Professional SalesProfessional Sales

Objective:Objective: Introducing Introducing personal selling in personal selling in tourism and hospitality. Special emphasis will tourism and hospitality. Special emphasis will

be given to Fam Trips. be given to Fam Trips.

Personal SellingPersonal Selling

Concerned with direct interaction Concerned with direct interaction between the seller and buyer.between the seller and buyer.

Highly effective form of communication.Highly effective form of communication. Offers chance for the seller to respond Offers chance for the seller to respond

to the individual needs of the to the individual needs of the customers, provide a tailored and customers, provide a tailored and flexible solution, answer questions, gain flexible solution, answer questions, gain feedback immediately, and adapt the feedback immediately, and adapt the message.message.

AdvantagesAdvantages

ability to close salesability to close sales ability to hold the customer’s attentionability to hold the customer’s attention immediate feedback and two-way immediate feedback and two-way

communicationscommunications presentations tailored to individual presentations tailored to individual

needsneeds ability to target customers preciselyability to target customers precisely ability to cultivate relationshipsability to cultivate relationships ability to get immediate actionability to get immediate action

DisadvantagesDisadvantages

high cost per contacthigh cost per contact inability to reach some customers as inability to reach some customers as

effectivelyeffectively

Functions of the Sales Functions of the Sales TeamTeam

Finding new customersFinding new customers Selling servicesSelling services CommunicatingCommunicating Representing the organizationRepresenting the organization Establishing and maintaining Establishing and maintaining

relationships with customers or relationships with customers or other stakeholdersother stakeholders

In the tourism and In the tourism and hospitality sector;hospitality sector; Due to nature of the industry, staff Due to nature of the industry, staff

responsibilities include a sales function. responsibilities include a sales function. Staff has the opportunity to make a sale, Staff has the opportunity to make a sale,

even if they are not part of the sales even if they are not part of the sales team.team.

Many staff has chance to ‘sell up’ or Many staff has chance to ‘sell up’ or ‘cross sell’.‘cross sell’.

Familiarization ‘fam’ trips by tour Familiarization ‘fam’ trips by tour operators and hospitality trade to agents operators and hospitality trade to agents have a major role in tourism. have a major role in tourism.

Role of familiarisation Role of familiarisation trips;trips; Familiarization trips are vital to overcome Familiarization trips are vital to overcome

the intangible nature of tourism services. the intangible nature of tourism services. They are quite common for intermediaries They are quite common for intermediaries

and travel press in tourism.and travel press in tourism. With the help of such trips, intermediaries With the help of such trips, intermediaries

can have first-hand information and can have first-hand information and experience regarding tourism destinations experience regarding tourism destinations and operations and then they act as opinion and operations and then they act as opinion leaders. leaders.

Relationships between the media and Relationships between the media and tourism firms and destinations result in tourism firms and destinations result in greater exposure. greater exposure.

Management of Management of Professional SalesProfessional Sales

In tourism and hospitality, regarding In tourism and hospitality, regarding personal selling, the following should be personal selling, the following should be considered;considered; Nature of hospitality salesNature of hospitality sales Sales force objectivesSales force objectives Sales force structure and sizeSales force structure and size Organizing the sales departmentOrganizing the sales department Recruiting and training a professional sales Recruiting and training a professional sales

forceforce Managing the sales forceManaging the sales force Managing strategic client relationshipsManaging strategic client relationships

Nature of Hospitality Nature of Hospitality SalesSales

Sales personnel function as the company’s Sales personnel function as the company’s personal link with its customers.personal link with its customers.

The cost is high but it is the most effective The cost is high but it is the most effective tool for hospitality firms since sales tool for hospitality firms since sales representatives perform important representatives perform important functions including;functions including; ProspectingProspecting; salespeople find and cultivate ; salespeople find and cultivate

new customers.new customers. TargetingTargeting; salespeople decide to whom to ; salespeople decide to whom to

spend their time. spend their time.

CommunicatingCommunicating; salespeople communicate ; salespeople communicate information between the company and the information between the company and the customers.customers.

SellingSelling; salespeople know how to ; salespeople know how to approach, present, answer objections and approach, present, answer objections and close sales.close sales.

