Sales and marketing
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CALCUTTA BUSINESS SCHOOL
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Sales and marketing
- 1. Sales & Marketing of Hotel
- 2. Presented by •Abhirup Sarma Pathak •Aindrila Sarkar •Aparupa Dutta •SofiarRahaman •Supriti Garai •Trina Ghosh •Zinia Sen
- 3. The Front Office Identify and cultivate clients Manage hotel’s marketing efforts Set rates to maximize RevPar Negotiate sales contracts on behalf of hotel Serve as a leader to hotel’s sales & marketing team Roles of Sales & Marketing Sales Activities related directly to servicing consumer demand & booking clients Roles of Director of Sales & Marketing Marketing Activities designed to increase consumer awareness & demand by promoting & advertising hotel
- 4. Planning hotel’s sales and marketing strategy Preparing and issuing sales contracts in timely manner Maintaining accurate sales records, forecast and histories Coordinating and communicating special client requests with affected hotel departments Hosting clients during their stay Conducting site tours Front office Sales & Marketing Roles of Sales & Marketing: In the Hotel Transient roomsInfluence Group saleInfluence Tasks of Sales & Marketing staff with their group sales focus
- 5. Roles of Sales & Marketing: In the Community Two sales opportunities Promotion opportunities When DOSM and Sales team are active members of the business community (e.g., local Chamber of Commerce), disseminating info about hotel’s products and services is allowed. Networking opportunities Development of personal relationships for business-related purposes will result in increased numbers of sales calls. - Convention and Visitors Bureau
- 6. Segmentation of the Sales & Marketing Dept. product designations becoming sales specialty areas Segmentation based on: By product(s) sold By market (market segment) By distribution network type of guests (clients) who buy the product “how” the hotel’s sales (products) are made (distributed)
- 7. By product sold Segmentation of the Sales & Marketing Dept. Group guest rooms Conferences Catered event MeetingsConventions Weddings and special events
- 8. Guaranteed occupancy, ease of cleaning their rooms, relatively uncomplicated billing Rooms often sold at very low daily rates Vacations, weddings, visits by friends and family, or non-work related reasons Heavy reliance on travel agents’ advice Social, military, educational, religious, or fraternal organizations Business travelers (who pay highest room rates) Corporate SMERF & Others By market (market segmentation)Long-term stay Leisure Segmentation of the Sales & Marketing Dept.
- 9. Potential guest who arrives at hotel without an appointment Fastest growing distribution channel Creating homepages and linking them to other sites Largest customers of many hotels Negotiated rate / blackout dates / pick-up Retailers, wholesalers or both Using Global Distribution System Receiving commission (5 – 20 %) from hotel Representative of corporations, groups and organizations Using comparison-shopping techniques Influence on hotel’s reputation Meeting planners Internet By distribution networking Consortia Travel agents Segmentation of the Sales & Marketing Dept. Drop-ins
- 10. Maintain record (e.g., demographic data) of hotel’s past, current and prospective clients Help department maintain its sales records, meet deadlines, and plan future activities Harmonizes efforts across department lines Engages in long-term planning Ensures cooperation of all in sales and marketing process Sales & Marketing Activities: Sales Efforts Sales & marketing committee Trace systems
- 11. The sales cycle Pre-sale phase Sales & Marketing Activities: Sales Efforts Invite client to a site tour Submit a bid Post sale phase Complete “Request for Proposal” and submit on time Establish room rates Prepare group contract (attrition and cancellation policy) Forward Direct Bill application to Group Establish group block Detail client’s contracted requirements Monitor client’s block Attend pre-event sales meeting of hotel staff Write thank you note to each group Review the final bill Include that group in the hotel’s preferred client database File all written reports Sales phase
- 12. Make a sales visit / presentation to potential client without having previously set an appointment to do so Visit / call quality prospective clients for hotel’s rooms / services New leads uncovered since last meeting Realistic sales potential of these leads Who in the department is following up on leads How leads will be pursued What, if anything, G.M. can do to help cultivate prospect Any sales resulting from leads discussed previously Sales & Marketing Activities: Sales Efforts Sales lead – effective DOSM should discuss the followings: Reserve adequate time for cold calling!
