Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Chapter 17 Professional Sales

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ What is Personal Selling? Involves Two-Way, Personal Communication Between Salespeople and Individual Customers Whether:  face to face,  by telephone,  through video conferencing,  or by other means.

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Classification of Sales Positions Deliverer – delivers products takes reorders Order taker – Handles existing demand Missionary – Creates goodwill and future business Technician – Has technical knowledge that is required to sell product – for example software systems Demand creator – Creates demand

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Tasks Performed By Salespeople Prospecting Targeting Communicating Selling Servicing Information gathering Allocating

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Sales-Force Objectives Upselling & second chance selling Increase market share or market penetration Product-specific objectives Sales volume

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Sales Force Structure Territorial –Size –Shape Market-segment – Example state associations Market channels – Example – wholesalers, travel agents Customer structured – Focus on key accounts Combination of above

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Salesforce Size Sales volume Desired number of calls Number of accounts Numbers of calls per sales person Sales force size equals the the total annual number of calls divided by the annual call volume per salesperson

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Factors influencing Size Corporate/chain sales support Use of sales reps Team Selling Electronic Sales Travel intermediaries dependency

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Inside Sales Force Inside Sales Force Outside Sales Force Outside Sales Force Travel to Call on Customers Travel to Call on Customers Commisioned Reps Commisioned Reps Salaried Sales Force Salaried Sales Force Conduct Business From Their Offices Via Phone or Buyer Visits Conduct Business From Their Offices Via Phone or Buyer Visits Reservations Tele- Marketing Or Internet Tele- Marketing Or Internet Other Sales Force Strategy and Structure Issues

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Relationship Marketing and Strategic Alliances Relationship marketing: relationship marketing is based on the premise that important accounts need focused and continuous attention. Salespeople working with customers under relationship marketing must do more than call when they think customers might be ready to place orders. A strategic alliance may involve sharing a combination of any of the following: confidences, database, market knowledge, planning, resources, risks, security, and technology. Three types of strategic alliances have been characterized for the hotel industry: (1) One-night stands. (2) Affairs. (3) I do’s.

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Negative consequences of salesperson leaving; poor service, lost customers, corporate intelligence, image Recruiting and Selecting What is the break-even point?

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Need to win, need to hold affection of others, energy, self-confidence, hunger for money, knowledge of industry, fit with industry, regards objection as a challenge, empathy, ego. Characteristics of a good salesperson

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Training Sales Representatives Know and identify with the company Know company’s products Know customers’ and competitors’ characteristics Know how to make effective presentations Know how to manage their activities

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Selecting Sales Strategies 1. Prevent erosion of key accounts. 2. Grow key accounts: keep priorities in order. 3. Grow selected marginal accounts. 4. Eliminate selected marginal accounts. 5. Retain selected marginal accounts but provide lower-cost sales support. 6. Obtain new business from selected prospects.

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Steps in the Selling Process Prospecting & Qualifying Salesperson Identifies Qualified Potential Customers. Process of Identifying Good Prospects and Screening Out Poor Ones Preapproach Salesperson Learns as Much as Possible About a Prospective Customer Before Making a Sales Call. Approach Salesperson Meets the Buyer and Gets the Relationship Off to a Good Start. Presentation and Demonstration Presentation and Demonstration Salesperson Tells the Product “Story” to the Buyer Using the Need-Satisfaction Approach.

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Steps in the Selling Process cont. Closing Overcoming Objections Overcoming Objections Follow-Up Negotiation Salesperson Asks the Customer for an Order. Salesperson Seeks Out, Clarifies, and Overcomes Customer Objections to Buying. Occurs After the Sale and Ensures Customer Satisfaction and Repeat Business. The two parties need to reach agreement on the price and other terms of sale

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Sales managers must be able to convince salespeople that they can sell more by working harder or by being trained to work smarter. Sales managers must be able to convince salespeople that the rewards for better performance are worth the extra effort. Motivating Sales Representatives

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Fixed Amount Usually a Salary Fixed Amount Usually a Salary Variable Amount Usually Commissions Or Bonuses Variable Amount Usually Commissions Or Bonuses To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements To Attract Salespeople, a Company Must Have an Attractive Plan Made Up of Several Elements Expense Allowance For Job Related Expenses Expense Allowance For Job Related Expenses Compensating Salespeople

Marketing for Hospitality and Tourism, 3e©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James MakensUpper Saddle River, NJ Formal evaluations What are the company’s expectations Salesperson-to-salesperson comparisons Current-to-past sales comparisons Customer-satisfaction evaluation Qualitative evaluation Salesforce compensation salary, commission, bonus, fringe benefits, expense allowances, incentives Evaluating Sales Representatives