ServicingServicing; salespeople provide a number ; salespeople provide a number of services to customers including of services to customers including consulting on their problems, providing consulting on their problems, providing technical assistance, arranging financing, technical assistance, arranging financing, expediting delivery.expediting delivery.

Information gatheringInformation gathering; salespeople do ; salespeople do market research and fill in call reports.market research and fill in call reports.

AllocatingAllocating; salespeople decide who to ; salespeople decide who to allocate scarce resources.allocate scarce resources.

Maintaining strategic partnershipMaintaining strategic partnership; senior ; senior salespeople including the sales manager salespeople including the sales manager provide planning assistance to clients. provide planning assistance to clients.

Today, rather than just concentrated on Today, rather than just concentrated on selling, sales people should focus on selling, sales people should focus on customer satisfaction and company customer satisfaction and company profits. profits.

They should know how to analyze sales They should know how to analyze sales data, measure market potential, gather data, measure market potential, gather market intelligence, develop marketing market intelligence, develop marketing strategies and proficient in sales tactics. strategies and proficient in sales tactics.

They should be knowledgeable about They should be knowledgeable about marketing (e.g. yield management) as marketing (e.g. yield management) as well as selling. well as selling.

Sales Force ObjectivesSales Force Objectives

Hospitality firms set objectives for Hospitality firms set objectives for their sales force. their sales force.

Setting objectives is important Setting objectives is important because they;because they; help companies reach their company help companies reach their company

goals. Goals include revenue, market goals. Goals include revenue, market share, improving corporate image, etc. share, improving corporate image, etc.

help the sales force to plan and execute help the sales force to plan and execute their sales programs. their sales programs.

Sales force objectives must be customer Sales force objectives must be customer designed annually. designed annually.

Annual marketing and sales objectives Annual marketing and sales objectives are broken down quarterly and monthly are broken down quarterly and monthly objectives.objectives.

These are further broken down by the These are further broken down by the sales force into personal objectives by sales force into personal objectives by day and week. day and week.

Sales managers are responsible to assign Sales managers are responsible to assign objectives to individual salespeople. objectives to individual salespeople.

Common sales objectives include;Common sales objectives include; Sales volume, upselling and second-chance Sales volume, upselling and second-chance

selling, market share or market penetration, selling, market share or market penetration, product-specific objectivesproduct-specific objectives..

Sales volumeSales volume; is measured in terms of ; is measured in terms of occupancy, passenger miles, total occupancy, passenger miles, total covers within tourism. They all mean covers within tourism. They all mean increasing number of customers. increasing number of customers. Emphasis on volume alone means price Emphasis on volume alone means price dicscounting, attracting undesirable dicscounting, attracting undesirable market segments, and cost cutting. market segments, and cost cutting. Sales volume by selected segments; Sales volume by selected segments;

establishing sales objectives by specific establishing sales objectives by specific market segment to improve revenue. market segment to improve revenue.

Sale volume and price/margin mix; Sale volume and price/margin mix; establishing sales volume objectives by establishing sales volume objectives by product lines to get the desired gross product lines to get the desired gross profit. It is the basis for revenue profit. It is the basis for revenue management.management.

Upselling and second-chance sellingUpselling and second-chance selling; ; selling higher-priced products such selling higher-priced products such as suite rooms through upselling. On as suite rooms through upselling. On the other hand, second-chance is the other hand, second-chance is about selling additional services to about selling additional services to clients who have already booked clients who have already booked some services such as a meeting some services such as a meeting room for 2 days. room for 2 days.

Market share or market penetrationMarket share or market penetration; ; compared to sales volume, less compared to sales volume, less important for most hospitalit important for most hospitalit operations. However, rather than operations. However, rather than the individual operations, corporate the individual operations, corporate marketing departments of a chain is marketing departments of a chain is likely to be concerned with market likely to be concerned with market share. share.

Product-specific objectivesProduct-specific objectives; ; occasionally sales force may be occasionally sales force may be given specific responsibility to given specific responsibility to improve sales volume for specific improve sales volume for specific product lines such as memberships. product lines such as memberships.

Sales Force Structure Sales Force Structure and Sizeand Size

Common sales force structures in Common sales force structures in hospitality include;hospitality include; Territorial-structured sales forceTerritorial-structured sales force Market-segment-structured sales forceMarket-segment-structured sales force Market-channel-structured sales forceMarket-channel-structured sales force Customer-structured (key accounts) sales Customer-structured (key accounts) sales

forceforce Combination-structured sales forceCombination-structured sales force

Sales force size is determined by Sales force size is determined by going through the following steps;going through the following steps;

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

The desirable call frequencies (per year) The desirable call frequencies (per year) are established for each class.are established for each class.

The number of accounts in each size class The number of accounts in each size class is multiplied by the corresponding call is multiplied by the corresponding call frequency to find out the total workload.frequency to find out the total workload.

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

The number of salespeople needed is The number of salespeople needed is determined. determined.

Organizing the Sales Organizing the Sales DepartmentDepartment

In hospitality, traditionally, departments are In hospitality, traditionally, departments are organized along functional lines. organized along functional lines.

Therefore, in a hotel, there may be a sales Therefore, in a hotel, there may be a sales department, a guest relations department, an department, a guest relations department, an advertising and public relations department, advertising and public relations department, but not a marketing department. but not a marketing department.

Recently, some hotels started to have sales Recently, some hotels started to have sales and marketing department. and marketing department.

A sales manager is responsible from sales and A sales manager is responsible from sales and marketing, although sales is often more marketing, although sales is often more emphasized. emphasized.

Today, there are two types of Today, there are two types of salespeople; inside sales force and a field salespeople; inside sales force and a field sales force.sales force. Inside salespeopleInside salespeople; there are three types; ; there are three types;

technical-support persons, sales assistants, technical-support persons, sales assistants, and telemarketers. Technical-support and telemarketers. Technical-support persons provide technical information and persons provide technical information and answers customer’s questions. Sales answers customer’s questions. Sales assistants provide clerical support to field assistants provide clerical support to field salespersons. They call ahead, confirm salespersons. They call ahead, confirm appointments, carry out credit checks, etc. appointments, carry out credit checks, etc. Telemarketers use the phone to find new Telemarketers use the phone to find new customers. They may call up to fifty customers. They may call up to fifty customers per day compared four or five customers per day compared four or five that an outside salesperson contacts.that an outside salesperson contacts.

Field sales forceField sales force; in hospitality, there ; in hospitality, there are different types of field sales force as are different types of field sales force as commissioned reps and salaried sales commissioned reps and salaried sales force. Commissioned sales reps are force. Commissioned sales reps are used for distant potential markets, since used for distant potential markets, since some may not justify to have a salaried some may not justify to have a salaried sales force. These reps may represent sales force. These reps may represent several different properties or chains. several different properties or chains. Salaried sales force are paid a salary Salaried sales force are paid a salary plus benefits. This one is the backbone plus benefits. This one is the backbone of the sales force. of the sales force.

Recruiting and TrainingRecruiting and Training

It is important to select the right It is important to select the right individuals for sales. Research showed individuals for sales. Research showed that top 27 percent of the sales force bring that top 27 percent of the sales force bring in over 52 percent of the sales. in over 52 percent of the sales.

In sales force, the following traits are In sales force, the following traits are important; risk taking, powerful sense of important; risk taking, powerful sense of mission, problem-solving, care for the mission, problem-solving, care for the customer, and careful planning. customer, and careful planning.

Among the most important traits, empathy Among the most important traits, empathy and ego drive (strong need to make the and ego drive (strong need to make the sale) comes. sale) comes.

The person should be also right for the The person should be also right for the corporate culture of the organization. corporate culture of the organization.

Especially new graduates with no Especially new graduates with no experience should be trained.experience should be trained.

However, sales training is not a onetime However, sales training is not a onetime process.process.

Sales force require training regarding;Sales force require training regarding; Product/service training Product/service training Policies, procedures, and planning trainingPolicies, procedures, and planning training Sales techniques trainingSales techniques training

Managing the Sales Managing the Sales ForceForce

Sales success depends on the development Sales success depends on the development of long-run relationships with clients or of long-run relationships with clients or accounts. accounts.

The 80/20 rule prevails within the hospitality The 80/20 rule prevails within the hospitality industry. Most of the business comes from a industry. Most of the business comes from a minority of the firm’s customers. They are minority of the firm’s customers. They are referred to as key, national or major referred to as key, national or major accounts.accounts.

