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Chapter Seventeen The Communications Mix: Personal Selling Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Sales Process Prospecting Qualifying prospects The sales approach Handling objections Closing of the sale Follow-up Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Sales Approach Communicating with customers More important with supply exceeding demand Good salespeople are problem solvers Establishing long-term relationships with interdependence Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Sales Approach (cont.) Customer attitudes: – Skepticism – Misunderstanding – Indifference Probe for unrealized needs – Objection Usually cannot be changed Outweigh or offer an alternative Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Sales Approach (cont.) Closing Follow-up Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Sales Management (cont.) Product line management in hotels One representative services all three products: – Group – Transient – Catering Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition 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 07458. All Rights Reserved. Development of Personnel (cont.) Motivation – Need to be consistently motivated – Represent products daily – Pay tied to productivity or quotas Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Shoemaker, Lewis, and Yesawich: Marketing Leadership in Hospitality and Tourism, 4th edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.