Chapter 15 delves into the topic of professional sales.
The topic of discussion is Professional Sales. Proficient proprietors and administrators comprehend
the necessity of perpetual selling.
A. The nature of sales in the hospitality industry. Sales personnel act as the intermediary between the
company and its customers. The utilization of personal selling as a communication tool by a company
is considered to be the most costly. Sales representatives are responsible for a variety of tasks,
including prospecting, targeting, communication, selling, servicing, information gathering, allocation,
and maintenance of strategic partnerships. The combination of duties assigned to sales representatives
is contingent upon the prevailing economic conditions. As corporations transition towards a more
robust market orientation, it is imperative that their sales personnel adopt a more market-centric and
customer-focused approach. It is imperative for sales personnel to possess the ability to generate both
customer contentment and organizational revenue. Proficiency in analyzing sales data, measuring
market potential, gathering market intelligence, developing marketing strategies and plans, and
utilizing sales tactics is essential.
1. The examination of competitors and their respective market positions, as well as the identification
of similar businesses within a particular industry, are commonly referred to as competitive analysis
and competitive sets, respectively. Sales managers operating in the hospitality sector are frequently
responsible for the evaluation of their establishments vis-à-vis those of their competitors. In the
hospitality industry, prevalent methodologies include evaluating the Average Daily Rate, Product
Type, and Management Company Set when analyzing hotels.
Sales force objectives are designed to ensure the achievement of corporate goals and aid sales force
members in devising and implementing their individual sales initiatives. It is imperative to create
tailored objectives on a yearly basis for every organization. It is imperative that individual objectives
align with the overarching corporate goals, as well as the marketing and sales objectives. Individual
objectives are assigned by the sales manager.
1. The measure of the quantity of goods or services sold within a given period of time. Occupancy,
passenger miles, and total covers are widely used metrics for quantifying sales volume. Focusing
solely on volume can result in the implementation of price discounting strategies, which may attract
unfavorable market segments and necessitate cost-cutting measures. The implementation of objectives
based on volume and price/margin segments has been found to result in enhanced revenue.
2. The practices of upselling and second-chance selling are commonly employed in various industries
to increase sales revenue. There are potential opportunities for profit through the sale of premium-
priced products and supplementary services.
3. The two concepts under consideration are market share and market penetration. There is a potential
for the sales department of hotels and resorts to face an increasing demand for measuring market
potential and being held responsible for achieving a predetermined level of market penetration.
Undoubtedly, the measurement of hotel sales will increasingly rely on independent measures of
market penetration, such as the STAR report.
4. Objectives that are specific to a particular product. At times, the sales team is tasked with
enhancing the sales volume of a particular product.
II. The topic of discussion pertains to the structure and size of the sales force.
1. A sales force that is structured based on territorial boundaries. The company designates a distinct
geographic area for each sales representative to exclusively promote its complete range of products.
Territories are structured to ensure either equitable sales potential or an equitable distribution of
workload. The process of forming territories involves amalgamating smaller units until they reach a
certain level of sales potential or workload, resulting in the creation of a territory.
2. A sales force organized by market segments. The company implements a sales force structure that is
organized according to distinct market segments.
3. A sales force structured according to market channels. Marketing intermediaries, including
wholesalers, tour operators, travel agencies, and junket representatives, play a crucial role in the
hospitality industry. As a result, sales force structures have been developed to cater to various
marketing channels.
4. A sales force that is structured according to customer needs and preferences. There are particular
customers whose significance is crucial to the prosperity of the organization. Typically, the sales team
is structured to cater to these accounts by means of a national or pivotal account framework.
5. A sales force structured in a combination format. A comprehensive hotel establishment may possess
a catering/banquet sales unit (product), a convention/meeting sales unit (market segment), a tour
wholesale sales unit (marketing intermediary), and a national account sales unit (customer).
6. The magnitude of the sales force. The categorization of customers is based on their yearly sales
volume and is classified into different size classes. The established call frequencies for each class
determine the desirable number of sales calls made on an account per year. To determine the total
workload for sales calls per year in the country, the call frequency for each size class is multiplied by
the number of accounts in that class. The determination of the mean quantity of calls that a sales
representative can execute annually is undertaken. The calculation for determining the necessary
quantity of sales representatives involves dividing the aggregate amount of yearly calls required by
the mean quantity of yearly calls executed by an individual sales representative.
B. The process of structuring and managing the sales division.
1. The internal sales team. The internal sales team comprises individuals who provide technical
assistance, aid in sales, and engage in telemarketing.
