Introduction to Sales Development and Merchandising
Sales development and merchandising means acquiring more sales and profits by getting more customers (Hayes and Nenemeier, 2009). Every business should develop its sales by increasing the activities of the business. It all depends on the sales development team that how it reaches its potential customers with their products or services to satisfy them. Merchandising refers to planning and promotion of products to right market, at right time and by right people using attractive advertising and displays. In this report Montcalm Hotel which is five star hotels situated in UK.
Task A The Elements Of The Product In A Business And Services Context
A) The key components of the product of hotel Montcalm are its luxurious room facilities and the restaurant which serves lavish food and beverages to its customers. The main component of hotel is the room facilities which is given to the high class customers and have a brand name in the market (Tesone, 2005). It is famous for its luxurious suites which includes imported flooring and high class furniture which attracts the customers. Beside this the hotel is famous for its room service which gives its royal customers a sign of satisfaction and make them feel relax and comfortable. The hotel is also famous for its clean rooms which give the customers a healthy environment. In this hotel different ranges of rooms are available. Customers can demand according to their need and want. High price rooms which are at a great location gives a view of lake which can be seen through window. People take this room to spend their holidays with their family and find it a luxurious life.
Beside the room facilities given by hotel the other necessity that is given is of restaurant. Customer always demands for delicious and healthy food. It given be given by hotel with an open kitchen which can be seen by every customers that what they are eating is made in front of them. Hotel should include wide range of food items according to the taste and need of customers which can satisfy them and attract more customers to stay in hotel.
The product mix of Montcalm hotel includes its luxurious rooms and better quality services given to customers who help in increasing sales and profit of industry. It mean that if the customers are satisfied with the quality treatment they have got they will refer the hotel through word of mouth to others and this will increase in sales and ultimately revenue to business (Ransley and Ingram, 2001). The hotel should have high class room’s facilities which can fulfil the demand of its customers. The services given by hotel staff like room service to every individual client which can make him feel relax and comfortable. It will also include the food and beverages section of hotel which will also decide the growth of hotel and help in increasing sale and profit.
The hotel should include classic furniture and antique items in its rooms which attracts the consumers to purchase it. It should have different wall paintings which increase its value and customer demand to stay in that room. It should have different types of rooms available for its customers like suites which include all arrangements inside the room only. Customers should get high class treatment when they are spending huge amount for staying for a day or night in a particular hotel.
B) Segmenting the market means that the hotel should focus on their target customers who can purchase their high value rooms and can maximise their sales and earn profits. It means that Montcalm marketing department should try and focus on such high class clients which can give them the true value of their rooms and maintain the status of the hotel. It provides its President suites to such persons who fulfil that criteria and status (Forney Park and Brandon, 2005). Hotel should make a marketing strategy or tactic that involves the target market and divides it and now all the focus can be done on them to give them high class facilities and fulfil all their requirements. It will help the hotel in maximising the sales and earn revenues.
Market segmenting is an important part of business to perform well in terms of getting the targeted market and focusing on them by applying different strategies which helps the marketing department of hotel to segment the customers and give them best treatment to give them satisfaction and this will help the business in maximising sales from the other competitors and earn high profits (Wood and Brotherton, 2008). Montcalm hotel should focus to sell its President suites to such customers who are able and willing to pay for it. Such rooms cost a lot but on the other way it also gives high class facilities or satisfaction to customers. Market segmenting can help the hotel in knowing their target market and deciding the strategy to be focused on such customers who can purchase their costly rooms and maximise the sales of hotel.
Task B The External Sales Development Techniques
A) The buyer behaviour of consumers means that it is the decision process which is made by consumers when they are involved in buying the product or service. There are different types of factors that affect the buying behaviour of the customers (Sparks, 2001). For instance in Montcalm hotel service users has to decisions making while purchasing the product or service that which service has to be purchased which gives them more satisfaction and factors available which influence their buying behaviour.
Cultural factors- It means that cultural factors influences on consumer buying behaviour and affects their decision making process. It means that hotel cannot ignore the cultural factors like social class, culture and subculture. These all factors influence the buying behaviour of the customers and can affect the hotel if ignored. It means that various people come to hotel of different social class, attitude and culture. They should be given proper treatment to achieve the organisational goals (Ohai, 2008).
Social factors- This states the influence on purchase decision of individual directly or indirectly because of their family members, relatives, reference groups etc. Different persons have different buying behaviour and that affects the other persons purchase decision. Like if an individual wants to purchase the economical room in a hotel but due to influence from his reference groups or family members he has to purchase high cost rooms.
Personal factors- It affects the buying behaviour of an individual which means that it includes different factors like age, sex and occupation plays a vital role in decision making (Rehme and Rennhak, 2011). To purchase a service in Montcalm hotel different individual will possess different buying behaviour.
Psychological factors- These factors influence the consumer buying behaviour like motivation, perception and learning. People purchase the rooms according to their needs and wants. Here, they refer to Maslow’s Hierarchy of Needs.
B) The use of advertising media to develop the sales of the business can be done through advertising in newspapers, business magazines, hotel journals and advertising on screens and billboards (Seley and Holloway, 2008). For increasing the sales hotel has to set itself in the mind of customers through mouth publicity or sponsoring an event. The customers should know all the services provided by the hotel so that they make a mind to use it and hotel can increase its sales and maximise profits. Advertising media is the best way of communication to people that they can try or experience their hotel luxuriousness and communicate to others about their hotel environment.
Hotel should try to make a marketing strategy and contact potential customers and presenting their best class services for business meetings, dinners and conferences. They should take help of media to advertise the facilities offered by their hotel which will help in attracting more customers and simultaneously growth of business. Through this all facilities hotel can earn profits and maximise their sales (Weinberg, 2012). They should give discounts to their regular customers and also off peak discounts when there is no rush or advance bookings of rooms. Advertising can directly affect the sales development of hotel and increase in profits by making sales to potential customers.
C) External merchandising means that promote and display the product to consumers as such to maximise their sales and increase profits (Lea-Greenwood, 2000). It helps a lot in increasing the profits and also adding to increase the consumer base by giving quality service. Through external merchandising Montcalm hotel tries tom maximise its sales and increase customer and profits. External merchandising helps the hotel in various ways to retain the old customers as well as gain new customers by providing them better service quality. This helps in attracting more and more customers and increases a level of satisfaction among customers and they try to utilise the services again and again. It includes regular communicated with customers who help in knowing the feedback and this helps the hotel to improve the quality and satisfy their customers.
Merchandise can be different for different types of customers and availing different types of services of hotel. It can be like personalized merchandising which means that according to understanding the need of individual customer’s hotel satisfies their demands and earn profits. Mass merchandising means giving the same type of services to all the customers and targeting to them through a common strategy (Avail, 2013). Another type of merchandising can be segmented merchandising which means that different segments of consumers are targeted separately and different services and products are offered to them.
Task C The Internal Sales Promotion And Merchandising
A) The design and layout of the Montcalm hotel influence the customer to spend more. It means that luxurious facilities provided by the hotel helps the customers to spend more and utilise the services (Salisbury, 2000). There will be different users of the services given by the service providers. Consumers will see the location of the hotel and various other things before staying in the hotel. The hotel should be well build with all the amenities inside it to attract luxurious class of people. It should have other facilities for recreation and fun like private swimming pool, entertainment facilities and conference rooms. It will help in attracting the customers to utilise the services and spend more. The hotel should plan different strategies to get more customers and earn more. It should give discounts or offers at different time to its regular as well as other customers.
This all factors greatly influence the customers and help them in spending more for such luxurious life. Some people avail such service for sake of status and hotel has to fulfil all the needs of their customers to make them satisfy and maximise their sales. The location of the hotel should be very good which results in influencing more people to stay ans use the services of hotel.
B) Internal merchandising materials in the hotel include planning and promoting the hotel from inside only. The internal merchandising plan includes-
• Cohesiveness- The hotels internal merchandising plan includes a common place for all guests to have a contact. It should include sign or logo of the hotel and there should be a big electronic billboard which shows the daily routine (Maier, 2012). It can also include the table tent cards which show the availability of things to the customers.
• Condition- It includes that all the internal merchandising materials of the hotel should remain in good condition. All the materials like menu cards, guest directories and other posters should be kept laminated otherwise they will look shabby.
• Coordinated- It means that the internal merchandising materials should be well known by the other marketing planners. They should know about the events of the hotel and keep them updated.
