Chapter 15: Professional Sales – Flashcards

7 major areas: 1. Nature of Hospitality Sales 2. Sales Force Objectives 3. Sales force structure and size 4. Organizing the sales department 5. recruiting and training a professional sales force 6. managing the sales force 7. managing strategic cline relationships

personal selling is the most effective tool available to a hospitality company. Sales reps perform 1 or more of the following tasks: prospecting: sales representatives find and cultivate new customers targeting: sales reps decide how to allocate their scarce time among prospect customers communicating: sales reps communicate information about the company's products and services selling: sales representatives know the art of salesmanship - approaching, presenting, answering objections and closing sales servicing: sales reps provide various services to the customers - consulting on their problems, rendering technical assistance, arranging financing, and expediting delivery information gathering: sales reps conduct market research and intelligence work and fill in call reports allocating: sales reps decide which customers to allocate scarce products during product shortages maintaining strategic partnerships: senior salespeople, including the sales manager, provide valuable planning assistance to clients

ADR Product type Management Company Set

the basis for average daily rate (ADR) clusters is that properties which are similar tend to sell for similar prices in a competitive market

properties may be grouped as luxury, resort, or in other ways such as the AAA diamond rating system or Mobil-star system. there are always going to be inequalities

professional management companies may have contacts with a variety of hotels operating under different flags. It is tempting to use these hotels as a competitive set, but this practice is subject to criticism

essential for 2 reasons: 1. objectives ensure that corporate goals are met. Goals may include revenue, market share, and improved corporate image 2. Objectives assist sales force members to plan and execute their personal sales programs. Objectives also help ensure that a salesperson's time and company-support resources such as personal computers are used efficiently

want to bring in as many customers as possible establish sales volume objectives by product lines to ensure a desired gross profit - this system is the basis for revenue management

the process of searching for new accounts

upgrade price and profit margins by selling higher-priced products such as suites through upselling

encourages cooperation and teamwork between departments, such as catering F&B, and sales

each sales rep is assigned an exclusive territory to represent the company's full line advantagesP: - clear definition of the salesperson's responsibilities -salesperson bears the credit or blame for all areas sales to the extent that personal selling makes a difference -incentive to cultivate local business and personal ties - travel expenses are relatively small because each sales rep travels within a small geographic organizaiton

can be designed to provide equal sales potential or equal workload -can easily value performance -customer density varies - designed to equalize workload

-formed by combining smaller units, such as countries or states until they add up to a territory - must take into account the location of natural barriers, transportation

specialize their sales force along market segment lines

sales force to serve different marketing channels like wholesalers, travel agencies, tour operators

sales reps decided how to allocate their scarce time among prospects and customers

recognizes that specific customers who are critical to the success of the organization exist -organized to serve these accounts through a key or national account structure

large accounts are often singled out for special attention and handling assigned to a specific individual or team if it has multiple accounts it is likely to organize a national account management (NAM) division -need to decide how to develop, manage, and evaluate a national account manager, how to organize structure, where to locate NAM in the org

sales force structured by product, market segment, market channel, and customer encourages the sales force to reach more available customers

identify the type and number of desired customers needs to support new marketing strategies Steps to establish sales force size: 1. customers are grouped into size classes according to their annual sales volume 2. the desirable call frequencies (# of sales call on an account per year) are established for each class 3. the number of accounts in each size is multiplied by the corresponding call frequency to arrive at the total workload for the country in sales calls per year 4. the average number of sales reps needed is determined by dividing the total annual calls required by the average calls made by a sales rep

used to reach the meeting/convention/conference marketed. hotels may not be in a position to search out and track this important market

used to serve foreign countries could substitute salaried sales staff in these markets

used to reach and retain key customers

members of the travel industry sometimes join sales/marketing efforts to reach selected market segments

electronic sales are becoming more popular effective when used as a marketing/sales mix including database marketing, telephone, personal sales

focuses on using the internet effectively to market your hotel, restaurant, or tourism product make reservations online purchasing ads online and search engine optimization (SEO) - message on the website is designed to catch the attention of search engines when customers type in key workds

creation of a website strategies: 1. conduct data mining of potential guest profiles through info collected from frequency reports 2. support the website through direct mail 3. prices on the website - best rate guarantee 4. advertise o google by "pay by click" 5. entice them to use call centers - give out freebies

