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Chapter 1-5
HOSPITALITY
SALES AND MARKETING
Edition Fifth
James R Abbey
.
Hospitality means quality of receiving
and treating guests and strangers in a warm and
friendly manner. Derived from Latin word.
HOSPEC Classical Ethic word VS Entertainment
Hotels :First form of paid hospitality you could
reserve a place to stay, eat, and relax .
INTRODUCTION TO HOSPITALITY
SALES AND MARKETING
LEARNING OBJECTIVES
•MANAGEMENT AND STAFF DEVELOPMENT
•IMPLEMENTATION OF MARKETING AND SALES
STRATEGIES
•TRENDS OF HOSIPTALITY INDUSTRY
•FUTURE MARKETING AND SALES EFFORTS
Historical background
•Chain vs. individual Properties
•Mid 20th century 85% with property owned and
only 5% with chain
•Few resorts
•High priced
Evolution in Hospitality -1950…1970..
•Population growth
•.
•Longer life span 5.4% US POPULTAION to 8.9% 65+
•Improved incomes (two income)
•Increased Leisure time
•Expended highway system
•Development of suburbs
•Increased air travel
•Convention center expansion
Mature / World Way II Generation (40,267,984) – people born before 1946
• Baby Boomers (81,489,445) – people born between 1946 and 1965
• Generation X (61,032,705) – people born between 1966 and 1980
• Generation Y / Millenials (85,405,385) – people born between 1981 and
2000
PROACTIVE VS REACTIVE
What do these factors have to do with
hospitality marketing and sales?
CHALLENGES
•To cope with :
•Meeting the demand of the road travelers by with the development of chain
properties
Holiday inn and Howard johnson
•(standardized their design ,amenities for easy recognitions
•Air port hotels for business and leisure
•Hotel Websites
•Present and future trends continue to influence the business
Case of fast food restaurant
• During the lunch at fast food restaurant you decide to use drive thru
and order a cheese burger ,French fries and a larger coke.
• First you get into a line of others cars ,place a order,pay your money
and without a word of smile hands out a bag contains your order
• You drive away once you pulling out a fry hoping for a crisp and
instead it was soggy and luke warm. Surprisingly you got regular
burger instead of cheese burger your ordered.Your lunch experience is
bad.
Case of fast food restaurant
• Thus if the fast food restaurant has to hire more people to cook more
burgers then quickly will recognize that the cost of being total focused
on effectiveness,without efficiency will result in an unprofitable
situation.
•Let suppose fast food is committed to customer satisfaction.They advertise that if
there is any dissatisfaction they will immediately replace the order free of charge
and even deliver a new meal wherever you are.This increase customer satisfaction
However, only customer satisfaction is not the ultimate goal.
•Because to be a profitable business an organization must also be efficient .
Marketing and sales are same ?
Both are different and are interrelated to maximize revenue?
A hotel may have greatest marketing plan but it is wasted if hotel does
not have effective customer oriented sales staff
A hotel can employ a great sales person but may waste time and money
if target market and goals are not identified
Marketing and sales?
MARKETING: broader scope than sales
IS THE STUDY AND MANAGEMENT OF THE EXCHANGE PROCESS
.IT INVOLVES THOSE THINGS THAT PROPERTY WILL DO TO SELECT
A TARGET MARKET AND STIMULATE OR ALTER THE MARKET
DEMAND FOR THE PROPERTY’S SERVICES. Focus on profitability
OTHER ELEMENTS
RESEARCH VARIABLES (EXTERNAL VS INTERNAL ),ACTION
STRATEGIES,ADVERTISING,PUBLICITY & SALES PROMOTION &
MONITORING
SALES:
DIRECT EFFORT TO SELL THE PROPERTY BY;
Personel sales call, Tele-communications and mailing.
MODERN CONCEPT
How to produce customer satisfaction ,analyze sales data,
measures market potential ,gather market intelligence and
develop marketing strategies and plans
Marketing and sales?
Staffing
Three Key Management Positions Large properties
GENERAL MANAGER
DIRECTOR OF SALES
DIRECTOR MARKETING
SALES AND MARKETING ACTIVITIES
IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER
COMPLAINS
Three Key Management Positions mid size-small properties
GENERAL MANAGER
DIRECTOR OF SALES
SALES AND MARKETING ACTIVITIES
IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER
COMPLAINS
MARKETING-OUTSOURCE
• 1.Innermost contains the focal point the consumer
• 2.Middle circle marketing mix (controllable
variables)
• 3. Outer determines the uncontrollable
MARKETING MIX by Borden and Mc Carthy
Revised by Booms and Bitner
by adding 3 more Ps
•People
•Physical evidence
•Processes
1. Developing a product –service mix based on wants and needs of the
target market
2. Determining the most appropriate channels or ways (place) to reach the
market
3. Determining promotion and other communication strategies including
sales advertising and public relation and informing market of the
property’s producer service
4. Establishing a price rate mix that is competitive and will ensure fair return
of the property while providing value for the guest
INTERACTION OF MARKETING MIX
INTERACTION OF MARKETING MIX
Some difficulties
• includes fixed nature guest room cannot be suite convention center cant
be a golf course etc.
• Services (standardization ??/)
Product –Service Mix
• Product is expanded to product services guestrooms, banquet space, food and beverage
• Services like check-in check outhouse keeping and parking.
• It must be tailored to the needs and wants of the guest(Families/business)
• Bespoke packages
Place-Distribution Mix
• Accessibility of the product to the consumers. Instead of
product travelling to the consumers the consumer travel to
the product.
Some difficulties
• Role of intermediaries ( travel agent tour operators )to ensure that
product is available when and where is required in sufficient variety and
quantity.
• Product like guest room dining experience are neither shipped nor stored.
The problem of warehousing and inventory control do not arise making
distribution simpler for hospitality firms
Promotion-Communication Mix
Promotion is the way hotel and restaurant communicates to the
target market and can involve advertising and direct marketing
Promotion:
It implies persuasion. Marketer does to their customers
Communication:
It is two way exchange. Market needs and wants .Marketer does
with their customers.
Which is more effective promotion or communication ?
Price-Rate Mix
• I f the guest rejects the property and services because of its
price all previous efforts were wasted. Price rate
determination is one of the most crucial decision .Charge
different price to different buyers. Depending upon barganing
position of buyers (Individual/meeting planner etc
• It may affect the image .Suspicious about product quality.
• Reputation .
• New properties with low rates in order to build guest
awareness and sacrificing immediate profits
Peak
In –season demand is high and so as price
Valley
Off season demand is lowest .Reduced rate may offer to
Attract business
Shoulder
the period between peak and a valley and an excellent
opportunity to build business
Price-Rate Mix
Challenges of Hospitality and Marketing sales
Intangibility
Cannot see and touch?? Benefit or experience. Credibility. Service guarantees (to build
consumer confidence
Perishability
An unused guest room an empty restaurant seat etc represent business lost forever. It cannot be stocked or
inventoried to sell later .Early check out charges fail to honour their reservations
Inconsistency
Service rendered by house keeper or food server may very greatly at different hotel and restaurant or even
in the same outlet
Inseparability
Production and consumption are largely simultaneous with service .To compound the problem guest also
contact with other guests and employee .That makes the other guest part of the product and often quality of
services
Trends shaping the future of Hospitality Marketing
and Sales
1. Globalization (opportunities/challenges) Entering into new
markets (Mcdonald/KFC)
2. Consolidation (mergers, acquisition and JV)
The combining of separate companies, functional areas, or product lines, into a single
One. While in JV remains separate (construction projects)
$900 million merger between KLM and Air France will create the world's
third largest airline
Movenpick hotel acquired sherarton hotels a swiss upscale hotel chains
3. Partnership marketingis aligning yourself with other like-minded
organizations and businesses to reciprocally expose your brand to one
another's customers and provide added value to your own existing
customers The Retail Coffee Giant has partnered with Bell to offer two
hours of Free Wireless Internet Service per day to anyone who opens a
Starbucks-Bell Wireless .Account at the Starbucks website
4. Niche marketing and branding (segments) Ramada ,Inter-contenental, Marriott ,budget
hotels/extended stay
5. Technology automated digitalcheck in-check out/kiosk Smart card/laptop etc
1. Amadeus' Global Hotel Group and Newmarket’s products and services offerings is
focused on delivering cloud-based enterprise solutions in the area of central
reservations systems, property management systems, revenue management systems
and e-Commerce platform
6.Enviornmental Awareness (recycle ,energy saving
7. Guest preferences
Are Connected
Are time conscious
Are demanding
Are more heath conscious
8.Relationship Marketing
Technology threats
It is estimated that 89 percent of Wi-Fi hotspots globally are not secure. The
increased use of smart phones and tablets to access unsecured public Wi-Fi
hotspots has dramatically increased the risk of threats. Travelers were three times
more likely to use a smartphone or tablet than a laptop to access an unsecured
hotspot in a shopping mall or tourist attraction, two times more likely in a
restaurant or coffee shop and one and a half times more likely at the airport.
The top three concerns cited when using public Wi-Fi are the possibility of
someone stealing personal information when engaging in banking or
financial sites (51 percent), making online purchases that require a credit or
debit card (51 percent) and making purchases using an account that has
payment information stored (45 percent). Travelers were less concerned
about using email or messaging services on public Wi-Fi (18 percent).
1. Consolidation (mergers, acquisition and JV
1. The combining of separate companies, functional areas, or product lines, into
a single oneDiffers from a merger in that a new entity is created in the
consolidation. CNN) -- The $900 million merger between KLM and Air France will
create the world's third largest airline, but how will it affect business travelers?
russels, Belgium (FT.com) -- Brussels competition officials have formally cleared
the global tie-up between British Airways, American Airlines and Spain's Iberia as
well as giving a green light to the merger between BA and Iberia, saying it would
not significantly impede competition in Europe. BA-Iberian merger
2. Partnership marketing is aligning yourself with other like-minded organizations
and businesses to reciprocally expose your brand to one another's customers and
provide added value to your own existing customersThe Retail Coffee Giant has
partnered with Bell to offer two hours of Free Wireless Internet Service per day
to anyone who opens a Starbucks-Bell Wireless Account at the Starbucks website.
Hospitality Key facts:
Approximately 8% of worldwide employment is in Travel & Tourism
303 million jobs worldwide are expected by 2020
The Travel & Tourism economy is expected to grow by 4.4% per
annum in real terms between 2010 and 2020
In 2012, the top 10 international hotel companies
will open 1,250 hotels
DOMESTIC PRODUCT (GDP)
Travel & Tourism’s contribution to GDP is forecast to grow steadily
by approximately 3.3% in 2012. Over the next ten years, the
industry’s total contribution to GDP is expected to rise by 4% per
year.
EMPLOYMENT
2011 98 MILLION ,2012 100.8 GROWTH
Travel & Tourism is predicted to account for
120 million jobs by 2022. (2% GWTH)
World Travel and Tourism Council (WTTC,
November 2011).
•Think ahead (Proactive vs reactive)
•Sets responsibilities and coordinates and
unifies efforts to reach goals
•Creates awareness of problem and
obstacles
•Identifies opportunities to increase
market share .
•Directed efforts
• Road Map.(regularly reviewed and
updates)
Marketing Plan :Benefits
The cornerstone of sales
Marketing Plan :
Fail to formulate
• Short term vs long term
• Time consuming
• Satisfying with the results
Steps of a Marketing Plan :
1. Conducting a market audit
2. Selecting a profitable target market
3. Positioning a property
4. Establishing a objective
5. Monitoring and evaluating marketing plan
1. Conducting a market audit
Market information system MIS
Systematically gather marketing intelligence
it consist of people, equipment and procedure
to analyze data in decision making .
•Internal Marketing source(POS data comment cards,
•External source of marketing information (Periodicals,
journals, partners)
•Property analysis
•Competitor analysis
•Marketplace analysis
1. Conducting a market audit
AREA STRENGTH WEAKNESSES RECOMMENDATIONS
Marketing Plan :
Property Analysis
Occupancy and activity analysis ?
An analysis of the property past present and potential
statistics and track sales history over three years to five
Years.
Month %occ Avg rm
rate
%OCC Avg rm rate %OCC Avg rm rate
2010 2011 2012
Marketing Plan :
Trend Analysis Food and Beverage
Month FOOD BEVERAG
E
FOOD BEVERAGE FOOD BEVERAGE
2010 2011 2012
Competition Analysis
Discover
•Profitable guest group not served
at your property.
•Some competitive benefit, cannot
be matched by your competitors
•Weakness on marketing
strategies where you can
capatalize
Differentiation
1.Competitive rate analysis (different customers)
2.Competitive fact sheet
•Number of rooms
•Locations
•Reputation /quality
•Meeting banquet spaces
•Restaurant and lounge
•Amenities
•Marketing size
•Customer mix
•Positioning
•Performance record
•3. Need Fulfillment by market segment/specific needs
Major reason for assessing the competition
Competitive Measures of Performance
•Market share (rooms night/total mkt rooms night sold
•Fair share ( rooms available/total mkt rooms available
•Revenue per available room (multiplying occupancy
percentage/average daily rate
Number of
rooms
Available
rooms
Percentage
occupancyRooms nIght sold Market share Fair share avg Daily rate Rev PAR
Your Property 300 109500 77% 83768 27% 26% 88 67.3204
Down Town
Hotel 454 165710 70% 115997 38% 39% 86 60.2
Airport Hotel 400 146000 75% 109500 35% 35% 85 63.75
Total 1154 421210 73% 309265 35% 35% 86.00 63.71
Marketing Plan :
Competition Analysis
NMBER
OF ROOMS
AVAILABLE
ROOMS
% OCCUPANCY ROOMS NIGHTS
SOLD
YOUR
PROPERTY
DOWNTOWN
HOTEL
AIIRPORT
HOTEL
MARKET SHARE % FARE SHARE%
YOUR PROPERTY
DOWNTOWN HOTEL
AIIRPORT HOTEL
NMBER
OF ROOMS
AVAILABLE
ROOMS
% OCCUPANCY ROOMS NIGHTS
SOLD
YOUR
PROPERTY
DOWNTOWN
HOTEL
AIIRPORT
HOTEL
Marketing Plan :
Rev par available room
Market Place Analysis
1. As much as possible about the market place or
environment in which property operated
2. Opportunities and effect on the business
3. /Problems and effect on the business
Step 2 : Selecting Profitable target
Markets
Geographic area
Who, what, When ,how ,where helps in effective use
of time and money
1. Segmentation by demographic, life style preferences
etc. Business / families
2. Guest MIX –Revenue Grid
Significance of the guest mix
1. Business travelers during the week leisure
vacationers on the weekends and local food
functions ,convention business and group tours
during shoulder and valley period
2. Also looking to the situation in crisis and economic
recessions in wedding business, government
travelers, sports team ,family reunion
Step 3 -Positioning
1. A certain image in the mind of the public
2. Positioning in the market place is crucial
3. Costly to reverse
1. Uniqueness can be expressed with positioning
statement : advantage to selected markets
2. Who are we, how property differ,area with less
revenue, target market each segment needs and
wants and any opportunity
NMBER
OF ROOMS
AVAILABLE
ROOMS
% OCCUPANCY ROOMS NIGHTS
SOLD
YOUR
PROPERTY
DOWNTOWN
HOTEL
AIIRPORT
HOTEL
Step 4: Establishing objective and plans
1. Which revenue centers would be benefit from
additional sales activity?
2. What are the peak periods/shoulder/valley?
3. What marketing segments can be reached
Priority given to each segment.
4. What can be done to ensure Increase sales in
each segment
Step 4: Establishing objective and plans
SMART
Specific
Measurable
Action- oriented
Realistic
Time specific
Other Market share specific
Developing and Implementing Action Plans
1. A descriptionof the types of business and
market segment to be solicited (Association)
2. Target customers (solicited name/address
etc)
3. Rates/Package/promotion/special plans
4. Objectives (verifiable)
5. Action steps
6. Budgeting
• Planning -implementation –ControlUndesirable deviation
Corrective action
Step 5: Monitoring and evaluating the
marketing plan
Step 5: Monitoring and evaluating the marketing plan
Budgeting Types
1. *Zero based
2. % of sales
3. Competitive parity
4. Affordable funds
*Dividing enterprise programs into packages
composed of goals ,activities and needed
resources and calculating the cost for each
package from base zero
Advantages in developing budget
• All expense are planned
• It helps prevent arbitrary budget cuts
• Increase accountability of marketing plan
• Road map that guides expenditure by market
segment
Step 5:: Monitoring and evaluating the marketing plan
• Record the number of rooms nights for each
segment
• Chart the number of restaurants covers sold
before and after advertising
• Survey (media planning Zip codes local)
• Results goals set by each
• Sales person 1. production of room nights by
market segment 2. business booked by peak,
shoulder, valley 3.repeat vs new
• Direct mail response/telephone inquiries
• Return mails coupons
• Specific task oriented
Problems not to achieve Goals
1. Lack of responsibility
2. Lack of communication
3. Lack of time
4. Lack of authority
5. Lack of appeal
6. Lack of control (outside factors)
7. Lack of realistic goals
CHAP -3 Managing the Marketing
and sales office
Role and responsibility
Hiring an training
Communication system
Automation
Evaluation marketing sales office
TRENDS EFFECTED
Consolidation
Efficiency
Bottom-line
NH Hotels are one of largest hotel chains in Spain, created in 1978 by Antonio Catalán in
Pamplona. Due to rapid growth in 1988 NH Hotels were already one of the first hotel
chains in Spain with institutions in Madrid, Barcelona and Zaragoza. Hesperia has more
than 40 years of experience in the hotel sector. This company is formed by 7786 rooms
divided into 51 hotels around Spain, Andorra, London and Isla Margarita. Hesperia
hotels are urban, sun and beach and Resorts hotels. All the hotels that belong to this
company have an exclusive service, and a high quality ambience to make the customers
feel comfortable during their holidays.
Hesperia belongs to NH Hoteles since 2009, year in which they carried out the
merger between the two companies. Since the merger between NH and
Hesperia, NH is the biggest urban hotel chain in Spain.
SMALL usually handle all type of business modest staff GM /sales person
MIDSIZE sales person and director of sales
LARGE SIZE specialized sales staff more director s
ORGANIZATIONAL CHART
Three Key Management Positions Large properties
GENERAL MANAGER
DIRECTOR OF SALES
DIRECTOR MARKETING
SALES AND MARKETING ACTIVITIES
IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER
COMPLAINS
Three Key Management Positions mid size-small properties
GENERAL MANAGER
DIRECTOR OF SALES
SALES AND MARKETING ACTIVITIES
IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER
COMPLAINS
MARKETING-OUTSOURCE
Organizing marketing and sales
office
1. Property’s goals and objectives
2. Available outside assistance (travel agents,
chain referrals,reservation system
3. Tot al market potential and number of people
take advantage of that potential
4. Budget available for marketing and sales
1. Importance of first impression can not be
overstated.
