© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Chapter Seventeen The Communications Mix: Personal Selling

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Emphasis on Personal Selling  Direct interaction between a seller and prospective buyer to make a sale  Used by organizations when: –Customer needs assistance, demonstration, and trial –Price is negotiated –Distribution channels are short and training is needed –Advertising media does not saturate all necessary areas –The market perceives selling as a part of the product

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Emphasis on Personal Selling (cont.)  Advantages –Makes services more tangible –Tailored solutions can be offered –Matching buyers to sellers means money may be better spent –Can reduce risk and persuade buyer to purchase –Permits direct feedback from the customer –Opportunity for relationship marketing

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Sales Process  Prospecting  Qualifying prospects  The sales approach  Handling objections  Closing of the sale  Follow-up

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Sales Approach  Communicating with customers  More important with supply exceeding demand  Good salespeople are problem solvers  Establishing long-term relationships with interdependence

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Sales Approach (cont.)  What to sell –Need versus opportunity  Probing –Open probes –Closed probes  Benefits and features –Match benefits to customer needs –Customers buy benefits, not features

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Sales Approach (cont.)  Customer attitudes: –Skepticism –Misunderstanding –Indifference  Probe for unrealized needs –Objection  Usually cannot be changed  Outweigh or offer an alternative

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition The Sales Approach (cont.)  Closing  Follow-up

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Sales Management  Integrating skills on the sales force  May be a gap between good sales skills and good management skills  Account management The sales equation: Past Customers + New Customers = Goals

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Sales Management (cont.)  Organization of sales team –Staffing should be based on total number of projected sales calls –Organized by:  Geographic territory  Market type  Account  Product line

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Sales Management (cont.)  Product line management in hotels  One representative services all three products: –Group –Transient –Catering

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Development of Personnel  Critical to the firm’s success  Begins with recruitment and training  Business is lost if salespeople are lost  “Move up and out” philosophy

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Development of Personnel (cont.)  Unethical practices in personal selling  The Salesperson’s Company:  Misrepresentation of call reports  Misrepresentation of expense accounts  Use of company assets for personal benefit  Conflict-of-interest situations  Disclosure of proprietary company information  Disparagement of the company  The Salesperson’s Customers and Prospects:  Misrepresentation of yourself  Misrepresentation of your company  Misrepresentation of your products or services  Use of high-pressure selling tactics  Inappropriate gift-giving  Disclosure of proprietary customer information  The Salesperson’s Competitors:  Disparagement of a competitor’s company  Disparagement of a competitor’s product or service  Disparagement of a competitor’s sales representative

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Development of Personnel (cont.)  Motivation –Need to be consistently motivated –Represent products daily –Pay tied to productivity or quotas

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition Sales and Operations  “Sales sells and operations provide”  Communication critical to effective marketing  Problems with sales: –Operation’s perception of a “cush” job –No direct authority over operations  Sales should communicate to confirm capabilities to meet customer needs

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4 th edition