Transcript Sales-Force Objectives

Chapter 16
Professional
Sales
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
“Good listeners generally make
more sales than good talkers”
-B.C. Holwick
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Explain the role and nature of personal selling
and the role of the sales force
• Describe the basics of managing the sales
force
• Identify the key issues in recruiting, selecting,
training, and compensating salespeople
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Chapter Objectives
• Discuss supervising salespeople, including
directing, motivation, and evaluating
performance
• Apply the principles of personal selling
process, and outline the steps in the selling
process
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Hospitality Industry
Sales Positions
• Deliverer
• Order-taker or Customer Service
Representative
• Missionary – create goodwill and
educate users on the product or service
• Technician
• Demand Creator
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Nature of Hospitality Sales
• Prospecting – locating and cultivating new
customers
• Targeting – allocating scarce time among
prospects and customers
• Communicating – providing information
about the company’s products and services
• Selling – knowing the art of salesmanship
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Nature of Hospitality Sales
• Servicing – consulting on problems
and providing technical assistance
• Information gathering – conduct
market research and intelligence work
• Allocating – deciding which customers
to allocate scarce products to during
product shortages
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales-Force Objectives
• Objectives ensure that corporate goals
are met
• Goals include revenue, market share,
and improving corporate image among
others
• Objectives assist sales force members
to plan and execute their personal sales
programs
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales-Force Objectives
• Must be customer designed annually for
each company
• Established to support corporate goals
as well as marketing and sales
objectives
• Annual objectives may change in the
event of natural and other disasters
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Achieving Sales-Force
Objectives
•
•
•
•
Sales Volume
Upselling and Second Chance Selling
Market Share or Market Penetration
Product-Specific Objectives
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales Volume
• Common hospitality sales volume
measures include:
– Occupancy, passenger miles and total
covers
• Sales volume by selected segments
• Sales volume and price/margin mix
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Upselling and Second Chance
Selling
• Selling additional services or upgrading
rooms and food and beverage
• Encourages cooperation and teamwork
between departments
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Market Share
• A brand's share of the total sales of all
products within the product category in
which that brand competes
• Determined by dividing a brand's sales
volume by the total category sales
volume
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Market Penetration
• The percentage of the market owned by
a company as represented by share of
revenue
• Hotels are often held accountable for a
predetermined level of market
penetration
• What is STAR?
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Product-Specific Objectives
• Improving sales volume for specific
product lines
• Sales managers must be careful when
setting product-specific objectives that
they do not ignore other product line
members
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales-Force Structure
• Territorial – size, shape
• Market-Segment
• Market-Channel
• Customer
• Combination
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales-Force Size
• Grouped by annual sales volume
• Desired number of calls is established
for each group
• Total workload is determined
– Number of calls multiplied by the
number of accounts
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Sales-Force Size
• Average number of calls per sales
representative per year is determined
• Number of sales representatives is
determined
– Total annual calls required divided by
average annual calls per person
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Size of Hotel Sales Force
• Contributing Factors:
– Corporate/chain sales support
– Use of sales reps
– Team selling
– Electronic and telephone sales
– Travel intermediary dependency
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Organizing the Sales Department
• Inside Sales Force
– Technical support, sales assistants,
reservations department, telemarketers
• Field Sales Force
– Commissioned reps, salaried reps
• Team Sales
– Sales Blitz, travel mission, charity
promotions
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Relationship Marketing
• Relationship marketing is based on the
premise that important accounts need
focused and continuous attention
• The organization focuses equally on
managing both its customers and its
products
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Strategic Alliances
• Strategic alliances are a highly
developed form of relationship
marketing that are common between
vendor and buyer or between
noncompeting vendors and a common
buyer
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Strategic Alliances
• 3 types in the hotel industry
– One Night Stands – short term
opportunistic relations such as cross
advertising
– Affairs – medium-term tactical relationships
such as hotels participating in airline
frequent flyer programs
– I Do’s – long-term commitment which may
require equity investment from both parties
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Importance of Careful
Selection
• The cost of finding and training a new
salesperson plus the cost of lost sales
can be substantial, and a sales force
with many new people is generally less
productive
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
What Makes a Good Sales Rep?
•
•
•
•
•
•
Honest
Reliable
Knowledgeable
Helpful
Risk taking
Powerful sense of
mission
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
• Problem-solving
bent
• Care for the
customer
• Careful planning
• Empathy
• Ego drive
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Recruiting
• 3 models for recruiting
– Batch process
– Only as needed
– Always recruit
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Training
• 3 types of training
– Product/service training
– Policies, procedures, and planning training
– Sales techniques training
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Selecting Sales Strategies
1.
2.
3.
4.
5.
Prevent erosion of key accounts
Grow key accounts
Grow selected marginal accounts
Eliminate selected marginal accounts
Retain selected marginal accounts,
but provide lower-cost sales support
6. Obtain new business from selected
prospects
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Principles of Personal Selling
• Prospecting and
Qualifying
• Preapproach
• Approach
• Presentation and
Demonstration
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
• Negotiation
• Overcoming
Objections
• Closing
• Follow-up/
Maintenance
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Presentation and Demonstration
• 5 influence strategies
– Legitimacy
– Expertise
– Referent Power
– Ingratiation
– Impression
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Motivating Professional
Sales Staff
• Compensation
– Straight Salary
– Straight Commission
– Combination Salary and Commission
• Supplementary Motivators
– Sales Meetings
– Sales Contests
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens
Evaluation and Control of a
Profession Sales Force
• Sales Quotas
• Sales Norms
• Time Management Tools
– Call schedules
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens