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INTRODUCTION TO HOSPITALITY MARKETING AND SALES

INTRODUCTION TO HOSPITALITY MARKETING AND SALES

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INTRODUCTION TO HOSPITALITY MARKETING AND SALES
INTRODUCTION TO HOSPITALITY MARKETING AND SALES

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LHS- INTERNATIONAL TOURISM MANAGEMENT

Tute 01 Date ………….

INTRODUCTION TO HOSPITALITY MARKETING AND
SALES

Important of Sales and Marketing team to a Hotel

High competition among the hotels, need the competent team of Sales and Marketing to
promote the product among the competitors.

Main Responsibilities

- Responsible for building the image of the organization among the customers
- Responsible for putting up a effective sales and marketing plan
- Responsible for carrying out market research product development campaign etc.
- Responsible for finding new segment in market
- Responsible for bringing business and helping out finance department to achieve the set

targets

ORGANIZING CHART OF THE SALES AND MARKETING
DEPARTMENT

Director Sales & Marketing

Sales Manger Marketing Manager

Assistant Sales Manager Assistant Marketing Manager

Sales Executives

Marketing executives

What’s Marketing?

1

Marketing is the study and management of the exchange process. It involves the things
that the property will do to select a target market and stimulate or alter that market
demand for the property services. It consist with research, action , strategies advertising,
publicity, & sales and promotion.

What’s Sales?

Sales consists of direct efforts to sell the property by personal sales, calls,
telecommunication & mailings

THE MARKETING MIX

The term Marketing mix is used to indicate the variable factors which can satisfy specific
consumer needs. It is mix of 4ps’ such as product, price, promotion, and place

2

Management’s Role in Marketing & Sales

Role of Director Marketing
-Responsible for carrying out a marketing plan through out the year
-Conducting sales promotion plan with the help of Director sales
-Responsible for identifying new segmentation of the market
-Responsible for identifying new opportunities
-Responsible for redirecting& modifying strategies that are not working well
-Other managerial function

Role of Director Sales

- Responsible for applying marketing strategies and directing the sales staff
- Responsible for putting up sales plan through out the year
- Responsible for Guiding the sales team accordingly
- Responsible for identifying new opportunities

The Challenge of Hospitality Marketing and Sales

Hospitality sales differ greatly from consumer goods sales in that the hospitality sales
person is selling something that has both tangible and intangible products.
-Intangibility
-Perishability
-Inconsistency
-Inseparability

Trends shaping the future of Hospitality Marketing & Sales

Identify new trends & act immediately
-Globalization

Expanding the business globally to attract different customer segments around the
world
Ex: International reservation / Central reservation
Developing marketing strategies for specific countries and regions

-Consolidation

It can be merge, acquisition, or making joint ventures among two or more
Corporation
-Partnership Marketing

Involving two or more partners and serving similar markets with noncompetitive
Products. It gives the benefit from each other’s strengths

-Niche Marketing & branding

3

Designing, building and marketing hospitality products for specific market
Segments
-Technology

Providing more efficiency service via technology, more properties have web
Sites and guest are also being reached on line booking facilities.

-Environmental awareness
Costumers are more concern about the environmental issues

Ex: Eco Tourism
-Guest preference
Giving a prominent place for guest whishes
-Relationship marketing
To day most of the places treat their customer as assets and making good relation ship
to get the repeat business

4

THE MARKETING PLAN

It is a guide for marketing, sales, Advertising and promotional efforts. It is the upon
which sales is built It is the property’s road map .Normally marketing plan has to develop
for at least three year period. It
- Forces Managers to think ahead and make better use of the property’s resources.
- sets responsibilities and coordinates and unifies efforts to reach the property’s sales

Goals
- Creates an awareness of problems and obstacles
- Identifies opportunities to increase market share in some market segments and new
Opportunities in previously ignore areas
- Ensure that sales promotions and advertising are not wasted because of misdirected

Efforts

If the management is uncomfortable with three year plan a compromise can be reached
by setting broad goals over the three year period and well defined objectives and
strategies for for the first year of three year cycle

The Marketing Team

It denotes a group of people representing at least one from each revenue center of the
hotel

Steps of Marketing Plan

Three are five steps that must be included

5

STEP 01 Conducting a Marketing Audit

The foundation of any marketing plan is the marketing audit. Marketing audit is the
research steps in the planning process, and is some time referred to as gathering
marketing intelligence.

-property analysis
It is a written unbiased self- appraisal used to assess the strength and weakness of your
property. Under that following factors will be considered
*Revenue and non revenue producing area
* Reputation
* Location
* Building exteriors
* Landscaping

Sample Property Analysis Form

6

Competition Analysis

An evaluation of a business’s competition to identify opportunities and unique selling
points. It is a part of marketing audit. The objectives of a competition analysis are to
discover the objectives of a competition analysis are to discover
-profitable guest groups are being served by competitors that are not being at your

property

-Some competitive benefits or advantage your property enjoys that cannot be matched
by major competitors
-Weakness in the marketing strategies of the competition on which your property can

capitalize

Ex: competitive rate analysis

Market Place Analysis

Researches the property’s current position in the market place and reveals potential
opportunities to promote the property
It evaluates the environmental opportunities and problems that can affect the business and
forces affecting a business, such as changes in life styles societal values, economic
conditions, and Technology.

7

STEP 02 Selecting Profitable Target Markets

Here we have to consider the difference market segmentation in an around us.

Market segmentation: Dividing the market in to groups of consumers with similar
needs, wants, backgrounds, incomes, buying habits, and so on
Exhibit 06 The market place analysis

STEP03 Positioning the property

Positioning: A marketing term used to describe the process of shaping how consumers
perceive the products and services offered by a particular hotel or restaurant in relation to
similar products and services offered by competitors (the process of designing a
property’s market position is known as positioning)
Positioning is not simply advertising. A property ‘s is composed of the hospitality it
offers and the managers and marketers ability to create unique selling points based on the
property location internal or external features personnel. Without positioning it is
impossible to determine what the property has to offer, where the property is going and
how it will get there etc.

8

STEP 04 Establishing Objectives and Action Plan

Once the market audit is completed, the target market segments identified and the
positioning established, the next step in the marketing plan is to establish specific
marketing objectives. This is one of the most difficult steps in the planning process
because it involves establishing goals for each market segment.
Marketing objectives should be simple should be set for each market segment, revenue
centre and revenue producing service like outsource laundry facilities. Marketing
objective should be
-In writing
-Understandable
-Realistic and challenging
-Specific and measurable

STEP 05 Monitoring and Evaluating the Market Plan

Marketing efforts should be measured carefully; the easier it will be future marketing
activities and programs. The marketing plan should be review periodically so that
corrective action can be taken through out the planning cycle.

If action plans are effective and objectives are realized within establish budget limits,
corrective action need not be a part of the process. But it is painful fact that some
strategies do not work .If hotel sales goals are not being met the problem can often be
traced to one or more of the following reasons
-Lack of responsibility
-Lack of communication
-Lack of time
-Lack of authority
-Lack of appeal
-Lack of control
-Lack of realistic goals

9

LHS- INTERNATIONAL HOTEL MANAGEMENT

Chapter 03 Date…….

Refer page 66 for sample marketing plan

Tutorial 01(Chapter 01)

Review questions 09
Case study 01

Tutorial 02(Chapter 02)

Review questions 09
Case study 01

MANAGING THE MARKETING AND SALES OFFICE

Marketing and sales Division

Marketing and sales division can be varied with the size, type, and budget of the hotel to
hotel. Small hotel only have one person who is handling all the sales activities related to
the hotel business. But large hotel have organized sales and marketing division with no of
key personnel.
Refer 74 page for organization chart for sales and marketing of a small hotel
Refer 75 page for organization chart for sales and marketing of a large hotel

Duties of key positions

Marketing research coordinator

Responsible for
-Finding out current market trends
-Marketing and sales strategies
-General consumer trend
-Fining out new market trends
-Conducting any other research activity which will affect to the business

Director of Advertising and Public Relation

10

Responsible for
-coordinate all promotional material
-establishing good public image to the company
-selecting advertising media for the property

Director of Revenue Management

Responsible for
-price structure based on the date,season,day of the week competitive situation and the
potential of the group

