Sales development is linked with the ways employed by organization in order to enhance its sales volume in the market. Further, in the modern era companies operate in high competitive market and due to this reason it has become little bit difficult to survive in the market for longer period of time (Porter, 2014). Apart from this, substitute of products are easily present in the market due to which every company has employed effective ways with the aim to target its customers by offering them best product. In short, target market prefers to purchase commodity which can provide them value for money experience. Further, various components of products and services are present which encourages target market to buy the commodity and it directly has positive impact on the entire firm in terms of rise in sales volume along with profitability.
Apart from this every organization segments its market by considering various criteria and through this it is possible to maximise sales volume (Armstrong and et. al., 2014). Segmentation of market assist in better understanding of actual requirement of the customers and in turn encourages target market to be brand loyal towards company. On the other hand, promotional tools are most commonly employed in the modern era where advertisement and other form of media provides base to company in enhancing sales and customers can easily acquire knowledge and information regarding product range offered by company. Moreover, personal selling techniques are also regarded to be fruitful and it directly leads to rise in satisfaction level of the customers (Cross, Belich and Rudelius, 2015). Key benefits present in the product are highlighted by company through which it becomes quite easy to enhance sales volume and is profitable for business in every possible manner. For conducting the present study organization chosen is Holiday Inn which operates in hospitality sector and well known in the market for the range of products it offers to its target market. Company offers wide range of services such as food, lodging, meetings, time shares etc and is efficient enough in meeting with the requirement of target market. Various tasks have been covered in the study which involves factors affecting buyer behaviour, how market segmentation contributes in maximising sales etc.
Task A: Element of Products in Business
1.1,1.2 Key components of products and how product mix contributes to sales and profit
Different components of products are present which are offered by Holiday Inn to its valuable customers and this allows business enterprise in satisfying need of its target market in efficient manner (Fleck and Kraemer, 2014). Further, company operates in high competitive environment due to which highlighting key components of products is must. Key components of product offered by Holiday Inn are as follows:
Core product: It is the benefit obtained by purchasing services of hospitality enterprise. Further, it is considered to be one of the main element and is valuable for target market. Services offered by Holiday Inn to its target market offers large number of benefits such as value for money satisfaction, high quality etc. Apart from this services demanded by customers are present everytime and this enhances overall satisfaction level of the target market (Geiger and Turley, 2005). It is intangible in nature and supports organization in gaining competitive advantage. Further, company like Holiday Inn has employed product differentiation as a strategy due to which it is possible for business enterprise to enhance satisfaction level of its target market and this in turn acts as an development tool for the entire company. Management is efficient enough in providing every type of convenience to its customers in terms of wide options when they have to purchase commodity and stores opened worldwide which allows customers to purchase services of Holiday Inn on a continuous basis.
Augmented Product: It arises by themselves and by products of core and actual products. In short with the help of augmented products more convenience is provided by management to its target market (Hill and Hill, 2012). Holiday Inn offers different type of services to its target market and before purchasing any commodity customers are having many kind of queries in their mind and to resolve such queries full assistance is provided by enterprise. Further, time to time feedback is taken by company in order to identify whether its target market is satisfied with the range of commodities offered or not.
Actual Product: It is regarded as the tangible, physical product. In case of Holiday Inn company does not offers product and only large number of services are delivered to target market. Therefore, the services offered to them only provide them remarkable experience and in turn it supports in enhancing satisfaction level of target market. So, the concept of actual product is not applicable in case of Holiday Inn (Kanagal, 2014).
Product Mix: Holiday Inn delivered large number of services to its target market offers large number of products to its target market and it is one of the basic reason behind rise in level of customer satisfaction. Further, organization is being able to strengthen its customers base and it is acting as an development tool for the entity. Products mix involves all the range of services offered by organization for sale. Further, it takes into consideration one line products or several (Shank and Lyberger, 2014). Every service offered by Holiday Inn is effective and it involves lodging, conventions, meetings etc which directly matches with the need and requirement of target market and is effective enough in satisfying need of customers. Product mix relies on three main aspects which are width, depth and consistency. Width of the product mix can be determined by the number and variety of product line offered by enterprise.
In short it highlights the diversification of organization activities. Holiday Inn range of service involves food, lodging, meetings, timeshares etc. This directly assist enterprise in serving its target market in better manner where different options are provided to customers and they can easily purchase commodity which best suits with their requirement. Service line of organization involves several items and this is the main reason behind success of company in the market (Sultan and Rohm, 2005).
Time to time new services are added in the existing range by organization due to which customers are having large number of options at the time when they take decision to purchase commodities of Holiday Inn (Tonnis, 2007). Therefore, through this it can be said that width, depth and consistency in services of Holiday Inn is effective due to which company is able to target its customers in effective manner and it has enhanced overall performance of firm in the market.
1.3 How market segmentation contributes to maximizing sales
Market segmentation is regarded as the process of dividing market which can be on the basis of demography, geography or psychography. Further, it provides base to organization in targeting its valuable customers in appropriate manner. Need and requirement of customers changes over a period of time and due to this basic reason it is required for enterprise to segment its market as it can act as source of attraction for its customers (Parker, 2013). Moreover, appropriate segmentation of market assist enterprise in targeting customers as per their actual need and requirement. At present Holiday Inn has segmented its market on the basis of demography and lifestyle where products are offered to customers only after knowing their actual requirement. This allows company to enhance its overall performance in the market and in turn acts as an development tool. Moreover, selection of appropriate market segmentation strategy has assisted company in maximising sales volume.
Through segmentation organization is able to focus on its target market and their actual requirements are known easily. Further, organization introduces new service on continuous basis and by segmenting market it becomes quite easy to decide the range of customers who can be targeted in appropriate manner. In short without appropriate segmentation it is not at all possible for enterprise to target its customers (Meenaghan, McLoughlin and McCormack, 2013). Segmentation supports in effective advertising as same promotional activities are not at all effective for every type of customers. Therefore, advertisements are designed in unique manner and through which management is being able to enhance overall sales volume. It has also provided base to business enterprise in understanding about customers trend which also changes over a period of time. Further, product modification is possible and through this challenges present in business environment can be faced easily. On the other hand, every customer present in the market has some sort of expectations from target management and due to this reason they are segmented so that business can focus on their needs in appropriate manner (Jensen and et. al., 2015). Therefore, in this way market segmentation has provided base to organization in maximising sales volume and in turn has assisted to perform better in terms of rise in market share along with prof