1. Providing Hospitality Products and Services
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2. Develop and maintain product / services and market knowledge
Objectives
Develop and maintain product / services and market knowledge
Encourage customers to use and buy products and services
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3. What is SELLING
The personal or impersonal process of assisting or persuading a prospective customer to buy a service Eg Hotel Room
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4. SELLING What is involved Serving Stimulating interest Communicating
Assisting and advising
Relationship building
Participation of employees at all levels
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5. What is MARKETING
The ability to identify and satisfy customers needs at a profit
Attracting customers and selling them products.
The process of creating, or making available products and services which satisfy needs and wants.
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6. Definitions A human need is a state of felt deprivation
Human wants are the form human needs take as shaped by culture and individual personality
Peoples wants become demands when backed by purchasing power
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7. Definitions continued
A product is anything that can be offered to the guests for use or consumption that might satisfy their want or need – Eg Room – satisfies the want of a good nights sleep
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8. Marketing process Market Research Market Strategy The Marketing Mix
Product
Promotion
Pricing
Place
Selling
The Marketing Mix
Market
evaluation
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9. Selling Marketing Emphasis on the customers wants Emphasis on product
Company or establishment first determines what products or services the customer wants or needs and then figures out how to profitably satisfy those needs
External, market orientation
Emphasis market (buyers) needs
Emphasis on product
Company first makes a product or service and then figures out how to sell the product/ service profitably
Internal, company orientation
Emphasis the establishments (sellers) needs
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10. Why is the Sales Function important to the establishment
Cash flow
Product turnover
Customer feedback
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11. Why is the Marketing function important to an establishment
Long term profitability
Structuring of the business
Maintaining a competitive edge in the market place
Product development
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12. Marketing strategies assist the establishment by:
Focusing the hotel’s marketing towards a desired future goal
Making more effective use of the marketing dollar
Ensuring that the marketing is consistent and coordinated
Preparing the business for anticipated changes
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13. Higher level of education Greater access to travel
Factors that contribute towards the changing nature of the consumer market market in the 1990’s
Higher level of education
Greater access to travel
Increased leisure time
Greater discernment by customer
Requirement of value for money
More choice available /more products
More competitive markets
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14. Maslows Hierachy of Needs
A persons behavior will be dominated by trying to satisfy the lowest need before moving to the next level
Each successive level in the hierachy must
be met before
moving on to the
next level.
Physiological needs
(Water, food shelter and rest).
Security / safety
(Freedom from fear)
Social/ group contact
(Group belonging)
Self-esteem-ego
Self-
actualisation
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15. Customers needs and expectations
Methods used to anticipate and assess customers need and expectations include:
Active listening
Identification and interpretation of verbal and non-verbal signals from customers
Questioning techniques, implicit and explicit
Observations.
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16. Factors that can influence customers expectations
Courtesy
Efficiency
Helpfulness
Personal and sincere interest
Reliability
Media influence
Confidence
Word of mouth
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17. Identification of KEY customer needs and wants
Help
Respect
Comfort
Empathy
Satisfaction
Support
Value
Friendliness
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18. The role of the Hospitality marketer must encompass the following
Ascertain the needs and wants of the customer
Create the product-service mix that satisfies those needs and wants
Promoting and selling the product-service mix in order to generate a level of income satisfactory to the management and stockholders of the establishment
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19. A SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
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20. SWOT considers the following
The product service mix of the establishment and it’s major competitors in these areas
Quality of the products, guest rooms, food and beverage
Quality of service
Location
Parking
Exterior and interior structure and décor
Meeting and conference facilities
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21. SWOT continued-product service mix
Price
Personnel
Image in the customers mind
The financial status of the organisation
Success of current marketing programs and activities
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22. SWOT considerations continued
SWOT considers the Market for the
establishment and the Competition
Profile of the current customer
Profile of the potential customer
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23. Broad environmental trends
SWOT considers
Broad environmental trends
Economic
Political
Social
Technological
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24. Areas of Strengths and Weakness
Finance
Cash flow Debt/equity
Level of assets Profitability
Capital available
Production
Plant & equipment
Quality control
Research & development
Production methods
Marketing
Customer base Promotion
Price structure Distribution
Location Product range
Personnel
Staff size Morale
Key personnel Leadership
Communication
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25. Areas of opportunities and threats
Competition
New competitors
Aggressive competitors
Economic
Interest rates Unemployment
Credit availability Inflation
Government Policy
Taxation Legislation
Imports Tariffs
Social
Social values Population changes
Changes to customer preferences
Technology
New technology Obsolescence
New products
Changing cost structures
Suppliers
Mergers Monopolies
Prices Distribution
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26. Definition of the term “Service” in relation to the Hospitality Industry
Intangibility
Perishability
Non-ownership
Inseparability
People-based viability (quality is buyer defined)
Variability
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27. Resources available to employees to promote Internal products and services include the following
Posters Menus
Signage Wine lists
Compendiums
Brochure displays
Tent cards
Flyers
In-house videos
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28. Types of External services, resources and their importance for promoting external products and services
Street maps
Travel desks
Brochures
Tourist information guides
Television information services
Telephone information services
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29. The hotel product and five variables
Price
Quality
Service
Style
Option
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30. Importance of Customer advice “interest generating techniques”
Question needs and wants Mutual interest
Startling statements Name dropping
Story Exhibit
Gift Sample
Compliment Statistics
Analogy Demonstration
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31. Customer advice results in sale
Knowledge of product/ service
Knowledge of clients needs
Knowledge of self image
Results in the sale $
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32. Selling and Customer relations skills
Sell yourself!!
Sell your
products
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33. Effective selling means a big difference to the employer
2 Rooms being upsold by receptionist per night
2 rooms per night x 5 nights
= 10 extra upsells per $30.00
= over $14,400 per annum extra
(48 weeks)
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34. Golden rules of selling
Sincerity
Helpfulness
Enthusiasm
Attentiveness
Friendliness
Product knowledge
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35. Be aware of the difference between features and benefits
Features are the
physical characteristic
of your product
Features are what you
are selling
Benefits
Benefits are why the
customers is there
People buy
good feelings
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36. Suggestive selling
Suggestive selling is the process of selling a suggestion to another person
Selling in these terms is persuading someone to purchase a product or service that they may otherwise not have bought
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37. Benefits of suggestive selling
Your customers feel pampered and that you have taken care to explain the value of certain products
The revenue per cover or per head is increased as a result of the extra sale
It is a challenge to you, the professional to satisy the hidden needs of your customer
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38. Suggestive selling means….
Making helpful suggestions to your customer
Not…
Don’t ask me
about the steak,
mate, I’m a
vegetarian
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39. What can be sold using suggestive selling
Special features/benefits – club lounge
Breakfast
Internet
RESTAURANT
Ports, liqueurs with coffee
Speciality breads
Various coffees
Side dishes-sauces, chips, salads etc
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40. Other types of selling defined
UP-SELLING
Selling a product of higher quality (focus on the benefits of the product)Inviting the customer to buy, rather than waiting for them to order
Switch selling
Offering an alternative product if unable to supply product that a guest requested-this is done to avoid giving the customer a straight refusal. Offer solutions-not problems
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41. Other types of selling continued
On-Selling
Think about the customers needs
On-selling is selling the garlic bread while people wait for their meal, selling a wine with the meal, a side salad with the main course, a liqueur with the coffee and so on.
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42. References
Customer relations, sales and marketing, Regency Publishing, 1998.
Sales and marketing awareness, TAFE NSW
Assessment package module 6641, 1996.
Wearne,N.(1994). Hospitality marketing: Hospitality Press. Melbourne.
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