Telemarketing Director

Responsible for
-supervise and manage the telephone sales staff

Director of convention services

Responsible for
-overseeing the servicing of the group business once it has been sold
-handling bookings related to the convention halls
-close coordination with food and beverage department

Director of sales

Responsible for
-putting up the sales plan for the hotel
-coordinating with top management
-administrating a sales support system
-training the sales staff
-setting sales targets
-evaluating sales progress
-evaluating sales procedures

Refer page 78 for sample job description of a sales person

Organizing the Marketing and Sales Office

It can be organized in a variety of ways, based on a number of factors,
-The property’s goals and objectives
-The budget for marketing and sales
-Available outside assistance (travel agents, chain referral, reservation)
-The total market potential and the no of people needed to take advantage to take
That potential

Recruiting and hiring effective sales person

Common characteristic of an effective sales person
-professionalism
-Ability to communicate

11

-Intelligence
-Ability to analyze
-Motivation
-Efficiency
-Persistence
-Empathy
-Curiosity

Training a sales person

Each sales person should have a firm foundation in the following key areas

Property knowledge- General description about the property, the no of and type of guest
rooms, room rates, no of conventions hall, lay out of the hotel.

Office procedure – should know about the office routine works .Booking policies, sales
quotas, sales office hours, function and guest room control books, sales forms and reports

Performance standard – Expected service from the sales persons

Salesmanship- How efficiency in sales activities

Training Techniques

1 simulated sales calls
Giving to train new sales person can make a sales presentation and be critiqued by other
staff member
2 Double calling
Sales person accompanied by the director of sales or a senior person.

3 Market segmentation drills
Educating about the current serving market segments

4 Case study exercises
Making sales strategy plans for other organization which are not own by the same
company

5 In basket drill
Training about the documentation skills

Managing sales people

It is a duty of director sales to implement a proper tracing system to manage his staff

12

Evaluating salespeople

Can evaluate by studying
-No of sales calls made
-No of room nights booked and revenue generated
-No of proposal sent out
-No of follow ups on the file
-Percentage of rooms nights booked during high need time
-No of inspections conducted and business generated

Developing the Marketing and Sales Office

Communication system

It is understood fact that the department should have proper communication link within
the department as well as the the other areas. a sales marketing office relies on various
methods to communicate ideas and information, including holding meetings, keeping
sales records, and establishing filing system.

Sales records and forms

Sample sales call report

It is kind of form to be filled when making a sales call

Refer page 97 exhibit 9 for Sample sales call report

Sample booking form

It is a kind of document which filled during the booking is taken

Refer sample booking form page 99 exhibit 10

Sample lost business report

This formed to used to fill either business cancelled or changed

Refer page no 100 for exhibit 11

Sample function book reservation sheet

This sheet help to avoid double booking of particular selling place once it is sold

Refer page 101 for exhibit 12

The guest room control book

It used to monitor the no of guest rooms committed to groups. The book should indicate
no of rooms allotted to each group. The guest room control book is used to monitor the

13

no of guest rooms committed to groups. It indicate whether allotment is confirm or
tentative at any given time.
Refer page no 105 for sample guest room control report

FILING SYSTEM

There are several types of filing methods that may be used for storing client data and
other sales information. These methods fall into three general categories.
1 Alphabetical filling
2 Key word alphabetical filling
3 Numerical

The Master card file

Master cards are instrumental in establishing data banks of information on the needs of
clients. Each master card contains a summary of everything needed for an effective sales
effort, the organization name ,the names and titles of key executives ,address ,phone
numbers month or months in which group meets, the size of the group, the group decision
maker and other potential data that can help to obtain and keep that accounts business.

The Account file

It is standard size folder holding information needed for serving a client basic business
needs. The account file usually kept in a standard file folder and contains all of the
groups information , including sales call reports, tentative and confirm booking
information, function sheet of past business, and correspondence generated related to the
booking. Information is placed in the file chronological order. Account file folder to be
color corded according to various groups.
Sample account file -Refer exhibit 16 page 108

Sample manual trace file

The trace file also known as a tickler file ,bring up file , or follow up file is an effective
aid for following up an account reminder card or note is filled in the trace file by month
and date. The system is used as a reminder of correspondence, telephone calls or contacts
that must be handled on particular day.
Sample trace file –Refer exhibit 17 page 109

THE AUTOMATED MARKETING ANAD SALES OFFICE

Sales and marketing office generates an incredible of paper work, to avoid that most of
the offices are computerized.
Benefit of automation
-Less paper work
-Can provide quick and efficiency services to customer
-Easy access to sales information

14

-Facilitate personalized mailing
-Cost effective

Additional Application of Automation

- Database marketing

Data base marketing assist the marketing and sales department to organize, analyze
information about the individual guest and groups. It helps to use information from
routine source like guest folios registration cards, customer survey the group histories of
meetings to build relation ships and market the property’s services effectively.

- Home based and virtual offices

Virtual office

Because of the advance technology sales people can function their activity in any area by
using laptop computer and cellular phones.

Home based office

Sales staffs are free to do their work even staying their home. It saves initial cost of
opening sales offices

- Can generate lists, reports, and analysis application
It helps to generate quick report in various areas

- Yield and revenue management
It helps to calculate the yield and accumulated revenue for the past finance year.

EVALUATING THE MARKETING AND SALES OFFICE

It is responsibility of director sales and marketing to evaluate his or her staff on regular
basis to identify their performance and abilities towards the selling techniques.

Tutorial 03

Review questions - (page 118)
Case study -01 (page 119)

15

LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING
Lesson no 04 Date…………

PRESONAL SALES

The personal sales call is often the most effective means of customer contact, especially
when directed at volume movers of the leisure, business and meetings market. A personal
sales call is used to build rapport with clients or potential clients and sell them the
property’s product and services.
Type of personal sales call
1 cold calls or prospect calls – which can either be made in person or by telephone, are
usually made within a small geographic area with a minimum amount of time spent on
each call.
2 public relation calls – This call made for existing customer to enhance the relation ship.

3 Presentation calls – This call are made to individuals committees or groups to explain
how your property can meet their needs and to ask for their business.

4 Inside calls – These calls are made to walk-ins inquiry about the property or to group
buyers, such as tour operators and meeting planners.

Prospecting

Prospecting is the life blood of sales because prospecting identifies the individuals or
groups that may become the property’s client base in the future. At a minimum, each
sales person should be making 10 to 15 calls per week on new prospects.

Sources of prospecting

-Referral program of past and present clients
-Account penetration
-Local organization and companies
-Community contacts
-Front desk personnel
-Other property employees
-The property competitors
-Other sources
-The national level
-Networking
-The internet

16

Qualifying prospects

Qualify and quantify are two of the most important steps in the solicitation of any
account. Unfortunately, not every prospect qualifies as a potential client, in many hotels
80 percent of business is generated by 20 percent of their accounts.

Refer sample sales prospect card exhibit 2 page no 137

Prepare for the presentation sales call

Once the prospect has been called on and has expressed an interest in the property, a
presentation sales call can be made. Although you should approach each presentation
sales call with confidence, you should realize that not all presentation lead to sale. You
should have well prepared presentation. It results
1 increased credibility
2 increased confidence
3 increased probability of reaching the decision maker

Pre presentation planning

To be effective pre presentation planning should include property research, competitor
research, and client research.

Property research includes the developing a property fact book including various
information related to the hotel. Such as
-General property description
-Guest rooms
-Restaurants and lounges
-Meeting and banquet facilities
-Audiovisual equipment
-Transportation
-Recreation facilities
-Out side services
- Vendors

Competition research includes the the gathering various information related to the
competitors strengths, weaknesses, and their customer base.
Refer sample competition analysis-page 143 exhibit 03

Client research includes the study about client, annual reports, internet sites, business
directories, articles, trade journals etc...

The sales kit

Before making a sales call you should prepare a well organized and professional sales
kit. Only the information pertinent to the client’s particular needs should be included, too
much information results in clutter and appears unprofessional.