2. The field sales force is a team of personnel who engage in direct sales activities outside of a
company's physical location. The field sales force comprises a variety of personnel, including
commissioned representatives, salaried representatives, and sales teams.
3. Sales achieved by a group of individuals working collaboratively towards a common goal.
Collaborative efforts of two or more individuals aimed at achieving a shared sales goal, which may
include tactics such as sales blitz, relationship marketing, and strategic alliance formation. The
individuals in question may not necessarily be affiliated with the same organization. The rationale
behind adopting a team-based sales approach is to achieve desired outcomes by leveraging the
combined efforts of two or more individuals, which would otherwise be unfeasible or excessively
expensive through individual sales endeavors. Strategic alliances represent a sophisticated
manifestation of relationship marketing, frequently observed between a supplier and purchaser, or
among non-competing suppliers who share a common customer. A strategic alliance can encompass
the sharing of various resources such as confidential information, databases, market knowledge,
planning resources, risks, security measures, and technology. The hospitality industry has witnessed
the emergence of strategic alliances as an imperative measure in response to the challenges posed by
globalization, intricate customer demands, the presence of large customers with multiple locations, the
necessity for advanced technology, the heightened interdependence between vendors and buyers,
intensified competition, and low profitability.
III. The process of acquiring and developing a proficient sales team.
The significance of meticulous selection. Proficient salespersons possess two fundamental attributes:
empathy, which refers to their capacity to comprehend and share the customer's feelings; and ego
drive, a robust personal motivation to secure the sale.
B. Developing a comprehensive profile of desirable attributes that align with the organizational
culture.
C. Aligning professional pursuits with organizational goals.
D. Training for sales force. The training programs can be classified into three categories, namely
product/service training, policies, procedures, and planning training, and sales techniques training.
IV. Selling
The process of choosing sales strategies. The principle of Pareto, commonly known as the 80/20 rule,
is observed in the hospitality sector. The concept posits that a significant proportion of a company's
revenue is generated by a small fraction of its clientele. These accounts are frequently denoted as key,
national, or major accounts. The subsequent six sales strategies are of a general nature:
1. Mitigating the erosion of crucial accounts.
2. Develop and expand the strategic accounts.
3. Develop the chosen peripheral accounts.
4. The task at hand involves the removal of specific peripheral accounts.
5. Preserve specific marginal accounts while delivering sales assistance at a reduced cost.
6. Acquire fresh clientele from targeted potential customers.
B. The present discourse pertains to the principles of personal selling, which are integral to sales force
tactics.
When it comes to instructing sales personnel on the acquisition of signed contracts, two fundamental
methods exist: a sales-centric approach and a customer-centric approach. The initial training program
instructs the sales representative in the application of forceful sales tactics, commonly employed in
the sale of automobiles. The strategies encompass amplifying the advantages of the product,
scrutinizing rival products, employing a polished delivery, promoting oneself, and providing a certain
degree of price concession to secure the purchase immediately. This particular sales approach operates
on the premise that customers are unlikely to make a purchase unless they feel pressured to do so, that
they are susceptible to being swayed by a polished sales pitch and flattering demeanor, and that any
potential regrets they may have after making a purchase are inconsequential. The alternative
methodology involves providing sales personnel with training in the domain of customer-centric
problem-solving. The sales representative acquires the skills of active listening and effective
questioning to discern customer requirements and devise optimal product recommendations. The
prioritization of customer-need analysis skills supersedes that of presentation skills. The
aforementioned approach postulates that there exist underlying needs of customers which can be
leveraged as opportunities for companies. It further assumes that customers value positive
recommendations and are inclined towards maintaining a lasting relationship with sales
representatives who prioritize their long-term welfare. The notion of the problem solver is deemed
more congruous for the sales representative within the marketing framework, as opposed to the hard
seller or order taker. There exist eight primary dimensions of personal selling. The sales process
typically involves several stages, including prospecting and qualifying, preapproach, approach,
presentation and demonstration, negotiation, overcoming objections, closing, and
follow-up/maintenance.
Supervising a professional sales force is a crucial aspect of managing a successful business.
Motivating a sales force comprised of professionals. The optimal performance of sales representatives
is contingent upon the provision of motivation and rewards, due to the inherent demands of the
profession, the complexities of human behavior, and individual challenges. The sequence of
motivation leading to effort, which in turn affects performance, ultimately determines the rewards and
satisfaction obtained.
1. The topic of interest pertains to the compensation of sales force. It is imperative for the
organization to ascertain the constituents of remuneration, which may include a predetermined sum, a
fluctuating sum, disbursements, and supplementary benefits. The predetermined sum, which may take
the form of a regular payment, is designed to fulfill the sales representatives' requirement for financial
security. The variable amount, which encompasses commissions, bonuses, or profit sharing, is
designed to incentivize and acknowledge heightened exertion. Expense allowances are provided to
sales representatives to cover expenses related to travel, lodging, dining, and entertainment. Fringe
benefits, such as paid vacation, sickness or accident benefits, pensions, and life insurance, are
designed to offer job security and enhance job satisfaction. The existence of fixed and variable
compensations results in the emergence of three fundamental categories of compensation schemes for
sales personnel, namely, pure salary, pure commission, and hybrid salary-commission plans.
2. Additional incentives. Sales meetings serve as a crucial means of communication and motivation
within an organization. Sales contests incentivize the sales team to exert additional efforts.
VI. Assessment and Management of a Competent Sales Team.
Sales quotas are predetermined targets set for sales representatives to achieve within a specific period
of time. Supporters of the high-quota approach contend that it stimulates additional effort, whereas
advocates of the modest-quota approach maintain that achieving realistic objectives fosters self-
assurance.
B. Establishing standards of behavior for sales representatives. It is common for corporations to
establish a designated amount of time for their sales personnel to allocate towards prospecting for
novel accounts.
C. Optimizing the utilization of sales time. The yearly call schedule displays the designated customers
and potential clients to be contacted at specific times. Enterprises are consistently striving to enhance
the productivity of their sales force.
D. The effective management of trade shows. Thorough planning has the potential to enhance the
efficacy of attending trade shows for the purpose of lead generation and customer retention.
E. Additional control techniques that can be utilized include the examination of reports, personal
observations, customer feedback, and other representatives. The primary indicators of sales
performance consist of the average number of sales calls made by each salesperson on a daily basis,
the average duration of each sales call, the average revenue generated per sales call, the average cost
incurred per sales call, the entertainment expenses associated with each sales call, the percentage of
orders received per 100 sales calls, the number of new customers acquired within a given time frame,
the number of customers lost within a given time frame, and the percentage of sales force cost in
relation to total sales.
F. The process of formally assessing performance encompasses a range of methods, such as
comparing salesperson performance to that of their peers, evaluating customer satisfaction, and
conducting qualitative assessments.
VII. The practice of utilizing social media platforms and other digital communication channels to
build relationships with potential customers and ultimately drive sales is commonly referred to as
social selling.
The utilization of digital platforms such as online, mobile, and social media tools. This study
examines the utilization of digital platforms such as online, mobile, and social media as a means of
fostering customer engagement, enhancing customer relationships, and bolstering sales performance.
B. The advent of mobile technology and social media has enabled the facilitation of peer-to-peer
sales.
C. Networking can be achieved through in-person meetings as well as virtual means such as social
networking platforms.
Chapter 16 delves into the topics of direct, online, social media, and mobile marketing.
The topic of discussion is Direct and Digital Marketing.
The marketing strategy in question pertains to the direct engagement of specific individual consumers
and customer communities, with the aim of eliciting an immediate response and fostering enduring
customer relationships. Direct marketing is a strategy employed by companies to customize their
offerings and materials to suit the specific requirements and preferences of highly specific groups or
individual consumers. By employing this approach, businesses establish customer engagement, foster
brand community, and drive sales.
A. The novel approach to marketing directly to consumers. The emergence of online social and
mobile media has brought about a significant transformation in the field of direct marketing. Direct
and digital marketing represent a comprehensive business model, rather than mere supplementary
channels or advertising media.
B. The advantages of direct and digital marketing for both buyers and sellers. Direct and digital
marketing offer convenience, ease, and privacy to purchasers. E-commerce platforms provide
consumers with unrestricted access to a vast array of products and an abundance of information
pertaining to the products and purchasing process, accessible at any time and from any location.
Direct marketing is a cost-effective and efficient means for sellers to reach their target markets
quickly and with greater flexibility. In contemporary times, the digital landscape has created a
platform for direct marketing to offer prospects for instantaneous marketing that associates brands
with significant occasions and current trends in the lives of consumers.