2. Properly greeted by sales staff
3. Clean and well decor
4. Knowledgeable sales staff
Sales area
1. Professionalism
2. Ability to communicate
3. Intelligence
4. Ability to analyze
5. Motivation
6. Efficiency
7. Persistent
8. Empathy
9. Curiosity
RECRUITING AND HIRING Nine important aspects of sales person
Training need of Sales people
1. Property knowledge (property fact book
2. Standard operating procedures (SOPs)
3. Performance standards (timelines, target,
accounts profile)
4. Salesmanship
Managing Sales people
Evaluating
Compensating
Supplemental sales Staff : Regional and national sales offices
Regional for particular geographical areas for close
monitoring the chain operations
and national for the entire country
Independent Hotel representatives outsourcing-cost
effective
Does this rep represent any major competitors
Knows Target market
Needs Supervision or individual
Marketing Contacts/techniques
Satisfactory record
Trained
Cost vs. competitor
Interested in property
Marketing communication System
• HOLDING MEETINGS
WEEKLY STAFF/FUNCTION( new business, new booking
MONTHLY SALES MEETING (Tentative/Definite booking
MARKETING COMMITTEE( Ensure marketing plan
adequately covered all aspects )
ANNUAL/SEMIANNUAL(Brain storming)
Chapter Summary
• KEEPING SALES RECORDS AND FORMS
SALES CALL REPORT page 102 (Info about account)
BOOKING FORM page 103 ( process sold business)
LOST BUSINESS REPORT page 105 (cancelled or changed)
FUNCTION BOOK RESERVATION (centralized )
SHEET (BANQUET SPACE) page 106
GUEST ROOM CONTROL BOOK ( NUMBER OF GUEST
ROOMS (Tentative ,hold)
AUTOMATED VERSION ( function + Guest room)
Marketing communication System
ESTABLISHINGFILING SYSTEM
CATEGORIES
1. Alphabetical filing names/organization
2. Key word Alphabetical filing (organization) petroleum,
police etc
3. Numerical (numbers)
ELEMENTS OF FILING SYSTEM
Master card file
Everything like name ,address ,geographical area ,month of meeting ,
Follow-up required & decision makers
Account File
Client based. It contains all information and event in reverse chronological
order ,often color coded . Computerized
Trace File
That helps in reminding the dates and events ,Automated DELPHI
• BENEFITS OF AUTOMATION
1. Allows tedious task to be accomplish quickly and efficiently
2. Allows immediate access to sales information
3. Facilitate personalized mailing based on the data in their memory bank
4. Reduce the risk of human error
5. Store information helps in direct sales promotion or individual client based on zip
code desired time, area of interest and so on
6. Generating mailing list in a fraction of time
7. Enhance communications among properties ,greatly facilitating the sales efforts in
large hotel chains
ADDITIONAL APPLICATION OF AUTOMATION
• DATA BASE MARKETING
It stores data for establishing relationship and retaining guests .7-8 times
more expensive to acquire new guest than to retain existing one
• HOME BASED VIRTUAL OFFICE
• Lists, Reports, Analysis and Application
• YIELD MANAGEMENT
• REVENUE REALIZED ACTUAL SALES = YIELD
REVENUE POTENTIAL
• REVENUE MANAGEMENT
• Revenue centers, restaurant, recreation, additional booking, groups
• Maximize profits from each piece of hospitality from each business
• Things should be considered when evaluating a marketing and sales staff
1. Does everyone understand that customers needs come first and roll of marketing and
sales organization is to fill those needs
2. Does everyone understand marketing plan
3. Does everyone understand property, competition and market place
4. Does sales person have clear understanding of their goals, submit weekly plan
traced and follow up
4. Proper maintenance and security of account file to be traced and followed up
5. Marketing and sales office in place. (training, monitoring SOPs etc)
• PERSONEL SALES
Topic to be discussed
• TYPES-sales call
• PROSPECTING
• PRESENTATION SALES
CALL(5 STEPS)
• KEY ACCOUNT
MANAGEMENT
CHAPTER--- 4
TYPES
• Cold calls (The objective is to get
information. Generally little is known
about the person to call)
• Public relation calls (service calls on
companies already clients for good will )
• Presentation calls(appointments
calls/meeting decision makers etc)
• Inside calls (walk-in inquiring /tour
operators ,travel agents specially visit
during peak hours )
• PROSPECTING:
Identifying potential and future clients
• Sources:
• Referrals(satisfied customers are excellent leads)
• Other Departments within large corporations.
• Local organizations and companies(business directories, chambers of
• commerce, industry reports,
• Community contacts (Department store manager/real estate people)
• Front desk personnel (individual guest to bring the business
• Other property employees (staff members)
• Competitors (lower rate/product service/promotion)
• Other sources (new papers)
• The national level
Intermediaries like travel agent ,tour operators etc
• Networking
• Exchange of visiting cards with potential civic and social
organization
• The internet
• Searching by names ,websites etc
• Qualifying Prospecting page 144
• 80/ 20 rule
1. Financial status
2. Need for product and service (special
service/competitors activity
3. Ability to purchase (budget imitation etc)
Preparing for the presentation sales Call
• Property research (property fact book,
features/services and benefits
• Competition research (sales method, pricing
strategies, promotion, sales staff size and
skills ,personel visit, Market intelligence)
• Client research (annual reports, trade
journals etc needs and wants, Empathetic )
• Features/services and Benefits
• Features :
We have electronic door locks
• Benefits
You will enjoying a feeling of security
Feature:
Our restaurant is just around the corner from
your office.
• You can walk our restaurant and avoid the long
delay
• Sales Kit
• All relevant information about the property,
points to be discussed
• Testimonials/endorsement letters, business
cards, visuals use of lap top /note Pad etc
• Projecting a professional Image
• Non verbal (Appearance ,hand shake, *territorial space, body language)
• Voice Quality (Voice tone)
• Listening skills (repeat in your own words after listening )
• Negotiation skills (two parties coming together to reach an
agreement for mutual benefit) win-win situation
Territorial space. cultural differences
4.Categories:
1. Public space Is a non threatening area .
Best for the selling group
2. Social Space: is a space related to desk
distance
3.Personel Space: depending upon a
person’s back ground
4.Intimate space: Arm distance
• Opening the sales call
• Introduction, Purpose, Benefit and Bridge
• Getting client involvement
• Questioning open ended ( statement base)/closed ended (y/n)
• Presenting your property
• Organization, 161 effective speaking (canned approach) use of visual aids
• Overcoming objections
• Exhibit 7 Price or rate/Product or service/Lack of interest (never provoke client
reaction )
• Closing and follow-up
• Test close ( draw a reaction of the client) /major close asking for sale)
• Phone call/letter /courtesy visits
• Presentation Sales call (5 STEP)
• Read and understand the above
check lists and write down the;
Importance & Benefits of each article
in your own words
Date of submission : 2ND JAN
ASSIGNMENT-2
• Planning Check list Exhibit 6 page 161
• Improving the sales productivity by achieving set goals and
objectives .Two key factors
• Time management activity
• Best utilization while travelling, waiting ,prioritization
• Key account management
• Ranking the accounts by profitability
CHAPTER 5
• Telephone sales
Telephone Etiquette
• Let the potential guest to
know how important
he/she is for the property.
• It is important because
unlike personnel calls you
cant read the body
language ,office decor,
handshake etc
TELEPHONE COMMUNICATION SKILLS
• Tone of voice verbal smile
• Pitch low
• Inflection avoid monotone
• Understandability without interruption
• Enthusiasm Add spirit
• How to make a good impression
• Adequate preparation(organized)
• Adequate time(no interruption)
• Direct contact(Dial personally)
• Courtesy (Respect others)
• Brevity (short)
• Timing(avoid late afternoon etc)
• Do not Leave message
• Avoid voice mail
• Avoid to take hold
• Sales calls
• Promotional calls
• Service calls
• Public relation calls
• Prospect and qualifying calls
decision making
• APPOINTMENT CALLS
• TYPES OF OUT
GOING CALLS
• 5 STEPS OF APPOINTMENT
CALLS
• Reaching the decision maker
• Opening the call
• The presentation
• Overcoming the objections
• Setting the appointment
• Telephone sales operations
• Telephone sales blitz(gather information
/task oriented_
• Telemarketing
• Programms
How to overcome the intermediaries
• Gate Keepers
• Secretaries
• Receptionist
Closing techniques :
• Asking for sales
• Forced choice questions
• Pause close
• Closing on an objections (counter with
benefits
• Series of minor agreements
• How to improve the listening
skills (the second half of
successful sales call)
• Limit talking (More
Prospect talking)
• Get involved(I know how
you feel)
• Ask Questions (Get the
views ,needs of the
prospect
Incoming calls
• Reservation
• Central reservation system
I. Helps on yield management
II. Measuring sale and marketing effort
III. Evaluate effectiveness
IV. Personalization
• Response to advertising
• Inquiries
• Telephone sales Blitz
• Usually target a particular
geographical area or market segment
and develop a plan for contacting as
many propels as we can within a
short period of time
• Tele marketing
• The most economical way to provide
person to person contact immediate
feedback and the flexibility of a
variety of approaches without the
cost of of personnel sales call.
