Sales development is a procedure of generating more sales to increase profitability and enhance market share of organization. It’s a plan to obtain more customers, targeting new segments of market by making improvement in the product and services. For sales development organization plans activities to attracting customers (Ohai, 2008). In current report Hotel Hilton is chosen as an organization. Hotel Hilton &Resort founded in 1919 and in current scenario it’s having 540 hotels worldwide. London Hilton located in Park Lane. This report will explain the product and services of Hilton and contribution of product mix in their sales. It also discusses the external technique for sales development and factors affecting the buyer behavior. In the next part report evaluate internal factors for sales promotion and influence of layout and design of the organization. In the end it will evaluate technique of personal selling, role of staff and elements for sales training module (Randall, 2009).
TASK A: ELEMENTS OF PRODUCT AND SERVICES FOR BUSINESS CONTEXT
1.1 and 1.2 Elements of product and contribution of product mix in sales and profit
Hilton hotel is providing quality services according to their customers to satisfying them, they are doing well in accomplishing the desire of their visitors and wining their hearts by offering exceptional product and services. To stay in hunt with competitor Hilton offering best of their product components such as:
Core benefits: Hilton is offering same level of services to all of their visitors across the world. London Hilton is providing risk-free services to customer and satisfying their needs with the enjoyable experiences (Seley and Holloway, 2008). That is the most striking components of their product. People who visiting their place is getting full benefits of their paying.
Augmented product: In that Hilton is providing range of product and services to their different customers. The customer is getting services of their choice at Hilton. This also adding another component in the product line of London Hilton.
Standard quality: Hilton is known for their world class quality of product and services. To make their customer happy and satisfied hotel offer same standard superiority in their products such as rooms, suits, pool and gym to one and all (Blackwell, 2006).
Value to customer: Hilton hotel proving maximum value to their visitors by greeting them with warm welcome and offering pleasurable services to make customer feel great by selecting their product and services.
Product mix: Hilton is managing their services and product in such a manner which is allowing them to understand the desire level of customer and nourish them according to that. In their product mix Hilton is adding many things and makes changes as per the conditions (Czinkota and Ronkainen, 2012). To increasing their sales and profits Hilton is providing special offers, schemes and product line such as:
Extra facilities: In the product of hotel Hilton is offering health club facility to their customer to be fit and healthy. For that a appointed some trainers to guide vaster and motivate them to do exercise daily. This influencing people and enhancing sales.
Food and beverages: By offering quality and delicious food to visitors Hilton is attracting other people to try once their services. People who tasted food of Hilton admire it and that is helping them to increase seals.
Offers: For the increment in their sales hotel is lunching schemes to attract customers and target new group (Egan, 2007). They proving attractive packages to stay and avail the services of Hilton which is persuading visitor to prefer their product instead of other hotels. It is increasing sales and profitability of Hilton.
1.3 Contribution of market segmentation to improve sales
Market segmentation is providing the view about the different type of customers and to understand their needs organization divide them into different parts. Hilton use different strategies to follow their potential customers. Hilton designs their product and services according to their customer types and it help them to access overall market place. This helps hotel to improve their sales. Segmentation of customer is as follows:
Psychographic: In that segmentation Hilton observe visitors and offer services and product as per the requirements of them. To know their expected level of services hotel generally ask before delivering the product or services (Hayes and Nenemeier, 2009). It clicks in the mind of visitors and increase image of Hilton. It ultimately enhances the sales of organization.
Geographic: In that segmentation hotel design and develop their product and services as per the culture of local people. They treat visitors in that way which they like and used to follow in their society (Chaharbaghi and Lynch, 2010). By that visitor feel familiar environment and like to visit again. It directly improves the sales of Hilton.
Behavioral: If the services are met by hotel as per desire and needs of customers than it will directly impact on sales revenue of their business. To understand the behavior of customers Hilton analysis the customer dairy to improve or change product and services. This will surely help them to increase sales.
These kinds of different segmentation provide information to management for planning their operations according the behavior of their targeted groups. That will help them to increase sales and profits.
TASK B: EXTERNAL SALES DEVELOPMENT TECHNIQUES
2.1 Factor affecting buyer behavior
Every customer is different from the other and the requirement of individual is differ from each other (Chamberlain and Broderick, 2007). There are many factors which affect the buyer behavior are as follows:
Social factors: In that family, status, reference group and income affect their buying process. They prefer product and services as per their knowledge and income. For example Visitors takes opinion of friends and family members and other to choose hotel to stay.
Psychological factor: Customers attitude, belief and morale affect the sale of Hilton. They look for best suit hotel in every manner including their services, ethics and character (Link, 2012). The services and product line is influence the buyer decision. It directly affects the sale of hotel.
