on Reach, Frequency, and Impact.
Choosing among major media types.
Selecting specific media vehicles.
Deciding on media timings.
5. CAMPAIGN EVALUATION
Managers of advertising programs should regularly evaluate 2 effects of advertising. They are: