PROFESSIONAL
SALES
TOURISM AND HOSPITALITY
MARKETING | THC1107
LEARNING
OBJECTIVES
1. Explain the role and 4. Discuss supervising
nature of personal salespeople, including
selling and the role of directing, motivation, and
the sales force. evaluating performance.
2. Describe the basics of 5. Apply the principles of the
managing the personal selling process, and
salesforce, and explain outline the steps in the selling
how to set sales force process: prospecting and
strategy, how to pick a qualifying, pre-approach and
structure—territorial, approach, presentation and
product, customer, or demonstration, negotiation,
complex—and how to overcoming objections,
ensure that salesforce closing, and follow-up.
size is appropriate.
3. Identify the key issues
in recruiting, selecting,
training, and
compensating
salespeople.
NATURE OF
HOSPITALITY SALES
§Personal selling produces
great returns for the
company if managed
effectively.
§Sales orders not just one
but often require five or
more calls to close (Kotler,
2017).
TASKS OF A SALES REPRESENTATIVE
Servicing
Prospecting
Targeting Information gathering
Communicating Allocating
Maintaining
Selling Strategic
Partnerships
A. Sales Volume
B. Upselling and second-chance SALESFORCE
selling
OBJECTIVES
C. Market share or market
penetration
D. Product-specific objectives
A. Sales Volume
1. Sales volume by selected segments
2. Sales volume and price/margin mix
B. Upselling and 2ND Chance Selling
Hospitality business like hotels and resorts, has opportunities to
profit by upgrading price by ‘upselling’ (selling higher-priced
products, e.g. selling from a standard room to suite)
Second chance selling includes offering additional services for
a fee (i.e. a client who booked a room may be offered
additional services like additional rooms, spa vouchers, etc.)
MARKET SHARE is the
C. Market Share/ percentage of all
Market Penetration products in a category
that a certain company
sells.
In hospitality this can be ([Link])
gauged according to:
• Occupancy
• Average room rate
• Yield
• Customer mix
As an example, look at this report from the
Philippine Statistics Authority (PSA).
§ Restaurants and
mobile food
service activities
industry
accounts for
majority of
establishments
D. Product-specific Objectives
At times, a salesforce
is charged with the
specific responsibility
to improve sales
volume for specific
product/service lines.
SALES FORCE
STRUCTURE
AND SIZE
Each sales
representative is
assigned an exclusive
territory in which to
represent the
company’s full line.
SALES FORCE STRUCTURE AND SIZE
A. Territorial-structured B. Market-segment C. Market-channel
Sales Force Structured Sales Structured Sales
§ Territory size Force (varies on the Force
§ Territory shape market being The importance of
served, i.e., young marketing
professionals, intermediaries, such
retirees, family, etc. as wholesalers, tour
operators, travel
agencies, and junket
reps, to the
hospitality industry
has created sales
force structures to
serve different
marketing channels
SALES FORCE STRUCTURE AND SIZE
D. Customer-structured sales E. Combination-structured
force sales force
A sales force is organized by
market segment categorized A large hotel might have a
per type of customer (i.e. catering/banquet sales
corporate or individual force (product),a
customers) convention/meeting sales
force (market segment), a
tour wholesales sales force
(marketing intermediary),
and a national accounts
sales force (customer)
SALES FORCE STRUCTURE AND SIZE
F. Sales Force Size
§ Customers are grouped into
size classes according to their
annual sales volume.
§ The desirable call frequencies
(number of sales calls on an
account per year) are
established for each class.
ORGANIZING THE SALES DEPARTMENT
A. Inside sales force
This includes technical support persons, sales assistants, and telemarketers who
are organic or directly employed by the company.
B. Field sales force
This includes commissioned reps, salaried reps, and sales team who are most of
the time in the ’field’ or outside the office to sell.
C. Team sales
This is done through the synergism of two or more people to sell the producst
and services of the company by, but not limited to, sales blitz, joint sales call,
charity promotions or community extension engagements.
Why strategic
alliances are
RELATIONSHIP STRATEGIC necessary?
MARKETING ALLIANCES
The art of creating a A highly developed form § Globalization
closer working of relationship marketing
relationship and that are common § Complicated customer
interdependence between vendor and needs
between the people in buyer or between § Large customers with
two organizations (Kotler, noncompeting vendors multiple locations
2017). and a common buyer.
(Kotler, 2017). § The need for technology
§ Highly interdependent
vendor/buyer relationships,
§ Intensified competition, and
§ Low profitability within the
hospitality industry
Recruiting and Selecting
Sales Representatives
A successful salesperson
has:
• Empathy
• Focus
• Responsibility
• Optimism
• Ego-drive
Source: Canadian Professional Sales Association
Managing the Sales Force: Selecting Sales Strategies
The following are 6 general sales strategies:
1. Prevent erosion of key accounts
2. Grow key accounts
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
Managing the Sales Force: Sales Force Tactics
§ Prospecting and qualifying § Negotiation
(sales lead generation) § Overcoming objections
§ Pre-approach (the salesperson or (the salesperson seeks out,
company identifies qualified clarifies and overcomes any
potential applicants) customer objections to
§ Approach (the salesperson meets buying
the customer for the first time) § Closing (a salesperson asks
§ Presentation and demonstration the customer for an order
(the salespersons tells the “value § Follow-up/maintenance
story” to the buyer showing how (the salesperson follows up
the company’s offer solves the after the sale to ensure
customer’s problems. customer satisfaction and
repeat business
Let’s pretend that a boutique hotel launched its property recently. The management’s
concern is to develop a sustainable revenue stream by promoting its rooms. They
need to grow their business and they can’t go beyond budget.
• GOAL: Generate PHP2M
monthly revenue and >50%
profit within 6 months.
• STRATEGY #1: Identify and
acquire a small set of
enthusiastic customers.
• TACTIC #1a: Determine themed
room enthusiasts in the area (via
vlogs, blogs, FB groups, IG, etc.) and
offer them a discount to try the room.
Managing the Sales Force:
Motivating a professional sales force
1. Sales force compensation (monetary)
2. Supplementary motivators (monetary
incentives, tiered commission, travel incentives,
recognitions)
Managing the Sales Force:
Evaluation and control of a professional sales force
There are several means of formal evaluation of performance:
§ Sales-to-salesperson comparisons
§ Customer satisfaction evaluation
§ Qualitative evaluation of sales representatives
§ Peer-to-peer sales
§ Networking
§ Salesmanship
Social Selling, Online, Mobile
and Social Media Tools
The use of online, mobile,
and social media to engage
customers, build stronger
customer relationships, and
augment sales performance.
Social selling can be an
important sales strategy, but
it does not replace face-to-
face selling for major clients
(Kotler, 2017).
LEARNING ACTIVITY : Module 7
Do the following:
• Conduct an interview with a salesperson for a hospitality or
tourism organization. This can be done online, via telephone
or via e-mail.
• Ask the salesperson about the job. Find out what a typical day
is like, and what they like and dislike about the job.
• Ask how they feel technology will affect the sales department
in the future. You may of course ask other questions that are of
interest to you. Write up your finding in a report.
