Sales Developing and Merchandising - Assignment Example

Sales Developing and Merchandising By Other of Introduction In the modern business milieu, various aspects that range from online marketing, superior product differentiation, apt management strategies and good use of resources among others have created a competitive platform in the market. In the hotel industry, more players both small and large scale have heavily invested in various products that characterize this industry. This essay seeks to examine all the attributes that surround a hotel setting, particularly the one deals immensely in accommodation, food and beverages. This essay will explore the attributes of the product, external sales development techniques, the tools and techniques of internal sales promotion and merchandising and role played by the staff in ensuring the success of the hotel. The hotel under consideration is called the APA Hotels & Resorts. As a point of departure, the APA Hotels & Resorts are headquartered in Japan. This hotel has a slogan that assures the clients top quality products and services. The hotel endeavours to attain non-nonsense frugality. A long side the normal services that are offered at a cost, the hotel offers a free breakfast. The rates are affordable. They range form 5500-14000JPY. The hotel has over 76 properties well spread across various nations. The attributes of the product The hotel offers a wide range of accommodation facilities, which range from a single executive room for one person to double executive suite for two people. Consider the following cost of various classes of accommodation. Imperial suite 290,000yens and 300,000 yens for two Executive suite 140,000yens and 150,000 yens for two Presidential suite 140,000 for 1 person and 150,000 for two West Wing 26,000 yens for one person and 30,000 yens for two In essence, the nature of products and services offered form a fundamental basis in which the organization creates its market niche. The larger the market niches the more the revenues. Essentially, in the hotel and & hospitality industry, the competition among the primary players depends on the quality of the products and the nature in which they are presented to the clients (JONES & LOCKWOOD, 2004). Giving more insight on the manner of product presentation in the modern business milieu has taken a technological dimension, which has seen numerous organizations embrace internet marketing and distribution. In the hotel industry, the hotels and resorts use internet application in creating channels, which help in the overall management of the organization (ANDREWS, 2009). The aspect of product differentiation is attributed to this context where the organizations such as the APA Hotel and Resort use the best procedures and superior raw materials to produce unique products. It is imperative to note that product differentiation helps APA Hotels & Resorts to identify itself in the market. This aspect brings us to the essence of market segmentation in the maximization of sales of the APA Hotels & Resorts. TASK A: Market segmentation and its contribution to maximization of sales in APA Hotel & Resort Market segmentation refers to the approach an organization uses to divide its market niche according to the various desires of the clients. In addition, market segmentation can imply the specific class of group of clients an organization targets (ANDREWS, 2009). It is necessary for an organization to identify a class or segment of its clients in order to have insight of the clients’ preferences relative to the market dynamics such as demand, supply and even the taste trends. In the case of the APA Hotel & Resorts, market segmentation is a fundamental tool since it segments the clients into various classes, which include the business class, political and dignitary class. The listed classes of accommodation such as executive, presidential suite and Imperial suite dignifies the nature of the clients that APA Hotels & Resorts segments in its broader strategic management approach to product differentiation. This class of clients form the most expensive segment in the hotel and hospitality industry, and makes the organization more profitable and competitive in the market. It is necessary for an organization such as APA Hotel & Resort to identify a clear-cut market segment to ensure that, the market dynamics relative to other players (ANDREWS, 2009). A good process of market segmentation is always done after doing an apt market research relative to the various products and services that are offered to the clients by diverse players in the market. This helps in the implementation of appropriate pricing which influence the upward sales grid. In essence, market segmentation in the APA Hotels & Resorts contributes immensely to high sales since the market segments are well served and the cost is directly proportional to what the clients gets (JONES & LOCKWOOD, 2004). This increases the market niche within the market segment and this leads to increased sales thus increased revenues. TASK B: Description of external sales development techniques The external sales development techniques refer to the approaches used by the management to ensure that when the products are in the market, they sale. These techniques include the production of products or services according to the clients’ requirements. This implies that the management should ensure that, the client’s objective is well understood before offering the service or product. APA Hotels & Resorts full understands the needs and objectives of their client segment and they always meet their expectations. This is the sole reason why the clients recognize APA’s services and products when displayed in the market platform through either the internet marketing channels or physical presentation. Further, the organization applies online market advertisements of the products and services offered (ANDREWS, 2009). The clients peruses over the APA’s website to get information about the services offered. Booking and payment is done online. These are some of the external sale development techniques used by APA Hotel & Resorts to keep its clients informed about the present dynamics in the market milieu. This keeps the organization at the competitive edge. Use of external Merchandising to increase the sales volumes The management of the APA Hotels & Resorts have integrated its services and products in the online platform. This nature of advertising makes its merchandising easy and thus helps in reaching a large audience of clients. Essentially, when a client base is large, it implies that the sales increase. In the case of APA Hotel & Resort, these external merchandising techniques have seen increase of revenues by 4.4% in the previous year (ANDREWS, 2009). TASK C: Internal sales techniques The traditional sales techniques have been surpassed over time by the insider sales methods especially in the hotel industry. The use of web conferencing and the telephone to remotely sell the products in a hotel industry has enabled quick generation of revenues and significant reduction of costs in the hotel industry. The revolutionary shift that has been seen in the hotel industry requires set of skills. Required internal sales techniques The following internal sales techniques have helped the APA Hotel & Resort to compete effectively with other players in the industry. Pre-call research It is recommended to carry out pre-call research before calling a busy decision maker in the hotel industry. The message conveyed should be precise and relevant. Too much time should not be allocated for the research as this may lower the call volume below acceptable levels. The pre-call research helps to identify the prospects and the business needs (JONES & LOCKWOOD, 2004). Asking objective questions Two important things are accomplished by objective sales questions in hotel industry thus, they keep the prospects to engage in the discussions, and they offer valuable information that one can use to understand the prospects and to help advance the sales level in the hotel industry. One needs to ask the questions that build rapport and those that make people to think of a problem and how to solve the problem. Presentation skills The sales presentations in the hotel industry have drastically changed. This has been contributed by the inside sales emphasis. It is easier to gauge the prospects when on one-on-one by giving attention to their body language and gestures. Discipline Inside sales is considered a science where one follows best-proven practices. It does not involve any magic portion and one needs only data to carry out a service. Discipline in the hotel industry involves immediacy, persistence, and direct dual numbers. These guidelines are easily followed when one has discipline and helps to manage time wisely. Social selling This is required in the hotel industry and stretches far beyond pre-call research. It is good to have a good profile of the industry on social sites like the LinkedIn. The prospect customers carry out a lot of research on the hotel industry before they can purchase any commodity. APA Hotel & Resort has to identify the industry influencers and the relevant content to ensure the right information is presented to the client audience (JONES & LOCKWOOD, 2004). Influence of design and layout on customer spending Various approaches have been used to design the interior and the environment of the industry in order to generate more sales. The following are some of the interiors that attract more customers in the hotel sector, which APA Hotel & Resort has successfully embraced. Well-refurbished threshold Threshold is the decompression area where the prospective customers first enter into the hotel (JONES & LOCKWOOD, 2004). It should be well refurbished as customers first judge the hotel by looking at this area to predict whether the sector is cheap or expensive. Check on how well the lighting, and displays are coordinated. The APA Hotels & Resort have well-refurbished rooms and this ups its threshold in terms of the first impression created. Locating the serving point and the shelves to the right When most people enter into the hotel industry, will unconsciously turn to the right and the wall to the right acts as the power wall. The right section of the hotel building should be given special attention Effectiveness of internal merchandizing materials Internal audit effectiveness It is necessary to understand the effectiveness of internal audit in the hotel industry. The findings illustrate three primary effectiveness of internal audit, which include outside audit versus internal audit, objectives of the internal audit, and competency of the staff. Defining the internal culture of an organization The industry should define who they are and the goals that they want to achieve. The APA Hotel & Resort have a culture of always offering the best services and products in the market. This culture identifies the organization. The employees should be made to understand what makes the industry unique and let them be part of it (JONES & LOCKWOOD, 2004). This helps enhancement of the culture thus promoting sales. Different promotional activities The APA Hotels & Resorts have embraced the following activities, which have increased the market niche and thus increased sales volumes. Contests The hotel management frequently organizes the contests, which do not require purchase. Contests are used to promote the brands of the industry and to have the logo in front of the citizens. The industry organizes the contests and this helps to bring the attention to the customers based on the products offered. Customer referral program The hotel industry encourages their customers to refer new clients and they are offered incentives. The incentives include cash rewards, free products, and discounts on the items they buy. This promotional activity is used by the sector to leverage its customers as sales force (JONES & LOCKWOOD, 2004). Task D: Role of staff in sales The primary role of staff in the sales promotion in the hotel industry involves income and revenue generation. The sales team work jointly to increase awareness of the services offered by the hotel. The sales force helps to build trust in their customers by engaging them at all times. Consistent communication and follow-up helps to engage the customers as well as through promotions and discounts (JONES & LOCKWOOD, 2004). Personal selling techniques Personal selling is a strategy used in promotion where a salesperson makes use of the techniques and the skills to build good relationship with other parties. Salesperson values are realized in the financial rewards based on sales and value of the customer is seen from the benefits that the customer gets from consuming the product. Selling techniques involve contact between the seller and the buyer face-to-face meetings and telephone conversations. The techniques involve prospecting and evaluating, approaching the customer and making the presentation, after sale service, maintaining contacts and low pricing strategy. APA Hotel & Resort has embraced these approaches (JONES & LOCKWOOD, 2004). Influence of operational design on sales revenue A well operational design increases the sales revenue in the hotel industry. Better operational designs attract more customers, it controls the cost and increases the communication between the staff and the customers. Principles included in the sales training programme Sales training is an essential part in the hotel industry. The training should be built based on incremental growth concepts of the industry. The training plan should contain the behavioural plan that helps the salespersons to blend well with the customers. In addition, the programs contain negotiation skills, persuasion skills, presentation skills, and management skills. Conclusion In conclusion, the APA Hotel & Resort should endeavour in applying the aspects product differentiation, market segmentation, internal sales techniques, and external sales techniques to ensure that the sales volumes are maximised. In addition, these techniques will enable the organization to open up its market niche and expand its’ clients base. This will continually put the organization in the competitive edge with other players from the same industry. List of References JONES, P., & LOCKWOOD, A. (2004). The management of hotel operations. London, Thomson. ANDREWS, S. (2009). Sales and marketing: a textbook for the hospitality industry. New Delhi, Tata McGraw Hill Education. Read More