TOURISM MARKETING

SUBNMITTED TO, Dr. MANOJ EDWARD

SUBMITTED BY,

ARANYA BHUVANADAS

FINNY JOHN

RESHMI M K

VIPIN UDAYAN

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QUESTIONS:

DESCRIBE THE BASICS OF MANAGING THE SALES FORCE, AND TELL HOW TO SET SALES FORCE STRATEGY, SALES FORCE SIZE AND SALES FORCE STRUCTURE-TERRITORIAL, PRODUCT, CUSTOMER OR COMPLEX

DISCUSS THE PRINCIPLES OFPERSONNEL SELLING PROCESS AND OUTLINE THE STEPS IN THE SELLING PROCESS

THE ROLE OF VARIOUS PROMOTIONAL TOOLS LIKE ADVERTISNG, PERSONAL SELLING, SALES PROMOTION AND PUBLIC RELARION AS APPLIED IN THE TRAVEL AND TOURIM INDUSTRY

EXPLAIN THE 5 IMPORTANT DECISIONS TO BE TAKEN IN DEVELOPING AND ADVERTISING PROGRAME

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DESCRIBE THE BASICS OF MANAGING THE SALES FORCE, AND TELL HOW TO SET SALES FORCE STRATEGY, SALES FORCE SIZE AND SALES FORCE STRUCTURE-TERRITORIAL, PRODUCT, CUSTOMER OR COMPLEX

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MANAGING THE SALES FORCE

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Successful sales managers come in all size, shapes, colors, and back-grounds. Hospitality sales management is neither a precise science nor a formula based work procedure. Nevertheless there are some functions and Procedures that have historically been associated with the manage_ment of a professional sales force. Successful long-run hospitality Sales requires far more professional outlook and approach.

SELECTING SALES STRATEGIES Sales success within the hospitality industry are not the result of a hit-and-run sales mentally. Success

depends on the developments of a excellent long run relationship with the clients or accounts

There are six general sales strategies. They are:

Prevent erosion of key account

Grow key accounts

Grow selected marginal accounts

Eliminate selected marginal accounts

Retain selected marginal accounts but provide lower-cost sales support

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PREVENT EROSION OF KEY ACCOUNTS

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It does little good to attract new customers if key customers are lost. Determine the reasons why key customers leave and initiate corrective Steps. Initiate and carefully manage programs that treat key customers as royalty. A single sales/service person may be assigned to work with only a handful of key accounts. Unless these accounts are provided highly personal service, the risk of loss to a competitor is great.

GROW KEY ACCOUNT:

Key accounts usually offer more sales potential than is currently Realized. Key accounts may split their business between several provider company's business.

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GROW SELECTED MARGINAL ACCOUTS:

There are currently marginal accounts for a variety of reasons. They Are:

o Experimenting or sampling your product of service. o Have received poor service in the past and therefore use your services only when necessaryo Account manager changes have resulted in splitting the business between various hospitality firms.o Comfortable with your service but competitors have acquired the bulk of their business through better follow up.

RETAIN SELECTED MARGINAL ACCOUNTS BUT PROVIDE LOWER-COST SALES SUPPORT:

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ELIMINATE SELECTED MARGINAL ACCOUNTS:

It is difficult to eliminate these customers due to an inability to identify them when the order of reservation is placed. A professional sales force has the responsibility to remove these customers from their list of prospects or active accounts, & refrain from future sales calls & promotions directed to them.

Many accounts represent infrequent purchases or low-yield business.

SALES FORCE STRUCTURE AND SIZE

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The diverse nature of the hospitality industry means that different sales force structure and size have evolved. The structure of a salesDepartments depends on the culture of the organisation, size of the Property , nature of the market, and type of hotel.

Sales force structure:

Territorial-structured sales force Product-structured sales force Market-structured sales force Customer-sructured sales force

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TERRITORIAL-STRUCTURED SALES FORCE:

Each sales representative is assigned an exclusive territory in which to represent the company’s full line.

