Case Study on Sales Development
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11067 Downloads I Published: 14 Apr ,2017
Sales development is the process of increasing sales by targeting the prospective customers with the help of promotional activities. It ensures the survival of hotel because influence is on account of the volume of customers; prices paid by them as well as level of satisfaction (Seley and Holloway, 2008).
The current study deals with Marriot which is an international hotel headquartered near Washington, DC in Bethesda, Maryland, USA. It has many branches over 73 countries. Various measures taken by the organization contribute to business and affect its sales and profit. As sales and profit are the main goal of any business and Marriott keep on trying to achieve these aims by adopting various strategies. The target of hotel has been on superior visitors only who can pay the premium prices (Kauffeld and Willenbrock 2010).
So these strategies makes huge different for Marriot in many ways for increasing customer volume, sales, profit, goodwill. Sales development is the aim of Marriot. It invests on various activities for increasing sales Marriot is getting popularity for its layout, design, ambiance which is helpful to maintain competitive edge in the market (Shah, 2010). By all these function performed by the Marriot it is capturing market share and attracting customers towards it.
Report states about the sales development of Marriot like how hotel can increase sales. Focus has further been given on how segmentation, product mix, promotional activities, training and media are contributing for sales development. So this report explains about completion of the goal of Marriot and its impact for same (Ohai, 2008).
Product is an item made for meeting customer’s requirement. It is in the form of physical and intangible such as services and food offered by hotel. It generates revenue for the firm assists it to survive in long run. Every manufactured goods has its key component such as core benefit, actual and augmented product. Food and beverages is one of the products of Marriot hotel. This has key components in form of healthier food, as per the choice of the customers, freshness which are the core benefits of the product (Lewis and et. al., 2008). Actual creation is that which Marriot hotel provides to the customers as it is made for them so this which makes great impact on the customers. Its visible influence is more important so that it should be as per the need of customers. Marriot hotel delivers good food to the client as per their demands so that they can be satisfied with it (Moliner and et. al., 2007). This is made from the core benefits which motivate customers for purchasing. This affects the company’s goodwill because it portrays company’s image in front of public and this is the way to get attention of people.
Marriot hotel concentrates on the quality as it is the main feature for actual product. The company under study affects its buyers by product feature, prices, packaging etc. Many times they demand for the delivery of food at home so packing and time taken for delivery also needs to be considered. Food and beverages of Marriot hotel have its third element as augmented product, states about the decision of repeat purchase. Under this customer decides for the future buying by the services provided with it. These are accessibility to creation, complementary manufactured goods, customer services etc.
Product mix is the number of product line which is spread in overall market. It includes width, length, depth and consistency which give details about product lines, variations and similarities among services offered by hotel. Contribution of product mix to sales and profit of Marriot hotel is quite significant. Marriot hotel’s product mix helps to make new customers and retains existing one as well as ensure their satisfaction. The firm provides many services along with the product which makes customers happy (Chavan, 2010). It makes them agree to pay high for those services which lead to increase in the profit. Marriot hotel provides food to customers at their home also and for it, the firm concentrates on effective packaging, timely delivery which leads to increase in sales. Marriot provide food services to all type of customers whether they are staying in the hotel or not. Hotel avail various kind of facilities to deliver food to the customers such as self, table, assisted services (Geiger and Guenzi 2009). By this entire mix of Marriot is attracting customers towards it and providing them right product which leads to growth of Marriot. As Marriot is luxurious hotel and provide premium services and customers also pays high prices for having these from it so Marriot is getting good profit. Marriot is situated on good location which matter for the customers who leads to increase in the sales of Marriot.
Marriot is very good hotel in all perspective such as it is keep on changing and serve to community also and work with integrity which helps to capture market share. Marriot captures huge market share that leads to increase in the sales as well as profit (WEINBERG, 2012). Profit and sales maximization is main goal of this so that is can grow that’s why it provides quality product. Hotel welcomes customers very well and it shows them, that they can deliver everything that leads to increase the sales. As product have different prices for extra facility and services provided which makes it more costly and effective which induce buyer to purchase and this results in the profit maximization. Ultimately Marriot is dedicated to customers. So product mix contributes very much for maximization of profit and sales.
Elements of product or services of hotel’s such as distinctiveness of infrastructure, uniqueness and various styles to serve food for catering requirement of different types of customer. It induces buyers to access services from this hotel which leads to retain customers. They adopt effective styles for packing meal and ensures timely deliver which creates image of company and helps to increase sales as well as profitability of firm.
Market segmentation is they way to divide overall market into several parts by keeping in mind requirement of customers. It is firm’s strategies for covering wide potential area for having access to different types of clients. There are four types of segmenting market which includes demographic, psychographic, geographic and product benefit. Firm targets its market on the basis of demographic by focusing on couples, families, higher level of income group. It follows segmentation by emphasize on tourists and travelers which have higher interest towards services provided by hotel. It provides product benefits by adding more features in the services such as parking facility and garden facility for children. It helps company to concentrate properly and to access to overall marketplace. Marriot also focus segment wise so that it can capture potential market. It segment and then selects its target souk which leads to increase in the sale and pays more concentration on tourist because they mostly require these facilities (Seley and Holloway, 2008). Marriot make division as per the customers need so that it can capture overall marketplace with good potential. It emphasizes on particular division with different brand and employs skilled employees so that it can achieve the target goals (Ohai, 2008). By appointing good manpower and proper promotion segment Marriot is achieving its target goal because it is dedicated to superior customers who pay more for the services. So this way it helps business to increase the sales. It provide the clear picture of the market and by that way company can take corrective step also to prevent decrease in the sales. Marriot can segment its market in such a way like solo travelers, couple, families, and business travelers so that it can prepare everything in better manner for the proposed customers. By this customers as well as hotel staff will save their time and they will avail quick services to customers which result in sales maximization (Matthyssens and Johnston, 2006).
There are various factors which affects buying behavior of consumer (Shah, 2010). Everyone is different from other and they have different requirement. Factors which influence buyer’s behavior of Marriot are as follows-
Cultural factors- These are related to values and norms, culture, subculture, social class. These factors are inherent and they affect buying decision to a great extent. There are several types of customers and they belong to middle , lower and upper class which affect their buying power and their willingness to pay for the product
Social factors - These covers family, status, roles, reference group by which customers is greatly affected towards the product. Many times families move out and they prefer hotel as per their status and pays the higher prices to maintain their status. Reference group is also affecting it as customers come to know about the product information through them (Chavan, 2010).
Personal factors- These include all the information related to customer’s age, occupation, education, marital status, life style, personality. So as per these factors their purchase decision keeps on changing (Matthyssens and Johnston2006). Like if one have job then it will affect purchasing decision and he can be ready to pay for the higher prices to have services at Marriot.
Psychological factors- It states about customers learning, belief, attitude, their involvement, motivation which affect the buying decision. Under this various factors affect when a customer go for purchase decision like his attitude towards the product and his learning from the purchasing a particular item for consumption (Moliner and et. al., 2007). These feature affect the buying behavior of customers like some customers have negative attitude towards the hotel industry and they don’t want to pay higher prices whereas some people are satisfied by paying for the quality services.
There are various advertising media which Marriot can use for sales development such as Television, internet, sponsorship, direct mail, mobile devices and print publication. These will help Marriot to increase its sales to a great extent because by this customers can know about the new launches and all other information (Lewis and et. al., 2008). As Marriot concentrate on tourist and travelers so it can use internet, print in the magazines and it can use mobile devices as well.
By these media it will achieve its targeted customers because traveler prefers magazines and internet so that they can easily come to know about the ad given by the hotel (Randall, 2009). These types of media can help Marriot to increase its sales because this is the good way to target the potential customers and making them aware about the new products or services. Marriot uses television and mobile devices also for its advertising as it aims to attract younger traveler. So these advertising media are suited to Marriot by which it can easily boost sales and can have new customers as well. This way Marriot will grow at rapid speed and it can retain its existing customers as well as can make new customers.
Merchandising plays vital role to maximize the customer’s volumes because it is the way to attract the customers towards the product. It includes free sample, special offers and other activities for promoting sales. By these activities Marriot offers discount and special schemes to attract consumers. Generally new clientele try to purchase the product in this kind of schemes and they come to know about the manufactured goods. Once customer know about the quality of it and services provided by the Marriot they can make decision for repeat purchase also (Matthyssensand Johnston, 2006). Marriot provides discount also in off season which increase volume of customers because hotel displays other goods also when they come.
It stimulates them to buy the products which leads to increase in profit as well as sales. Marriot hotel should use these schemes in such a way that they can use their money in right place and can obtain huge mass. So these are the good way used by the Marriot for increasing the volume of consumers because they want to have high quality in reasonable prices. Hotel Marriot attracts customers by offering them lower price in special occasion which result in their awareness towards another quality product also. By this they get attraction towards Marriot hotel which leads to increase in their volume.
Design and layout plays important role to influence the customers. It includes color, style, lighting, furnishing, accommodation facilities etc. Marriot hotel is at lucrative place which attracts consumers towards it (Martin, 2007). Customers generally pay for the good ambiance and their satisfaction level which they get from the hotel. They get this ambiance by hotel layout and design (Juliana, 2013). It makes hotel looks superb and that’s the thing what customers look for. Marriot have excellent and unique appearance which stimulate people to spend more and visit it.
Marriot has exclusive infrastructure. It uses traditional lobby, combining dining, meeting and reading place and well furnished rooms, bathroom, wardrobe which induce buyers to pay more. Proper lighting, colors, design of gates, window, and bed everything at Marriot make them happy. As these directly affect the consumers and make them internally feel good to have such environment which results in their willingness to pay for that (Moliner and et. al., 2007). Clientele get higher level of satisfaction by visiting the Marriot hotel because the services provided by them. Its design layout is slightly different from others. Marriot keep on innovating its infrastructure to maintain its uniqueness and increase the clients. So they pay premium prices for the services and environment provided by the Marriot.