C. This text pertains to the various modes of direct and digital marketing. Conventional methods of
direct marketing comprise of in-person sales, direct mail advertising, catalog advertising,
telemarketing, direct response television advertising, and kiosk advertising. In recent times, a novel
array of digital and direct-marketing instruments has surfaced. The various channels of digital
marketing encompass websites, online advertisements, promotional emails, online videos, blogs,
social media marketing, and mobile marketing.
II. The topic of interest is Digital and Social Media Marketing.
Digital marketing tools and platforms enable direct consumer engagement through various digital
devices such as computers, smartphones, tablets, smart TVs, and others, regardless of location and
time. The utilization of the internet and digital technology has a significant effect on both consumers
and marketers who cater to their needs.
A. The intersection of marketing, the internet, and the digital age. The advent of the digital era has
significantly altered customers' perceptions of convenience, speed, pricing, product information,
service, and brand engagements. Consequently, the advent of this technology has provided marketers
with a novel approach to generating customer value, fostering customer engagement, and cultivating
customer relationships. Furthermore, enterprises that have conventionally functioned through offline
means have presently established their individual online avenues for sales, advertising, and
community building.
B. The topic of discussion is online marketing. The term "online marketing" pertains to the promotion
of products or services through the internet by means of company websites, online advertising and
promotions, email marketing, online video, and blogs.
1. Web sites and branded Web communities are digital platforms that enable individuals and
organizations to establish an online presence and engage with their target audience. The initial stage
for the majority of businesses in implementing digital marketing strategies involves the development
of a website. Certain websites are intended to involve customers and facilitate their progress towards a
direct purchase or other marketing objective, whereas others prioritize the presentation of brand
content that captivates consumers and fosters a sense of community between the customer and the
brand.
2. The topic of interest is online advertising. The utilization of online advertising has emerged as a
significant promotional channel. The primary modalities of digital marketing are display
advertisements and search engine-related advertisements. Collectively, they constitute the most
significant proportion of digital marketing expenditures for firms.
3. The practice of utilizing electronic mail to promote products or services to a targeted audience is
commonly referred to as email marketing. Electronic mail has the potential to serve as the ultimate
medium for direct marketing. Marketers have the capability to transmit messages that are precisely
tailored to the intended audience, with a strong emphasis on fostering relationships through
personalized communication. Several organizations utilize customizable email systems that enable
customers to select their preferred content to avoid the inconvenience caused by unsolicited emails.
4. The topic of interest is online videos. Digital videos have the ability to captivate consumers and
serve as a cost-effective means of promoting products or services. Videos have the potential to
become viral and attract a significant amount of attention.
5. Online platforms such as blogs and forums. Blogs, also known as Web logs, are digital platforms
utilized by individuals and organizations to publish their personal reflections and other forms of
content, typically pertaining to specific subject matters. Typically, they tend to appeal to particular
special-interest factions.
C. The topic of discussion is social media marketing. The impact of social media on travel products
can be interpreted as a shift from personalized, one-on-one recommendations to collective, multi-
party discussions. Historically, individuals have frequently relied on interpersonal communication
with acquaintances, family members, or community members as a means of obtaining personal
sources. The scope and depth of discourse has been significantly broadened by the proliferation of
social media.
1. Utilizing social media platforms. There are two approaches that marketers can adopt to participate
in social media: leveraging pre-existing social media platforms or creating their own. Leveraging pre-
existing social media platforms appears to be the most straightforward approach. Consequently, a
multitude of social media platforms have been utilized by numerous brands, both prominent and
obscure.
2. The advantages and challenges of marketing through social media. Social media platforms offer a
personalized approach to marketing, enabling advertisers to develop and distribute customized brand
messaging to specific consumers and their respective communities. Social media platforms facilitate
interactivity, rendering them well-suited for initiating and engaging in customer dialogues, as well as
monitoring customer input. Social media platforms possess the characteristic of immediacy and
timeliness. Social media has the potential to be a cost-effective tool. The implementation of social
media marketing poses certain obstacles. Initially, numerous corporations are currently in the process
of conducting trials to determine the most efficient utilization of these tools, and quantifying
outcomes has proven to be challenging. Moreover, these social networks are predominantly governed
by the users themselves.
3. The management of social media content generated by users. The value of user-generated content
(UGC) remains significant, regardless of its sentiment being positive or negative. Positive feedback
fosters a sense of community and promotes product adoption among potential users. The critical
remarks offer constructive criticism regarding the aspects that customers find unfavorable and the
ways in which the company failed to fulfill their expectations. The aforementioned remarks aid in
enhancing the organization's service delivery mechanism.