Systematic way to use phone call with
a highly trained telemarketers
• In evaluating the programme
• 5% gives immediate feedback
• 20% generated appointment
• 60% wanted more information
PROGRESS TEST 1

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marketing for evil people

  • 3. . Hospitality means quality of receiving and treating guests and strangers in a warm and friendly manner. Derived from Latin word. HOSPEC Classical Ethic word VS Entertainment Hotels :First form of paid hospitality you could reserve a place to stay, eat, and relax .
  • 5. LEARNING OBJECTIVES •MANAGEMENT AND STAFF DEVELOPMENT •IMPLEMENTATION OF MARKETING AND SALES STRATEGIES •TRENDS OF HOSIPTALITY INDUSTRY •FUTURE MARKETING AND SALES EFFORTS
  • 6. Historical background •Chain vs. individual Properties •Mid 20th century 85% with property owned and only 5% with chain •Few resorts •High priced
  • 7. Evolution in Hospitality -1950…1970.. •Population growth •. •Longer life span 5.4% US POPULTAION to 8.9% 65+ •Improved incomes (two income) •Increased Leisure time •Expended highway system •Development of suburbs •Increased air travel •Convention center expansion Mature / World Way II Generation (40,267,984) – people born before 1946 • Baby Boomers (81,489,445) – people born between 1946 and 1965 • Generation X (61,032,705) – people born between 1966 and 1980 • Generation Y / Millenials (85,405,385) – people born between 1981 and 2000
  • 9. What do these factors have to do with hospitality marketing and sales? CHALLENGES •To cope with : •Meeting the demand of the road travelers by with the development of chain properties Holiday inn and Howard johnson •(standardized their design ,amenities for easy recognitions •Air port hotels for business and leisure •Hotel Websites •Present and future trends continue to influence the business
  • 10. Case of fast food restaurant • During the lunch at fast food restaurant you decide to use drive thru and order a cheese burger ,French fries and a larger coke. • First you get into a line of others cars ,place a order,pay your money and without a word of smile hands out a bag contains your order • You drive away once you pulling out a fry hoping for a crisp and instead it was soggy and luke warm. Surprisingly you got regular burger instead of cheese burger your ordered.Your lunch experience is bad.
  • 11. Case of fast food restaurant • Thus if the fast food restaurant has to hire more people to cook more burgers then quickly will recognize that the cost of being total focused on effectiveness,without efficiency will result in an unprofitable situation. •Let suppose fast food is committed to customer satisfaction.They advertise that if there is any dissatisfaction they will immediately replace the order free of charge and even deliver a new meal wherever you are.This increase customer satisfaction However, only customer satisfaction is not the ultimate goal. •Because to be a profitable business an organization must also be efficient .
  • 12. Marketing and sales are same ? Both are different and are interrelated to maximize revenue? A hotel may have greatest marketing plan but it is wasted if hotel does not have effective customer oriented sales staff A hotel can employ a great sales person but may waste time and money if target market and goals are not identified
  • 13. Marketing and sales? MARKETING: broader scope than sales IS THE STUDY AND MANAGEMENT OF THE EXCHANGE PROCESS .IT INVOLVES THOSE THINGS THAT PROPERTY WILL DO TO SELECT A TARGET MARKET AND STIMULATE OR ALTER THE MARKET DEMAND FOR THE PROPERTY’S SERVICES. Focus on profitability OTHER ELEMENTS RESEARCH VARIABLES (EXTERNAL VS INTERNAL ),ACTION STRATEGIES,ADVERTISING,PUBLICITY & SALES PROMOTION & MONITORING
  • 14. SALES: DIRECT EFFORT TO SELL THE PROPERTY BY; Personel sales call, Tele-communications and mailing. MODERN CONCEPT How to produce customer satisfaction ,analyze sales data, measures market potential ,gather market intelligence and develop marketing strategies and plans Marketing and sales?
  • 16. Three Key Management Positions Large properties GENERAL MANAGER DIRECTOR OF SALES DIRECTOR MARKETING SALES AND MARKETING ACTIVITIES IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER COMPLAINS
  • 17. Three Key Management Positions mid size-small properties GENERAL MANAGER DIRECTOR OF SALES SALES AND MARKETING ACTIVITIES IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER COMPLAINS MARKETING-OUTSOURCE
  • 18. • 1.Innermost contains the focal point the consumer • 2.Middle circle marketing mix (controllable variables) • 3. Outer determines the uncontrollable MARKETING MIX by Borden and Mc Carthy Revised by Booms and Bitner by adding 3 more Ps •People •Physical evidence •Processes
  • 19. 1. Developing a product –service mix based on wants and needs of the target market 2. Determining the most appropriate channels or ways (place) to reach the market 3. Determining promotion and other communication strategies including sales advertising and public relation and informing market of the property’s producer service 4. Establishing a price rate mix that is competitive and will ensure fair return of the property while providing value for the guest INTERACTION OF MARKETING MIX
  • 21. Some difficulties • includes fixed nature guest room cannot be suite convention center cant be a golf course etc. • Services (standardization ??/) Product –Service Mix • Product is expanded to product services guestrooms, banquet space, food and beverage • Services like check-in check outhouse keeping and parking. • It must be tailored to the needs and wants of the guest(Families/business) • Bespoke packages
  • 22. Place-Distribution Mix • Accessibility of the product to the consumers. Instead of product travelling to the consumers the consumer travel to the product. Some difficulties • Role of intermediaries ( travel agent tour operators )to ensure that product is available when and where is required in sufficient variety and quantity. • Product like guest room dining experience are neither shipped nor stored. The problem of warehousing and inventory control do not arise making distribution simpler for hospitality firms
  • 23. Promotion-Communication Mix Promotion is the way hotel and restaurant communicates to the target market and can involve advertising and direct marketing Promotion: It implies persuasion. Marketer does to their customers Communication: It is two way exchange. Market needs and wants .Marketer does with their customers. Which is more effective promotion or communication ?