- 13. Gala client appreciation event Golfing, sporting events, concerts, theater tickets Gift giving Solidify business relationship with current clients (allow hotel to express gratitude to clients for current business) Communicate to potential clients the seriousness with which the hotel views the hotel / client relationship Sales & Marketing Activities: Sales Efforts Goals Examples Client appreciation activities
- 14. A review of market competition Occupancy trends /ADR trends / performance of own hotel Marketing plan development: format of marketing plan Sales & Marketing Activities: Sales Efforts Competitive analysis of your competitor Strengths / weaknesses / price structure Competitive analysis of your own hotel Strengths / weaknesses / price structure Forecast of future market conditions Estimated market growth or contraction / performance goals and objectives for own hotel / timeline for achieving these goals and objectives Determination of specific marketing strategies & activities Advertising / public relations / promotions Preparation of a marketing budget Development of measurement & evaluation tools
- 15. Eye or ear catching Memorable Sell the hotel’s features Cost effective Does not become quickly outdated Reflect positively on hotel’s image Can be easily directed to the hotel’s core client groups Exterior signage In-hotel and in-room signage and materials Radio or television commercials Direct mailing Internet banners E-mail message Yellow pages Franchiser-supplied advertising vehicles (directories, co-ops, etc.) Billboards Personal contact Sales & Marketing Activities: Sales Efforts Types of advertising Effective advertising Advertising
- 16. Promotion Sales & Marketing Activities: Sales Efforts “Special” packaging of products or services Promoted and disseminated by advertising and publicity Publicity Information about hotel, media-distributed free of charge Costs the hotel nothing May be either good or bad Public Relations (PR) Activities ensuring hotel has a positive public image (good citizen of the community) Hosting charity events, contributing cash or in-kind services, donation of hotel staff time for worthy cause
- 17. Teaming of GDS with Internet Internet Sales & Marketing Online reservation system Impact Travel agents: check availability, compare prices and book hotel on-line Online booking sites are fastest growing source of reservations in hotel industry
- 18. Effective hotel websites should: Sales & Marketing Activities: Websites be easy to navigate. have some level of interactivity. be linked to appropriate companion sites (demand generator). allow for online booking. balance guest privacy needs with hotel’s desire to build a customer base. update and revise room rates easily on the website. include a virtual tour of the property. complement other marketing efforts. be in language(s) of potential clients. have website address easy to remember.
- 19. The Front Office Inexpensive to send to many current and potential clients. Has attachment feature function to move documents quickly. Automatically updates user database Can disseminate special rate, promotion, new hotel feature to its client list Internet Sales & Marketing : E-mail Systems Traditional communication methods Direct mailing, telephone, fax Emerging communication methods E-mail system, Social Media Advantages of e-mail system and social media
- 20. Operating comparison criteria Evaluating Sales & Marketing Department: Goals Occupancy, ADR, RevPar, market share, historical trends, to-date performance, country or region Assess performance of Sales & Marketing department as well as the entire property Know the strength of hotel and Sales and Marketing staff’s sales results, in comparison with selected competitors.
Editor's Notes
- Students to compare definitions of “sales” and “marketing”. Sales is the process of servicing business currently identified while marketing seeks to generate new business. Ask students to define both sales and marketing in their own words; are students able to distinguish sales from marketing?
- Note that Sales and Marketing department plays a major role in selling group sales, while transient rooms are sold through Front Office efforts.
- Involvement in the local business community (e.g. Chamber of Commerce) is presented as a sales opportunity (particularly promotion opportunity) for the hotel; Chamber of Commerce is an organization whose goal is the advancement of business interests within a community or larger business region. Convention and Visitors Bureau (CVB) is an organization, generally funded by taxes levied on hotels, that seeks to increase the number of visitors to the area it represents.
- Sales and Marketing departments can be segmented based on type of guests who buy the product.
- Directors of Sales and Marketing structure their departments based on “ how” the hotel’s sales are made, namely the specific distribution channels used; distribution channel is a distinct and definable source of hotel rooms or services sales. Consortia are groups of hotel service buyers organized for the purpose of reducing their client’s travel-related costs; a single such group is a consortium. Negotiated rate is a special room rate, offered for a fixed period of time, to a specific client of the hotel. Black-out dates are days on which the hotel will not honor a negotiated rate. Black-out dates should be identified at the same time the hotel and the client agree on a negotiated rate (e.g. New Year’s Eve). Pick-up is the actual number of rooms used by a client in a defined time period.
- A G.M. normally acts as the Chair of Sales and Marketing Committee. Sales and Marketing Committees are groups of individuals responsible for coordinating hotels’ sales and marketing efforts. “Trace system” is a methodical process to record what was done in the past and what must be done in the future to maximize sales effectiveness; an effective trace system has the records of each individual client.
- Inform students about what specific sales and marketing activities take place at the sales cycle; the lists of events associated with each cycle of sales (pre-sale phase, sales phase, post-sale phase).
- Good networking can create leads. Also, text emphasizes that a G.M. should be able to identify prospective clients for solicitation.
- Explain the benefits of a marketing plan to the Sales and Marketing department and to entire hotel property. Marketing plan is a calendar of specific activities designed to meet the hotel’s sales goals; activities included in a marketing plan involve analysis of own competition, analysis of own hotel, establishing prices, and publicizing hotel’s offerings through advertising, promotions and public relations activities.
- Provide examples of promotion, such as a “Summer Getaway” promotion, to be marketed in winter. Emphasize that the publicity costs the hotel nothing, and the publicity may be either good or bad; cultivating good relationships with the media is an important task of the G.M.
- Note that online booking sites are the fastest growing source of reservations in the hotel industry; this method is becoming popular because online is an inexpensive way to reach consumers directly
- Effective use of websites allow hotel to take advantage of an inexpensive direct line to consumers. Emphasize that measures of website effectiveness should be sales production (sales made), rather than sales calls (hits). “Demand generator” means an organization, entity or location that creates a significant need for hotel services; Examples in a community include large businesses, tourist sites, sports teams, educational facilities and manufacturing plants.