Internal merchandising materials are those which help services providers to attain their customers. It includes guest service directories, electronic marquees, and table tent card, lobby posters. These are important to increase the volume of consumers because it shows the hotel’s reputation and image of business. Under this Marriot uses those elements which induce customer to come in and take services Marriot. For this Marriot adopts various above mentioned schemes and apply these in such a way so that it can directly increase the volume of consumers. As these schemes provides information of events and activity of hotel. These material should be effective and coordinated so that it can be used in long run and there is no wastage of money and time. It must be deliver accurate information to the buyers so for this messages should be written short and simple which can be easily understood. Posters should be used in such a way that it can make good impression of hotel, it must be properly locked and use wooden back support so that it looks attractive. These cards and posters, and messages contains logo of company, brand name etc. Main purpose of internal merchandising is to attract clientele, greet them very well and welcome them in the Marriot. So these should be form in such a way which can provide outcome to company with cost effective efforts.
Promotional activities for Marriot are those which are performed to attract the customers towards it and increase the sales. It includes special offers, events and public services announcement (Law, and et. al., 2012). These activities are performed as per the season to capture the market share and increase the sales. Hotel offers family package, discount in off season, and various occasional benefits. Therefore company should use these activities by keeping in mind about the cost, time, and optimal use of resources. Like, Marriot offers discount in off season and provide family package for vacations. This way it selects activity as per the scenario which can help to achieve higher profit as well as it creates goodwill of the company.
It is recommended to Marriot that it should not offer too much promotional activities because it is already performing very well and has a good media (Värlander and Yakhlef, 2006). This is keeping on providing information about product and services. So hotel is already capable and it has good market potential so there is no need of too much promotional activities. This is targeting on superior customers such as, professionals, travelers and tourists which are ready to pay higher for the services provided. That’s why Marriot should perform these kinds of activities very less. This will save its cost and time as well. It can investment these in some other profitable activity which can increase its worth at rapid speed.
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Personal selling techniques are those which help in reaching the customers directly for sale to the product and services. Marriot uses various personal selling techniques such as sales calls, telephone selling, internal selling and entertainment.
Sales calls- This is day to day work of sales person of hotel. They are given target on weekly or daily basis and to complete this target they make many calls and contact to customers. In this personnel goes to outside area also so that they can be in touch with the prospective customers (Kauffeld and Willenbrock 2010). For this they visit to various commercial organization and companies, traders’ merchant and social organization like club, so that they can have interaction with the clients and influence their buying behavior.
Telephone selling-Under this, employees need to make call to customer and they have to recognize consumers need quickly. Sales person must possess the quality to talk in buyer’s language so that they feel good and they can clearly place their order (Weng and Cyril de Run, 2013).
Internal selling-Internal selling is the way to increase the spending of customers and is done on the existing buyers (Gordon and et. al., 2012). By providing line of product and giving information about another item for consumption or services customer can get attraction towards those services.
It is recommended to Marriot to emphasize on internal selling and sales calls so that they can perform well because they target to those who can pay premium prices (Johlke, 2006). These are the good techniques which can increase the volume of customers which leads to increase in the sales as well as profit.
Operation efficiency of hotel Marriot has great impact on its sales revenue. Marriot has good operational design of the overall department, kitchen, food and beverages, front office, security (Pareigis and et, al., 2011). So this leads to proper management of all the affairs which result in satisfaction among consumers. Instead of clients satisfaction it becomes convenient for employees also to work properly. So it matters a lot because this saves time as well as cost of the employees and clients. By the proper design of it, employees or workers can deliver services more frequently which leads to achieve buyer satisfaction. Visitors satisfaction, cost saving, time saving all these factors assures about the higher sales revenue. Marriot hotel have its good operational design which attracts regulars as they get good ambiance here (Värlander and Yakhlef, 2006). So operation design plays a vital role and Marriot have good command. This is the reason it is earning good amount of profit in the form higher sales revenue.
Sales training program is the most important part which is performed by every organization. Aim of this program is to educate the sales person so that they can get achieve the target and can increase the sales of company (Nisco and Warnaby, 2013). Marriot should include following principles in sales training program.
This report concluded that product mix, selling techniques and various training principles leads to increase in sales as well as profit of the Marriot hotel. It is stated under this report that marketing strategies plays a vital role in the success of Marriot hotel so that it can build its goodwill and can survive in the market for the long run. Therefore Marriot hotel need to focus only its particular area like tourism and travelers. As Marriot is luxurious hotel so the study revealed that it should concentrate on its superior customers more precisely and there is no need to invest on the other segment because it is capturing its market potential.
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