  • 24. Price-Rate Mix • I f the guest rejects the property and services because of its price all previous efforts were wasted. Price rate determination is one of the most crucial decision .Charge different price to different buyers. Depending upon barganing position of buyers (Individual/meeting planner etc • It may affect the image .Suspicious about product quality. • Reputation . • New properties with low rates in order to build guest awareness and sacrificing immediate profits
  • 25. Peak In –season demand is high and so as price Valley Off season demand is lowest .Reduced rate may offer to Attract business Shoulder the period between peak and a valley and an excellent opportunity to build business Price-Rate Mix
  • 26. Challenges of Hospitality and Marketing sales Intangibility Cannot see and touch?? Benefit or experience. Credibility. Service guarantees (to build consumer confidence Perishability An unused guest room an empty restaurant seat etc represent business lost forever. It cannot be stocked or inventoried to sell later .Early check out charges fail to honour their reservations Inconsistency Service rendered by house keeper or food server may very greatly at different hotel and restaurant or even in the same outlet Inseparability Production and consumption are largely simultaneous with service .To compound the problem guest also contact with other guests and employee .That makes the other guest part of the product and often quality of services
  • 27. Trends shaping the future of Hospitality Marketing and Sales 1. Globalization (opportunities/challenges) Entering into new markets (Mcdonald/KFC) 2. Consolidation (mergers, acquisition and JV) The combining of separate companies, functional areas, or product lines, into a single One. While in JV remains separate (construction projects) $900 million merger between KLM and Air France will create the world's third largest airline Movenpick hotel acquired sherarton hotels a swiss upscale hotel chains 3. Partnership marketingis aligning yourself with other like-minded organizations and businesses to reciprocally expose your brand to one another's customers and provide added value to your own existing customers The Retail Coffee Giant has partnered with Bell to offer two hours of Free Wireless Internet Service per day to anyone who opens a Starbucks-Bell Wireless .Account at the Starbucks website
  • 28. 4. Niche marketing and branding (segments) Ramada ,Inter-contenental, Marriott ,budget hotels/extended stay 5. Technology automated digitalcheck in-check out/kiosk Smart card/laptop etc 1. Amadeus' Global Hotel Group and Newmarket’s products and services offerings is focused on delivering cloud-based enterprise solutions in the area of central reservations systems, property management systems, revenue management systems and e-Commerce platform 6.Enviornmental Awareness (recycle ,energy saving 7. Guest preferences Are Connected Are time conscious Are demanding Are more heath conscious 8.Relationship Marketing
  • 29. Technology threats It is estimated that 89 percent of Wi-Fi hotspots globally are not secure. The increased use of smart phones and tablets to access unsecured public Wi-Fi hotspots has dramatically increased the risk of threats. Travelers were three times more likely to use a smartphone or tablet than a laptop to access an unsecured hotspot in a shopping mall or tourist attraction, two times more likely in a restaurant or coffee shop and one and a half times more likely at the airport. The top three concerns cited when using public Wi-Fi are the possibility of someone stealing personal information when engaging in banking or financial sites (51 percent), making online purchases that require a credit or debit card (51 percent) and making purchases using an account that has payment information stored (45 percent). Travelers were less concerned about using email or messaging services on public Wi-Fi (18 percent).
  • 30. 1. Consolidation (mergers, acquisition and JV 1. The combining of separate companies, functional areas, or product lines, into a single oneDiffers from a merger in that a new entity is created in the consolidation. CNN) -- The $900 million merger between KLM and Air France will create the world's third largest airline, but how will it affect business travelers? russels, Belgium (FT.com) -- Brussels competition officials have formally cleared the global tie-up between British Airways, American Airlines and Spain's Iberia as well as giving a green light to the merger between BA and Iberia, saying it would not significantly impede competition in Europe. BA-Iberian merger 2. Partnership marketing is aligning yourself with other like-minded organizations and businesses to reciprocally expose your brand to one another's customers and provide added value to your own existing customersThe Retail Coffee Giant has partnered with Bell to offer two hours of Free Wireless Internet Service per day to anyone who opens a Starbucks-Bell Wireless Account at the Starbucks website.
  • 31. Hospitality Key facts: Approximately 8% of worldwide employment is in Travel & Tourism 303 million jobs worldwide are expected by 2020 The Travel & Tourism economy is expected to grow by 4.4% per annum in real terms between 2010 and 2020 In 2012, the top 10 international hotel companies will open 1,250 hotels DOMESTIC PRODUCT (GDP) Travel & Tourism’s contribution to GDP is forecast to grow steadily by approximately 3.3% in 2012. Over the next ten years, the industry’s total contribution to GDP is expected to rise by 4% per year. EMPLOYMENT 2011 98 MILLION ,2012 100.8 GROWTH Travel & Tourism is predicted to account for 120 million jobs by 2022. (2% GWTH) World Travel and Tourism Council (WTTC, November 2011).
  • 32.
  • 33. •Think ahead (Proactive vs reactive) •Sets responsibilities and coordinates and unifies efforts to reach goals •Creates awareness of problem and obstacles •Identifies opportunities to increase market share . •Directed efforts • Road Map.(regularly reviewed and updates) Marketing Plan :Benefits The cornerstone of sales
  • 34. Marketing Plan : Fail to formulate • Short term vs long term • Time consuming • Satisfying with the results
  • 35. Steps of a Marketing Plan : 1. Conducting a market audit 2. Selecting a profitable target market 3. Positioning a property 4. Establishing a objective 5. Monitoring and evaluating marketing plan
  • 36. 1. Conducting a market audit Market information system MIS Systematically gather marketing intelligence it consist of people, equipment and procedure to analyze data in decision making .
  • 37. •Internal Marketing source(POS data comment cards, •External source of marketing information (Periodicals, journals, partners) •Property analysis •Competitor analysis •Marketplace analysis 1. Conducting a market audit
  • 38. AREA STRENGTH WEAKNESSES RECOMMENDATIONS Marketing Plan : Property Analysis
  • 39. Occupancy and activity analysis ? An analysis of the property past present and potential statistics and track sales history over three years to five Years. Month %occ Avg rm rate %OCC Avg rm rate %OCC Avg rm rate 2010 2011 2012
  • 40. Marketing Plan : Trend Analysis Food and Beverage Month FOOD BEVERAG E FOOD BEVERAGE FOOD BEVERAGE 2010 2011 2012
  • 41. Competition Analysis Discover •Profitable guest group not served at your property. •Some competitive benefit, cannot be matched by your competitors •Weakness on marketing strategies where you can capatalize
  • 42. Differentiation 1.Competitive rate analysis (different customers) 2.Competitive fact sheet •Number of rooms •Locations •Reputation /quality •Meeting banquet spaces •Restaurant and lounge •Amenities •Marketing size •Customer mix •Positioning •Performance record •3. Need Fulfillment by market segment/specific needs Major reason for assessing the competition