17

Projecting a professional image

You are the official representative of the property and your appearance, attitude, and
approach to clients can mean the difference between new business and a negative
response. Remember, you never get a second chance to make good first impression.
First and foremost, never smoke; chew gum, or drinking during a sales call. Other factors
in projecting a professional image include nonverbal communication, voice quality,
listning skills, and negotiation skills

Nonverbal communication

-Appearance
-The handshake
-Territorial space
-Public space
-Social space
-Personal space
-Intimate space
-Body language

Voice quality

The sales presentation must be clear and understandable to be effective. The human voice
is a persuasive instrument when used properly, and it is vitally important that you learn to
use your voice as a selling tool.

Listening skill

At the other end of the spectrum, you must know when to stop talking. You need to show
genuine interest in your clients’ need, and listening is and important part of building a
rapport.

Negotiating skill

Listening plays a key role in yet another important sales skill, negotiating. Negotiation
involves two or more parties coming together to reach an agreement for their mutual
benefit.

The presentation sales call

The objective of a presentation sales call is to book business for the property .once you
have prepared yourself for a presentation sales call it is time to make an appointment with
the client and follow the five steps that will help ensure success.
1 opening the sales calls
2 Getting client involvement
3 Presenting your property
4 Overcoming objections
5 closing and following up

18

1. Opening the sales call

All sales call begins with an opening. The opening should put the customer at ease
establish rapport and build the prospects confidence and trust in you it divides in to
following stages
-Introduction
Giving introduction about the presenter
-Purpose statement
Stating purpose of the visit
-Benefit statement

Reasoning out why he /they should listen to him and benefits what they can gain

-Bridge statement
This will indicate the body of sales presentation

2. Getting a client involvement

Second stage in the sales call focus on determining the client’s specific needs and
involving the clients by asking questions questioning always precedes any sales
presentation. This is is a fundamental rule. Questioning and presenting are separate steps.

3. Presenting your property

You should have prepared, rehearsed sales presentation that addresses the needs of each
of the major market segments the property has targeted. For example a general sales
presentation for meeting planners that relates specially to the needs of that segment.
There are three skills required for a successful presentation; they are
-Organization
-Effective speaking
-Visual aids
Refer exhibit 05 page 154 for sample presentation planning check list.

Closing the presentation

When you have conclude the presentation, a transition phrase, which may be simple as
“do you have any questions” can lead to the next step of the sales call overcoming any
objections expected by the client.

4. Over coming the objections

Step four of the sales call deals with those times when the client has objections to your
sales presentation. Objection can occur at any time, and there is no reason to panic when
an objection is raised. Some objections are a client’s way of asking fro more information
and some may offer an opportunity to close the sale. Normally the objection fall in two
three main categories
1.Price or rate
2.Product or service
3.Lack of interest

19

4.Closing and following up
Closing up
Many sales people enjoy presenting their products, but hesitate when it comes to
closing. Closing is not difficult, however, when you understand some fundamental
principles involved. There two basic types of closes. Test close and major close. Test
close try draw a reaction from the client. A major close is a question or statement that
asked for sales.

Following up
It is necessary to follow up all the sales call was made. If a sale was not made, follow
up can consist of a brief thank you letter. The letter should be accompanied by
additional material not given to the client at the time of presentation and any materials
specifically requested by the client.

Improving sales productivity

Sales is a highly competitive field, and you should constantly monitor your
performance in no of areas. In order to measures your productivity, you must first
have a written list of goals, goals keep you on track and allow you to gauge your
success the basis for goals should always be the hotel’s marketing plan, and success
should be evaluated in terms of achieving the optimum customer mix set by the
property.

Time management

Good time management is leads to successful sales career. It is important to have
track record for time utilization for each task. Your workday should be planned. Non
selling task should be eliminated during during prime selling time, and emphasis
given to work items with deadlines. In order to use time most effectively, time spent
on routine work should be minimized. By using a hotel director a sales person can
utilize his time effectively
Refer sample hotel director in page 164

Key account manager

A typical sales person at properties of all sizes handles 300 to 400 accounts. Landing
new accounts does not mean that you must service an ever increasing number of
clients. New accounts with high potential will replace those with the lowest potential
for business, so that the total no of accounts you service will remain relatively stable
as you continually increase the quality of the accounts being followed

Tutorial - 04

Review Questions10 Nos (page 168)

20

LHS - INERNATIONAL HOTEL MANAGEMENT

LESSON – HOSPITALITY SALES & MARKETING
Lesson no 05 Date…………

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