Transcript Chapter 17
Chapter 17 Professional Sales Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 1 What is Personal Selling? Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether: face to face, by telephone, through video conferencing, or by other means. Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 2 Classification of Sales Positions • Deliverer – delivers products takes reorders • Order taker – Handles existing demand • Missionary – Creates goodwill and future business • Technician – Has technical knowledge that is required to sell product – for example software systems • Demand creator – Creates demand Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 3 Tasks Performed By Salespeople • • • • • • • Prospecting Targeting Communicating Selling Servicing Information gathering Allocating Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 4 Sales-Force Objectives Upselling & second chance selling Product-specific objectives Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens Sales volume Increase market share or market penetration ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 5 Sales Force Structure • Territorial – Size – Shape • Market-segment – Example state associations • Market channels – Example – wholesalers, travel agents • Customer structured – Focus on key accounts • Combination of above Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 6 Salesforce Size • • • • • Sales volume Desired number of calls Number of accounts Numbers of calls per sales person Sales force size equals the the total annual number of calls divided by the annual call volume per salesperson Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 7 Factors influencing Size • • • • • Corporate/chain sales support Use of sales reps Team Selling Electronic Sales Travel intermediaries dependency Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 8 Other Sales Force Strategy and Structure Issues Outside Sales Force Travel to Call on Customers Commisioned Reps Salaried Sales Force Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens Inside Sales Force Conduct Business From Their Offices Via Phone or Buyer Visits Reservations TeleMarketing Or Internet ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 9 Relationship Marketing and Strategic Alliances • Relationship marketing: relationship marketing is based on the premise that important accounts need focused and continuous attention. Salespeople working with customers under relationship marketing must do more than call when they think customers might be ready to place orders. • A strategic alliance may involve sharing a combination of any of the following: confidences, database, market knowledge, planning, resources, risks, security, and technology. • Three types of strategic alliances have been characterized for the hotel industry: • (1) One-night stands. • (2) Affairs. • (3) I do’s. Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 10 Recruiting and Selecting What is the break-even point? Negative consequences of salesperson leaving; poor service, lost customers, corporate intelligence, image Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 11 Characteristics of a good salesperson Need to win, need to hold affection of others, energy, self-confidence, hunger for money, knowledge of industry, fit with industry, regards objection as a challenge, empathy, ego. Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 12 Training Sales Representatives • Know and identify with the company • Know company’s products • Know customers’ and competitors’ characteristics • Know how to make effective presentations • Know how to manage their activities Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 13 Selecting Sales Strategies • • • • • 1. Prevent erosion of key accounts. 2. Grow key accounts: keep priorities in order. 3. Grow selected marginal accounts. 4. Eliminate selected marginal accounts. 5. Retain selected marginal accounts but provide lower-cost sales support. • 6. Obtain new business from selected prospects. Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 14 Steps in the Selling Process Prospecting & Qualifying Salesperson Identifies Qualified Potential Customers. Process of Identifying Good Prospects and Screening Out Poor Ones Preapproach Salesperson Learns as Much as Possible About a Prospective Customer Before Making a Sales Call. Approach Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start. Presentation and Demonstration Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach. Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 15 Steps in the Selling Process cont. Negotiation The two parties need to reach agreement on the price and other terms of sale Overcoming Objections Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying. Closing Salesperson Asks the Customer for an Order. Follow-Up Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business. Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 16 Motivating Sales Representatives • Sales managers must be able to convince salespeople that they can sell more by working harder or by being trained to work smarter. • Sales managers must be able to convince salespeople that the rewards for better performance are worth the extra effort. Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 17 Compensating Salespeople To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements Fixed Amount Variable Amount Expense Allowance Usually a Salary Usually Commissions Or Bonuses For Job Related Expenses Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 18 Evaluating Sales Representatives • • • • • • • Formal evaluations What are the company’s expectations Salesperson-to-salesperson comparisons Current-to-past sales comparisons Customer-satisfaction evaluation Qualitative evaluation Salesforce compensation • salary, commission, bonus, fringe benefits, expense allowances, incentives Marketing for Hospitality and Tourism, 3e Philip Kotler, John Bowen, James Makens ©2003 Pearson Education, Inc. Upper Saddle River, NJ 07458 19