• Cost effective- It means that to measure the number of sales before and interpret that this much sale will occur and to plan accordingly to remain cost effective.
Internal merchandising material should include all the necessary details to inform the customers about the offer (Nickson, 2013). The special offer for the day or any special drink should be but on the table tent cards. So, that the customers came to know about that and use the services effectively.
C) Promotion activities refers to the different activities to attract the service users and provide them or offer them good services for using and achieve the sales target.
• Direct marketing- To attract the business-class people hotel should provide them with different facilities like conference and meeting rooms. They are directly contacted by the marketing team and give them an offer to conduct an event in their hotel and they will give such discounts and offers which will be beneficial for them. It can be done through brochures, pamphlets and Emails (Link, 2012).
• Sponsorship- It means that it is a good way of promoting the hotel by conducting or organising various events or sponsoring it. Through this people come to know about the facilities of the hotel and this result in good customer feedback.
• Advertising- To attract different kinds of people advertisements of the hotel should be given in the newspaper, television and internet which help in promoting the service and target the market.
To attract more and more customer’s hotel should try to use different suggested methods which will help in increasing profits and maximising sales (Koontz and Gibson, 2002). Promotion can help increase in service users which will require better room’s availability and good quality of food.
Task D The Role Of Staff In Maximising Sales
A) Personal selling technique helps the staff of the hotel to communicate effectively with the service users to know their needs and efficiently fulfil it. For this staff of the hotel needs good knowledge about their products and services available to them and helps the customers accordingly (Wong, 2004). Through developing the relationship with customers hotel can attract more number of customer volumes. The hotel should choose right employees and train them properly to sale the services of the hotel to different consumers efficiently. Personal selling is an effective technique which is used for advertising the products to the customers and makes them use it.
It includes sales promotion activities which helps in increasing sales through giving customers various schemes and offers and through that customers feel satisfied and avail the services (Hunter, 2007). Public relations helps the business in growing their customers through giving quality service to them and maintain good relation with them so they feel satisfied with the services given. These all techniques are very useful for developing the sales and increasing profits through the help of staff. People who are working the organisation should be skilful and knowledgeable so to work effectively.
B) Operational design influences the organisations sales revenue through increasing its sales and getting more customers. It can be achieved by making certain changes in the hotel which affects its profitability. It should be made or designed in such a way that it increases the efficiency of the hotel and become cost effective. Hotel should avoid wastage of resources and become environment friendly by not polluting it. It should save the resources like switch off the lights when it is not necessary and save electricity (Fleischner, 2014). It will help the hotel in saving lots of money on electricity bills and become more efficient.
They can earn more by giving their extra space which is unused to do some functions or get together which will help in earning revenues. If the existing customers feel satisfied with the services given they will refer new customers with word of mouth publicity and that will help increase the brand name of hotel and also earn more profit by increasing in sales. The hotel should not waste the food in order to become cost effective and they should plan for the same. As per the requirement they should give orders to their staff to become effective and not to waste the resources.
C) The important principles which includes in a sales training program means that the employees of the hotel should be effective to sale the products or services of the hotel. It means that they should be given proper sales training to effectively done the sales with proper motivation and direction to achieve the desired targets.
- Attention- The employees should be effectively attained the training programme and pay proper attention so that they are able to increase the sales for the hotel.
- Curiosity- It means that employees should be very curious to learn different techniques to satisfy the clients and fulfil their demand so that they can easily achieve the targets.
- Effective communication- Through sales training staff should improve their communication because it helps in increasing sales and generating revenue. It should be effective to communicate with customers and give them proper information.
- Motivation skills- The trainers should motivate the employees to achieve the targets and work enthusiastically (Designs, 2012). It should be given in form of rewards and incentives.
- Presentation skill- It should be improved by attaining the sales training programme so to present the product and service properly to the customers.
Sales development and merchandising means to increase the sales and it is done by proper demonstration or promotion of products and services so to consume by people and hotel should maximise their sales and earn profits. Through this report it can be concluded that product and services which has been offered by Montcalm hotel. It discusses the key components of the product offered by the hotel and also the involvement of product mix to earn profits. It also covers the different factors that affect the purchase decision of the buyer. Further it includes the personal selling techniques used by the hotel to maximise the sales. And lastly various important principles are used to make the sales training programme effective.
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