  • 43. Competitive Measures of Performance •Market share (rooms night/total mkt rooms night sold •Fair share ( rooms available/total mkt rooms available •Revenue per available room (multiplying occupancy percentage/average daily rate Number of rooms Available rooms Percentage occupancyRooms nIght sold Market share Fair share avg Daily rate Rev PAR Your Property 300 109500 77% 83768 27% 26% 88 67.3204 Down Town Hotel 454 165710 70% 115997 38% 39% 86 60.2 Airport Hotel 400 146000 75% 109500 35% 35% 85 63.75 Total 1154 421210 73% 309265 35% 35% 86.00 63.71
  • 44. Marketing Plan : Competition Analysis NMBER OF ROOMS AVAILABLE ROOMS % OCCUPANCY ROOMS NIGHTS SOLD YOUR PROPERTY DOWNTOWN HOTEL AIIRPORT HOTEL MARKET SHARE % FARE SHARE% YOUR PROPERTY DOWNTOWN HOTEL AIIRPORT HOTEL
  • 45. NMBER OF ROOMS AVAILABLE ROOMS % OCCUPANCY ROOMS NIGHTS SOLD YOUR PROPERTY DOWNTOWN HOTEL AIIRPORT HOTEL Marketing Plan : Rev par available room
  • 46. Market Place Analysis 1. As much as possible about the market place or environment in which property operated 2. Opportunities and effect on the business 3. /Problems and effect on the business
  • 47. Step 2 : Selecting Profitable target Markets Geographic area Who, what, When ,how ,where helps in effective use of time and money 1. Segmentation by demographic, life style preferences etc. Business / families 2. Guest MIX –Revenue Grid
  • 48. Significance of the guest mix 1. Business travelers during the week leisure vacationers on the weekends and local food functions ,convention business and group tours during shoulder and valley period 2. Also looking to the situation in crisis and economic recessions in wedding business, government travelers, sports team ,family reunion
  • 49. Step 3 -Positioning 1. A certain image in the mind of the public 2. Positioning in the market place is crucial 3. Costly to reverse 1. Uniqueness can be expressed with positioning statement : advantage to selected markets 2. Who are we, how property differ,area with less revenue, target market each segment needs and wants and any opportunity
  • 50. NMBER OF ROOMS AVAILABLE ROOMS % OCCUPANCY ROOMS NIGHTS SOLD YOUR PROPERTY DOWNTOWN HOTEL AIIRPORT HOTEL
  • 51. Step 4: Establishing objective and plans 1. Which revenue centers would be benefit from additional sales activity? 2. What are the peak periods/shoulder/valley? 3. What marketing segments can be reached Priority given to each segment. 4. What can be done to ensure Increase sales in each segment
  • 52. Step 4: Establishing objective and plans SMART Specific Measurable Action- oriented Realistic Time specific Other Market share specific
  • 53. Developing and Implementing Action Plans 1. A descriptionof the types of business and market segment to be solicited (Association) 2. Target customers (solicited name/address etc) 3. Rates/Package/promotion/special plans 4. Objectives (verifiable) 5. Action steps 6. Budgeting
  • 54. • Planning -implementation –ControlUndesirable deviation Corrective action Step 5: Monitoring and evaluating the marketing plan
  • 55. Step 5: Monitoring and evaluating the marketing plan Budgeting Types 1. *Zero based 2. % of sales 3. Competitive parity 4. Affordable funds *Dividing enterprise programs into packages composed of goals ,activities and needed resources and calculating the cost for each package from base zero
  • 56. Advantages in developing budget • All expense are planned • It helps prevent arbitrary budget cuts • Increase accountability of marketing plan • Road map that guides expenditure by market segment
  • 57. Step 5:: Monitoring and evaluating the marketing plan • Record the number of rooms nights for each segment • Chart the number of restaurants covers sold before and after advertising • Survey (media planning Zip codes local) • Results goals set by each • Sales person 1. production of room nights by market segment 2. business booked by peak, shoulder, valley 3.repeat vs new • Direct mail response/telephone inquiries • Return mails coupons • Specific task oriented
  • 58. Problems not to achieve Goals 1. Lack of responsibility 2. Lack of communication 3. Lack of time 4. Lack of authority 5. Lack of appeal 6. Lack of control (outside factors) 7. Lack of realistic goals
  • 59. CHAP -3 Managing the Marketing and sales office Role and responsibility Hiring an training Communication system Automation Evaluation marketing sales office
  • 60. TRENDS EFFECTED Consolidation Efficiency Bottom-line NH Hotels are one of largest hotel chains in Spain, created in 1978 by Antonio Catalán in Pamplona. Due to rapid growth in 1988 NH Hotels were already one of the first hotel chains in Spain with institutions in Madrid, Barcelona and Zaragoza. Hesperia has more than 40 years of experience in the hotel sector. This company is formed by 7786 rooms divided into 51 hotels around Spain, Andorra, London and Isla Margarita. Hesperia hotels are urban, sun and beach and Resorts hotels. All the hotels that belong to this company have an exclusive service, and a high quality ambience to make the customers feel comfortable during their holidays. Hesperia belongs to NH Hoteles since 2009, year in which they carried out the merger between the two companies. Since the merger between NH and Hesperia, NH is the biggest urban hotel chain in Spain.
  • 61. SMALL usually handle all type of business modest staff GM /sales person MIDSIZE sales person and director of sales LARGE SIZE specialized sales staff more director s ORGANIZATIONAL CHART
  • 62. Three Key Management Positions Large properties GENERAL MANAGER DIRECTOR OF SALES DIRECTOR MARKETING SALES AND MARKETING ACTIVITIES IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER COMPLAINS
  • 63. Three Key Management Positions mid size-small properties GENERAL MANAGER DIRECTOR OF SALES SALES AND MARKETING ACTIVITIES IMPLEMENTING MARKETING STRATEGIES/SATISFYING CUSTOMER COMPLAINS MARKETING-OUTSOURCE
  • 64. Organizing marketing and sales office 1. Property’s goals and objectives 2. Available outside assistance (travel agents, chain referrals,reservation system 3. Tot al market potential and number of people take advantage of that potential 4. Budget available for marketing and sales
  • 65. 1. Importance of first impression can not be overstated. 2. Properly greeted by sales staff 3. Clean and well decor 4. Knowledgeable sales staff Sales area
  • 66. 1. Professionalism 2. Ability to communicate 3. Intelligence 4. Ability to analyze 5. Motivation 6. Efficiency 7. Persistent 8. Empathy 9. Curiosity RECRUITING AND HIRING Nine important aspects of sales person
  • 67. Training need of Sales people 1. Property knowledge (property fact book 2. Standard operating procedures (SOPs) 3. Performance standards (timelines, target, accounts profile) 4. Salesmanship
  • 69. Supplemental sales Staff : Regional and national sales offices Regional for particular geographical areas for close monitoring the chain operations and national for the entire country
  • 70. Independent Hotel representatives outsourcing-cost effective Does this rep represent any major competitors Knows Target market Needs Supervision or individual Marketing Contacts/techniques Satisfactory record Trained Cost vs. competitor Interested in property
  • 71. Marketing communication System • HOLDING MEETINGS WEEKLY STAFF/FUNCTION( new business, new booking MONTHLY SALES MEETING (Tentative/Definite booking MARKETING COMMITTEE( Ensure marketing plan adequately covered all aspects ) ANNUAL/SEMIANNUAL(Brain storming)
  • 73. • KEEPING SALES RECORDS AND FORMS SALES CALL REPORT page 102 (Info about account) BOOKING FORM page 103 ( process sold business) LOST BUSINESS REPORT page 105 (cancelled or changed) FUNCTION BOOK RESERVATION (centralized ) SHEET (BANQUET SPACE) page 106 GUEST ROOM CONTROL BOOK ( NUMBER OF GUEST ROOMS (Tentative ,hold) AUTOMATED VERSION ( function + Guest room) Marketing communication System
  • 74. ESTABLISHINGFILING SYSTEM CATEGORIES 1. Alphabetical filing names/organization 2. Key word Alphabetical filing (organization) petroleum, police etc 3. Numerical (numbers)
  • 75. ELEMENTS OF FILING SYSTEM Master card file Everything like name ,address ,geographical area ,month of meeting , Follow-up required & decision makers Account File Client based. It contains all information and event in reverse chronological order ,often color coded . Computerized Trace File That helps in reminding the dates and events ,Automated DELPHI