Based on the concept of key customers, the Based on the concept of key customers, the following general strategies must be following general strategies must be followed by the sales force;followed by the sales force;

Six key Six key sales sales strategiesstrategies;; Preventing erosion of key accountsPreventing erosion of key accounts Growing key accountsGrowing key accounts Growing selected marginal accountsGrowing selected marginal accounts Eliminating selected marginal accountsEliminating selected marginal accounts Retaining selected marginal accounts Retaining selected marginal accounts

but providing lower-cost sales supportbut providing lower-cost sales support Obtaining new business from selected Obtaining new business from selected

prospectsprospects

Sales force tacticsSales force tactics,, in other words, in other words, these are the principles of personal these are the principles of personal selling. The ultimate purpose of a sales selling. The ultimate purpose of a sales force is to sell. Sales people are trained force is to sell. Sales people are trained in tactics to make a sale. Following are in tactics to make a sale. Following are the major tactics used in personal the major tactics used in personal selling;selling; Prospecting and qualifyingProspecting and qualifying PreapproachPreapproach ApproachApproach Presentation and demonstrationPresentation and demonstration NegotiationNegotiation Overcoming objectionsOvercoming objections ClosingClosing Follow-up/MaintenanceFollow-up/Maintenance

Motivating the sales forceMotivating the sales force; special ; special incentives can be given to the sales incentives can be given to the sales force to make them work at their best force to make them work at their best level. The following may be used;level. The following may be used; Sales force compensationSales force compensation Supplementary motivatorsSupplementary motivators

Evaluation and control of the sales Evaluation and control of the sales forceforce; sales force should also be ; sales force should also be evaluated on their performance. The evaluated on their performance. The following may be used in evaluations;following may be used in evaluations; Sales quotas, time-and-duty analysis, Sales quotas, time-and-duty analysis,

cost/return effectiveness of trade shows, cost/return effectiveness of trade shows, formal evaluation of performance, other formal evaluation of performance, other control techniques (such as sales reports, control techniques (such as sales reports, customer complaints etc.). customer complaints etc.).

Managing Strategic Client Managing Strategic Client RelationshipsRelationships

Relationship marketingRelationship marketing; is based on ; is based on the idea that important accounts the idea that important accounts need focused and continuous need focused and continuous attention. Salespeople should attention. Salespeople should monitor key accounts, know their monitor key accounts, know their problems, be ready to serve, and problems, be ready to serve, and become part of the client’s team, become part of the client’s team, rather than just call when they think rather than just call when they think the client is ready to make an order. the client is ready to make an order.

Strategic alliancesStrategic alliances; are highly ; are highly developed from relationship marketing. developed from relationship marketing. They are relationships between They are relationships between interdependent parties who agree to interdependent parties who agree to cooperate but still keep their separate cooperate but still keep their separate identities. They may share databases, identities. They may share databases, market knowledge, resources, risks, market knowledge, resources, risks, technology. In hospitality, there are technology. In hospitality, there are three types of alliances;three types of alliances; One-night standsOne-night stands AffairsAffairs I dosI dos

SourcesSources

McCabe, S. (2009). Marketing McCabe, S. (2009). Marketing Communications in Tourism and Hospitality: Communications in Tourism and Hospitality: Concepts, Strategies and Cases. Butterworth-Concepts, Strategies and Cases. Butterworth-Heinemann: Oxford. Heinemann: Oxford.

Kotler, P.; Bowen, J. and Makens, J. (1999). Kotler, P.; Bowen, J. and Makens, J. (1999). Marketing for Hospitality and Tourism (2nd Marketing for Hospitality and Tourism (2nd ed.). Prentice Halled.). Prentice Hall: New Jersey.: New Jersey.

Kotler, P.; Bowen, J. and Makens, J. (Kotler, P.; Bowen, J. and Makens, J. (20102010). ). Marketing for Hospitality and Tourism (Marketing for Hospitality and Tourism (5th5th ed.). Prentice Halled.). Prentice Hall: New Jersey.: New Jersey.

Kotler, P. and Armstrong, G. (20Kotler, P. and Armstrong, G. (201010) Principles ) Principles of Marketing (1of Marketing (133th ed.). Prentice Hallth ed.). Prentice Hall: New : New Jersey.Jersey.