1. technical support people - provide technical info and answers to customers' questions 2. sales assistants - clerical backup for the field salesperson - confirm appointments, credit checks, deliveries 3. telemarketing - use the phone, internet and social media to find new leads, qualify them, learn about their issues and sell them - customers don't like telemarketers need a database of their customers/clients reservation department - may speak with 80% of a company

1. commisioned reps - used id distant markets where the market potential does not justify employing a salaried sales person -represent several different properties they must: -select markets with care -visit the market personally -include the sales rep as part of the hotel's sales force 2. salaried sales force - sales force members are paid a salary plus benefits

2 or more persons working in concert toward a common sales objective -used for sales blitz, travel mission, charity promotions

relationship marketing - based on the premise that important accounts need focused and continuous attention -strategic alliances become formed

honest, reliable, knowledgable, and helpful - risk-taking, powerful sense of mission, problem solving -empathy - the ability to feel as the customer does -ego drive - a strong personal need to make the sale

product/service training - reservation systems, equipment, airplanes, cruise chips, delivery systems like menus policies, procedures, and planning training - all policies are understood, attention to detail sales technique training - learn sales basic (prospecting, sales call, sales dialog, follow-up) responsibility of the sales manager

1. poor listening skills 2. failure to concentrate on top priorities 3. lack of sufficient effort 4. inability to determine customer needs lack of planning for sales presentations 5. inadequate product/service knowledge

videos, all virtual and online- cuts costs

strong affinity for their subordinates, willing to learn, resonably bright

1. prevent erosion of key accounts - can't lose key customers 2. Grow key accounts - they have great sales potential that needs to be discovered 3. grow selected marginal accounts - can become key accounts if given sufficient time and service 4. eliminate selected accounts - the ones that result in losses, negative-yield customer should be eliminated 5. retain selected marginal accounts but provide lower-cost sales support - assign these low yield businesses to inside sales force - not worth the energy to make calls or have promotions 6. obtain new business from selected prospects - obtaining new accounts is costly and time consuming

trains sales people in high pressure selling techniques

trains salespeople in customer product solving - identifying needs

the step in which the salesperson or company identifies potential candidates

the step in which the salesperson meets the customer for the first time appearance, opening lines, follow-up

the sles step which the persons tells the "value-story" to the buyer showing how the company's offer solves the customer's problems encourage the customer to do a lot of the talking - listen to them

2 parties need to reach an agreement should always begin with rack rates, price concessions should only be given when vital upgrades, complimentary tickets, first class coffee breaks use bundled services when to negotiate? - when factors bear not only on price but also on quality and service - when business risks cannot be accurately predetermined have a strategy - commitment to an overall approach that has a good chance of achieving the negotiator's objectives - hard or soft strategy

the sales step in which the salesperson seek out, clarifies and overcomes any customer objections to buying

the sales step in which a salesperson asks the customer for an order

the sales step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business

sales reps know the art of salesmanship - approaching, presenting, answering objections and closing sale s

motivation -; effort -; performance -; rewards -; satisfaction

fixed amount (salary) - income stability variable amount (compensation, bonuses) - stimulate and reward effort expense allowances enable the sales rep to meet the expense involved - travel lodging

prescribe what their sales reps should sell during the year

salesperson-salesperson comparisons customer satisfaction evaluations qualitative evaluation of sales representatives

peer-peer sales networking - continuously contact members of the community

the use of online, mobile and social media to engage customers, build stronger relationship and augment sales performance more efficient and cost effective and productive can intimidate low-tech salespeople does not replace face-to-face selling for major clinets

sales reps provide various services to the customers: consulting on their problems, rendering technical assistance arranging financing, and expediting delivery