4. The act of actively engaging with customers on social media platforms to gather feedback and
insights. A primary objective of a corporation's social media strategy ought to be to foster customer
engagement and facilitate dialogue.
5. The topic of discussion pertains to social media on a global scale. Social media managers operating
on a global scale will be required to ascertain the most efficacious platforms as they traverse various
regions.
6. The concept of incorporating social media into marketing strategies. Organizations that effectively
utilize social media are incorporating a wide array of varied media in order to establish brand-oriented
social sharing, engagement, and customer community.
D. The topic of interest is mobile marketing.
Mobile marketing encompasses the dissemination of marketing messages, promotions, and other
marketing content to consumers who are frequently on the move, via their mobile devices. Mobile
marketing is utilized by marketers to effectively engage customers at any given time and place,
throughout the stages of purchasing and developing relationships.
III. The topic of interest pertains to the utilization of customer databases in the context of traditional
direct marketing. The foundation of successful direct marketing is a high-quality customer database. A
customer database refers to a systematically arranged compilation of extensive information regarding
individual customers or potential customers, encompassing geographic, demographic, psychographic,
and behavioral data. An effective customer database has the potential to serve as a powerful tool for
cultivating and strengthening customer relationships.
A. The applications of databases. Organizations utilize databases as a means to identify promising
prospective clients and to generate sales prospects. Organizations have the ability to extract valuable
insights about their customers by analyzing their databases. This enables them to optimize their
marketing strategies and tailor their communication efforts to cater to the unique preferences and
behaviors of specific target segments or individuals. Overall, the utilization of a company's database
can serve as a significant asset in fostering more robust and enduring customer connections.
B. The key factors for successful customer engagement include personalization, disclosure of
information, and providing value to customers. It is probable that customers will reveal personal data
in return for personalization. Nonetheless, individuals tend to reveal their personal information solely
when they perceive that the act of disclosure holds significant value. Hence, a viable approach for a
business to deliver value to its clientele is by providing customized merchandise.
IV. The topic of interest pertains to the concepts of Relationship Marketing and Loyalty Programs.
The utilization of direct marketing enables companies to establish a robust bond with their clientele,
thereby mitigating the likelihood of customer defection to rival firms. Relationship marketing is
characterized by a focus on long-term objectives. The objective is to provide enduring value to clients,
and the metric of achievement is sustained customer contentment. The implementation of relationship
marketing necessitates the collaboration of all organizational departments in conjunction with
marketing as a cohesive unit, with the ultimate objective of providing optimal customer service. The
process entails establishing connections across various dimensions such as economic, social,
technical, and legal, which ultimately leads to a strong sense of customer allegiance.
A. The advantages of implementing customer relationship management. The advantages of Customer
Relationship Management (CRM) stem from fostering ongoing patronage of devoted customers,
curbing marketing expenses, mitigating price sensitivity among loyal customers, and promoting
collaborative endeavors among loyal customers.
B. The topic of interest pertains to loyalty programs. Loyalty programs were devised as a means of
enticing and retaining a firm's most valuable clientele. The primary transformation in North American
hotel loyalty programs pertains to the changing significance of generational trends, with millennials
gaining momentum while baby boomers are losing ground.
Traditional forms of direct marketing are the established methods of promoting products or services
directly to consumers without intermediaries. Direct-mail marketing, telephone marketing, kiosk
marketing, and iTV are among the conventional methods of direct marketing employed in the
hospitality industry.
A. Direct-mail marketing is a promotional strategy that involves sending advertising materials directly
to potential customers through the mail. The act of transmitting a proposal, notification, prompt, or
any other item to an individual at a specific location. Direct marketers distribute millions of mail
pieces annually through the utilization of meticulously curated mailing lists.
B. Telemarketing. Telemarketing is a sales technique that entails the use of telephone communication
to directly sell products or services to both individual consumers and corporate clients.
C. The topic of interest is kiosk marketing. With the increasing familiarity of consumers with
computer and digital technologies, several companies are incorporating kiosks, which are information
and ordering machines, in various locations such as stores and airports. It is important to note that
kiosks differ from vending machines as they do not dispense tangible products.
D. Interactive Television (ITV) is a technology that enables viewers to engage with television
programming and advertising using their remote controls.
VI. The topic of concern is the protection of personal information and digital security in the online
environment. It is the responsibility of marketers to safeguard the privacy of customer data and ensure
the security of sensitive personal information, such as credit card details.