  • 76. • BENEFITS OF AUTOMATION 1. Allows tedious task to be accomplish quickly and efficiently 2. Allows immediate access to sales information 3. Facilitate personalized mailing based on the data in their memory bank 4. Reduce the risk of human error 5. Store information helps in direct sales promotion or individual client based on zip code desired time, area of interest and so on 6. Generating mailing list in a fraction of time 7. Enhance communications among properties ,greatly facilitating the sales efforts in large hotel chains
  • 77. ADDITIONAL APPLICATION OF AUTOMATION • DATA BASE MARKETING It stores data for establishing relationship and retaining guests .7-8 times more expensive to acquire new guest than to retain existing one • HOME BASED VIRTUAL OFFICE • Lists, Reports, Analysis and Application
  • 78. • YIELD MANAGEMENT • REVENUE REALIZED ACTUAL SALES = YIELD REVENUE POTENTIAL • REVENUE MANAGEMENT • Revenue centers, restaurant, recreation, additional booking, groups • Maximize profits from each piece of hospitality from each business
  • 79. • Things should be considered when evaluating a marketing and sales staff 1. Does everyone understand that customers needs come first and roll of marketing and sales organization is to fill those needs 2. Does everyone understand marketing plan 3. Does everyone understand property, competition and market place 4. Does sales person have clear understanding of their goals, submit weekly plan traced and follow up 4. Proper maintenance and security of account file to be traced and followed up 5. Marketing and sales office in place. (training, monitoring SOPs etc)
  • 80. • PERSONEL SALES Topic to be discussed • TYPES-sales call • PROSPECTING • PRESENTATION SALES CALL(5 STEPS) • KEY ACCOUNT MANAGEMENT CHAPTER--- 4
  • 81. TYPES • Cold calls (The objective is to get information. Generally little is known about the person to call) • Public relation calls (service calls on companies already clients for good will ) • Presentation calls(appointments calls/meeting decision makers etc) • Inside calls (walk-in inquiring /tour operators ,travel agents specially visit during peak hours )
  • 82. • PROSPECTING: Identifying potential and future clients • Sources: • Referrals(satisfied customers are excellent leads) • Other Departments within large corporations. • Local organizations and companies(business directories, chambers of • commerce, industry reports, • Community contacts (Department store manager/real estate people) • Front desk personnel (individual guest to bring the business • Other property employees (staff members) • Competitors (lower rate/product service/promotion) • Other sources (new papers)
  • 83. • The national level Intermediaries like travel agent ,tour operators etc • Networking • Exchange of visiting cards with potential civic and social organization • The internet • Searching by names ,websites etc
  • 84. • Qualifying Prospecting page 144 • 80/ 20 rule 1. Financial status 2. Need for product and service (special service/competitors activity 3. Ability to purchase (budget imitation etc)
  • 85. Preparing for the presentation sales Call • Property research (property fact book, features/services and benefits • Competition research (sales method, pricing strategies, promotion, sales staff size and skills ,personel visit, Market intelligence) • Client research (annual reports, trade journals etc needs and wants, Empathetic )
  • 86. • Features/services and Benefits • Features : We have electronic door locks • Benefits You will enjoying a feeling of security Feature: Our restaurant is just around the corner from your office. • You can walk our restaurant and avoid the long delay
  • 87. • Sales Kit • All relevant information about the property, points to be discussed • Testimonials/endorsement letters, business cards, visuals use of lap top /note Pad etc
  • 88. • Projecting a professional Image • Non verbal (Appearance ,hand shake, *territorial space, body language) • Voice Quality (Voice tone) • Listening skills (repeat in your own words after listening ) • Negotiation skills (two parties coming together to reach an agreement for mutual benefit) win-win situation
  • 89. Territorial space. cultural differences 4.Categories: 1. Public space Is a non threatening area . Best for the selling group 2. Social Space: is a space related to desk distance 3.Personel Space: depending upon a person’s back ground 4.Intimate space: Arm distance
  • 90. • Opening the sales call • Introduction, Purpose, Benefit and Bridge • Getting client involvement • Questioning open ended ( statement base)/closed ended (y/n) • Presenting your property • Organization, 161 effective speaking (canned approach) use of visual aids • Overcoming objections • Exhibit 7 Price or rate/Product or service/Lack of interest (never provoke client reaction ) • Closing and follow-up • Test close ( draw a reaction of the client) /major close asking for sale) • Phone call/letter /courtesy visits • Presentation Sales call (5 STEP)
  • 91. • Read and understand the above check lists and write down the; Importance & Benefits of each article in your own words Date of submission : 2ND JAN ASSIGNMENT-2 • Planning Check list Exhibit 6 page 161
  • 92. • Improving the sales productivity by achieving set goals and objectives .Two key factors • Time management activity • Best utilization while travelling, waiting ,prioritization • Key account management • Ranking the accounts by profitability
  • 94. Telephone Etiquette • Let the potential guest to know how important he/she is for the property. • It is important because unlike personnel calls you cant read the body language ,office decor, handshake etc
  • 95. TELEPHONE COMMUNICATION SKILLS • Tone of voice verbal smile • Pitch low • Inflection avoid monotone • Understandability without interruption • Enthusiasm Add spirit
  • 96. • How to make a good impression • Adequate preparation(organized) • Adequate time(no interruption) • Direct contact(Dial personally) • Courtesy (Respect others) • Brevity (short) • Timing(avoid late afternoon etc) • Do not Leave message • Avoid voice mail • Avoid to take hold
  • 97. • Sales calls • Promotional calls • Service calls • Public relation calls • Prospect and qualifying calls decision making • APPOINTMENT CALLS • TYPES OF OUT GOING CALLS
  • 98. • 5 STEPS OF APPOINTMENT CALLS • Reaching the decision maker • Opening the call • The presentation • Overcoming the objections • Setting the appointment
  • 99. • Telephone sales operations • Telephone sales blitz(gather information /task oriented_ • Telemarketing • Programms
  • 100. How to overcome the intermediaries • Gate Keepers • Secretaries • Receptionist
  • 101. Closing techniques : • Asking for sales • Forced choice questions • Pause close • Closing on an objections (counter with benefits • Series of minor agreements
  • 102. • How to improve the listening skills (the second half of successful sales call) • Limit talking (More Prospect talking) • Get involved(I know how you feel) • Ask Questions (Get the views ,needs of the prospect
  • 103. Incoming calls • Reservation • Central reservation system I. Helps on yield management II. Measuring sale and marketing effort III. Evaluate effectiveness IV. Personalization • Response to advertising • Inquiries
  • 104. • Telephone sales Blitz • Usually target a particular geographical area or market segment and develop a plan for contacting as many propels as we can within a short period of time
  • 105. • Tele marketing • The most economical way to provide person to person contact immediate feedback and the flexibility of a variety of approaches without the cost of of personnel sales call. Systematic way to use phone call with a highly trained telemarketers • In evaluating the programme • 5% gives immediate feedback • 20% generated appointment • 60% wanted more information