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Transcript
Chapter 15 Sales Promotion, Merchandising and Personal Selling Learning Objectives 15.1 Understand the concept of Sales Promotion and Merchandising Know about how these concepts are used to achieve Personal Selling Understand the various Sales Promotion Methods used in travel and tourism Know about the steps in planning and evaluation of an effective Sales Promotion Why Sales Promotion and Merchandising? The perishable nature is the peculiar characteristics of travel and tourism business. This uniqueness of tourism products keeps the marketing professionals thoughtful. They are always engrossed with a need of demand control or to manipulate demand. Thus need of sales promotion and merchandising is felt. Sales promotion and merchandising is generally done in response to various circumstances and events or demand changes or fluctuations occurring periodically (daily, weekly or seasonal). Sales promotion and merchandising methods are especially suitable for such short time demand changes. These are essential weapons in the marketing armoury of most travel and tourism businesses. Essential characteristics of sales promotion and merchandising are defined as: Sales promotion and merchandising are parts of marketing communications other than advertising, PR, personal selling, and sales literature. They are techniques primarily designed to stimulate consumer purchasing and dealer and sales-force effectiveness in the short-term, through temporary incentives and displays. Sales promotion and merchandising is done mainly at POS, point of sale locations. It covers different kinds of location, each with very different marketing requirements. These POS locations could be: External POS Internal, ‘in-house’ (or ‘on-site’) Customer’s location as POS The Customer itself Sales Promotion and merchandising is normally aimed at different customer groups such as: Individual Customers as Buyers Distribution Channels Sales Team Marketing Objectives (to be realized) by Sales Promotion are: 15.2 Sales revenue targets and variance analysis. Issues related to over- or under-capacity utilization. Measures undertaken by the Competitors. Other business environment factors representing unknown threats or opportunities. Difficulties in distribution channels Sales Promotion Methods used in Travel and Tourism Typical promotional techniques used in travel and tourism industry are for different customer groups listed above are: o o o o o o o o o o o o o o o 15.3 Competitions Offering free gifts Reward schemes for regular customers Lucky Winner Prize draws Price reduction Discount offerings Disguised price reduction More product offerings More incentive in the form of trade margin and / or more commission Special events like receptions / parties Lucky Winner Prize draws Travel vouchers Food vouchers Gift vouchers Bonuses and other incentives Planning and Evaluating Sales Promotions Planning and evaluation of sales promotion involves following Activities: Making use of yield management schemes in working out sales that sales promotion activity is likely to be achieved in a specified (promotion) time period. Estimating potential sales as a result of achieving the sales promotion. Identifying the customer profile of the groups to be selected for sales promotion and detailing of the same based on marketing research. Selection of types of rewards those appeals to the target customer groups. Designing and implementation of action plans and its coordination with other promotional factors. Monitoring and evaluation of the results achieved. 15.4 Personal Selling Personal selling is direct interaction between buyer and seller. It could be face to face, by telephone or through video-conferencing. In general, personal selling highlights the fact ‘doing the business’ resulting in actual sales transactions. The emphasis is on customer retention, building relationships and solution-driven selling, and not the one-time sales. Personal Selling functions can be grouped are: Influencing the purchase more services and products (goods) Enabling and facilitating B2B Purchases Significant Purchases - higher in value terms Taking the help of distribution channels to encourage purchasing 15.5 Responsibilities of the Sales Team in Travel and Tourism As applicable to all industry sectors, the efforts of sales team is the mainstay for achieving actual sales. It is also true for the travel and tourism business. In this context typical responsibilities for the Sales Managers and the Sales Team are: Sales Managers Sales Team Members Formation of Sales Team as per the Undertake Marketing Research requirements of Company Administration Hiring Sales Team Skill Improvement Inspiring and Rewarding the Sales Business Development Team Customer Servicing Supporting Activities Negotiation Monitoring, Evaluation and Control Scheduling and Planning