©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Chapter 16 Professional Sales

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens “Good listeners generally make more sales than good talkers” - B.C. Holwick ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Achieving Sales-Force Objectives Sales Volume Upselling and Second Chance Selling Market Share or Market Penetration Product-Specific Objectives ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Sales-Force Structure Territorial – size, shape Market-Segment Market-Channel Customer Combination ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and 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. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens What Makes a Good Sales Rep? Honest Reliable Knowledgeable Helpful Risk taking Powerful sense of mission Problem-solving bent Care for the customer Careful planning Empathy Ego drive ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Recruiting 3 models for recruiting –Batch process –Only as needed –Always recruit ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Training 3 types of training –Product/service training –Policies, procedures, and planning training –Sales techniques training ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Selecting Sales Strategies 1.Prevent erosion of key accounts 2.Grow key accounts 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 ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Principles of Personal Selling Prospecting and Qualifying Preapproach Approach Presentation and Demonstration Negotiation Overcoming Objections Closing Follow-up/ Maintenance ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Presentation and Demonstration 5 influence strategies –Legitimacy –Expertise –Referent Power –Ingratiation –Impression ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Motivating Professional Sales Staff Compensation –Straight Salary –Straight Commission –Combination Salary and Commission Supplementary Motivators –Sales Meetings –Sales Contests ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Evaluation and Control of a Profession Sales Force Sales Quotas Sales Norms Time Management Tools –Call schedules ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Best Practices Ruth Fertel of Ruth Chris Steak House Harrah’s Cherokee Total Rewards program ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Key Terms Allocating Communicating Information gathering Prospecting ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens Key Terms Selling Servicing Targeting ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ Kotler, Bowen, and Makens