MARKET-STRUCTURED SALES FORCE:

Company structure its sales force based on market segment. The Advantage of market specialization is that each sales force can become knowledgeable about specific market segmentation.

CUSTOMER-STRUCTURED SALES FORCE:

A cusomer structured sales force recognizes that specific customers exist who are critical to the success of the organization.

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COMPLEX-STRUCTURED SALES FORCE:

A large hotel might have a catering/banquet sales force(product) a convention or meeting sales force(market segment), a tour whole sale sales force(marketing intermediately), and a national accounts sales force(customer).

The Dalmahoy Golf for strong sales effort in the local market and for combination-structured sales force.

SALES FORCE SIZE

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Customers are grouped into size classes according to their annual sales volume.

The desirable call frequencies (number of sales calls on an account per year.

The number of accounts in each size class is multiplied by the corresponding call frequency to arrive at the total workload for the country in sales calls per year.

The average number of calls a sales representative can make per year is determined.

The number of sales representatives needed is determined by dividing the total annual calls required by the average calls made by a sales representative.

DISCUSS THE PRINCIPLES OF PERSONNEL SELLING PROCESS AND OUTLINE THE STEPS IN THE SELLING PROCESS

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Personal selling is an art. Effective sales persons have more than Instict. They are trained in tactics to achieve sales success.:Eight major aspects of personnel selling. They are:

Prospects and qualifying Pre-approach Approach Presentation and demonstration Negotiation Overcoming objectives Closing Follow-up/maintenance

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Prospects and qualifying

The first step in the selling process is too identify prospects Although the company Will try to supply leads, sales represen tatives need skill in developing their own.Leads can be developed in the many ways. They are:

Through call-ins Having a booth at appropriate travel or trade shows Participating in international travel missions Asking current customers for the names of prospects Cultivating other referral sources, such as suppliers, dealers,…. Through leads generated by the chain Joining organisations to which prospects belong Engaging in speaking and writing activities that will draw attention. Examine data source Using the telephone and mail to find leads

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Pre-approach:

The salesperson needs to learn as much as possible about the prospect company and its buyers. The salesperson should set allObjectives, which might be to qualify the prospect or gather Information, or to make immediate sale.

Approach:

The salesperson should know how to greet the buyer to get the relationship off to a good start. This involves the sales persons’sAppearance, the opening lines, and the follow-up remarks.The Opening line should be positive

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Presentation and demonstration:

The salesperson emphasizes customer benefits throughout, bringingIn product features as evidence of these benefits. A benefits is any Advantage, such as lover cost, less work or more profit for the Buyer. Company have developed 3 different styles of sales presentation:

o Canned approach: It is based on stimulus thinking. It is used for the right stimulus words, pictures,terms and actions.

o Formulated approach: It identify early the buyers needs and buying style and then uses a formulated approach to this type of buyer.

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o Need-satisfaction approach:

This approach starts with a search for the customers real needs by encouraging the customer to do most of the talking. The approach calls for good listening and problem-solving skills. The sales presentation can be demonstration aids such as Booklets, movies, slides etc…during the demonstration, the salesPerson can draw on 5 influence strategies.

Legitimacy Expertise Referent power Ingratiation Impression

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Negotiation: Many of business-to-business selling involves negotiation skills.The two parties need to reach agreement on the price and other terms of sales. Price is the most frequently negotiated issue include Quality of goods and services offered, purchase volume, riskTaking, and promotion.

Overcoming objectives:

Customers almost pose objections during the presentation or whenasked for the order. Their resistance can be psychological orLogical. Psychological resistance inculdes preferenece of Established hotel or airline, predetermined ideas, dislike of personsdecisions. Logical resistance include objections to the price, or Certain product or company characteristics

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Closing:

Sales persons need to know how to recognize closing signals from the buyer, including physical actions, statements, and questions. SalesPerson can use one of several closing techniques.

Follow-up/maintenance:

After the closing the sales person should complete any necessary details on delivery time, purchase terms, and other matters. Follow-up Or Foul-up is a slogan of most successful sales people. The sales person Should develop an account maintenance plan to make sure that the Customer is not forgotten or lost.

THE ROLE OF VARIOUS PROMOTIONAL TOOLS LIKE ADVERTISNG, PERSONAL SELLING, SALES PROMOTION AND PUBLIC RELARION AS APLLIED IN THE TRAVEL AND TOURIM INDUSTRY

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Personal selling• Most effective tool at certain stages of buying process• Personal interaction with two or more people• Observe buyer’s need and characteristics.• Selling relation to long term relation

Shortcomings:• Sales force requires a longer term company

commitment than ads.• Ads can be turned on and off , but sales force size

harder to vary• Company’s most expensive tool.

AdvertisingAdvertising’s public nature suggests:

Advertised product is standard and legitimate . Buyers know that purchasing the product will be publicly

accepted. Reach masses of geographically dispersed buyers at low

cost Repeat a message many times. Build a long term image for a product Stimulate quick sales

Shortcomings:

• It is impersonal• One way communication• Very costly (TV ads)

Sales promotion• A collection of incentive tools designed to stimulate quicker

or greater purchase of particular products or services by consumers

• Tools include coupons, contests, cents off deals, premiums..

• Attract consumers attention and provide info.• Offer strong incentive to purchase by providing

inducements.• It says “ buy it now”- create stronger and quicker response.• Used to dramatize product offers and to boost sagging

sales• Usually short lived• Not effective in building long run brand preference

Public relations• PR includes a variety of programs to promote or protect a

companies image or individual products.• Believability factor.• News stories, features, • Reach many prospects who avoid salesperson and ads as

news rather than sales directed communication.

Infomercials• It’s a new addition to the promotion mix.• Hybrid b/w advertising and public relation• Provide stories on video tape for use on television.

Eg: tele brand shows

EXPLAIN THE 5 IMPORTANT DECISIONS TO BE TAKEN IN DEVELOPING AND ADVERTISING PROGRAME

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Advertising is any paid form nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor.

The hospitality and travel industries spend billions of dollars on advertising.

• Cendant corporation• McDonald’s corp.• Yum brands• Burger King• Doctor’s Associates• Wendy’s International etc.

Marketing management must make 5 important decisions in developing an advertising program.

1. SETTING THE OBJECTIVE.2. SETTING THE ADVERTISING BUDGET.3. MESSAGE DECISIONS.4. MEDIA DECISIONS.5. CAMPAIGN EVALUATION.

1. SETTING THE OBJECTIVE

The first step in developing an advertising program is to set advertising objectives. The objectives should be based on information about the target market, positioning, and marketing mix.

The advertising objectives can be classified by their aim:

• Informative advertising.• Persuasive advertising.• Reminder advertising.

2. SETTING THE ADVERTISING BUDGET

After determining advertising objectives, a company can establish an advertising budget for each product. The role of advertising is to affect demand for a product. The advertising budget also has some specific factors that should be considered when setting a budget:

• Stage in the product life cycle.• Competition and clutter.• Market share.• Advertising frequency.• Product differentiation.

3. MESSAGE DECISIONS

It is the third decision in the advertising management process. Creative advertising messages can be more important than the number of dollars spent. Advertising can succeed only if its message gains attention and communicates well. For developing a creative strategy requires three message steps:

1. Message Generation.2. Message Evaluation and Selection.3. Message Execution.

4. MEDIA DECISIONS

The fourth step is to choose the media to carry the message. The major steps in media selection are

1. Deciding on Reach, Frequency, and Impact.2. Choosing among major media types.3. Selecting specific media vehicles.4. Deciding on media timings.

5. CAMPAIGN EVALUATION

Managers of advertising programs should regularly evaluate 2 effects of advertising. They are:

1.Measuring the communication effect.

2.Measuring the sales effect.

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