Personal factor: The age, occupation, education and marital status of every individual affect the buying decision. To choose the services of any hotel they define their personal needs and select services of hotel. Life style and personality of people changes the purchase decision.
Cultural factor: Internal values and culture of people influence the decision of buyer. They like to purchase services as per their class and willingness to pay for product and services (Maier, 2012). These factors of buyer behavior make changes in the sales and profitability of Hilton. To attract customer organization required to offer services as per the demand of customers.
2.2 Advertise media for sales development
In the market there are many type of promotional media available to increase sale and built brand image. From them Hilton can select anyone and more to improve their sales. Hotel can use television, internet, sponsorship and newspaper or magazines to create awareness about services and product (Carpenter and Fairhurst, 2005). By the help of promotional activity customer or visitor will able to collect information for Hilton and approach them to offer services. These activities will increase the sales of company and influence their target market to avail their product and services. By using these media Hilton attract visitor to come and experience world class services. In the current scenario online media is very effective and strong to advertise their facilities and influence the potential customers (Herstein and Mitki, 2008). For advertising and creating hype in the market Hilton can take help of any celebrity to endorse their brand and attract people to prefer their place for enjoyment and corporate deals. Mobile apps are the new way of today’s advertising media to persuade visitor. It will provide all information at any time and help Hilton to improve their sales and promotional activity. Sponsorship of events and other activities will strike in the mind of customer who looking for good hotel. These kinds of advertising influence the visitor to have experiences of Hilton services and product.
2.3 Evaluation of external merchandising to improve customer volume
Merchandising plays important role to increase customer volume and sales. To influence customers Hilton provide the offers and visitors hours (WEINBERG, 2012). Usually people buy things which provide extra benefits and facility. In that process Hilton is following these merchandising terms:
Offers and schemes: On the periods of festival Hilton Hotel offers and schemes to attract the customers. People try new things to enjoy the festival time to occupy this opportunity Hilton organize parties and discount schemes to improve their customer volume. People who attending those party will influence by the services of hotel and visit it again.
Personalize merchandising: To satisfy the customer Hilton provides services as per the planed activity chart of every visitor (Gordon and et. al., 2012). They meet the level of their expected services of visitor and make them happy. Hotel asks them to provide their opinion before and after services to make it perfect. It increases the satisfaction level of customers.
Segmentation merchandising: In the industry of hotel they have most divers’ kind of client range; to understand the requirements of different customers they divide customer groups in different segments (Johlke, 2006). Hilton follows their customer by their preference and offers those services like luxury rooms, cars and food and beverages as per their demand and type.
These kinds of merchandising are helping Hilton to increase customer volume and generate more revenue to maximize their profitability.
TASK C: INTERNAL SALES PROMOTION AND MERCHANDISING
3.1 Influence of design and layout on customer spending
Interior design and layout play significant role to attract the new visitors and targeted customers to use the services of hotel Hilton. In that the color, walls, lighting and accommodation facilities of observe by the customers. These things noticed by the visitor too and manipulate them to prefer Hilton services (Johlke, 2006). The hotel is construct in 1963 so the interior of it is slightly traditional and different from other, hotel includes the modern architects to make their design and layout beautiful. Hilton is having exclusive design such their lobby, dinning and conference hall are well furnished which influence customer to spend more.
Hilton is having great view from their windows and proper lighting, designer gates and special beds in suits attract the customers. These things help Hilton to increase sales and customer footfall. Hotel is always keen to make changes in their interior design to maintain their uniqueness and interest of customers (Moliner and et. al., 2007). The wall paintings and decoration of flower create peaceful environment which provide relaxation to eyes. The equipments of gym and well design poolside add more effectiveness in their presentation. The world class design and layout is attracting customers from across the globe to prefer the product and services of hotel Hilton.
3.2 Review and evaluation of internal merchandising materials
Internal merchandising materials are those that support in the product and services delivery for Hilton. To maintain the reputation of hotel, management tries to present all services well organize and effective ways. It involves the welcome of visitors, table tent card and employer communication (Värlander and Yakhlef, 2006). In the internal merchandising hotel provide services and product delivery according to customer direction and requirement. They try to manage their operation in that manner which will not create any disturbances for customers.
To retain their customers and visitors, Hilton requires co-ordination and highly organized process to meet the level of customer’s desires and needs. In order to increase sales they develop their menu to provide delicious and healthy food to their customers. Food and beverages plays important role in internal merchandising, people judge the level of hotel by their food (PRODUCT MANAGEMENT LIBRARY OF KNOWLEDGE. 2010). So in the review and evaluation of internal merchandising hotel Hilton is finding good with their services. Customers are satisfied and getting full value for their paying at hotel Hilton.
3.3 Evaluation of different promotional activities for different scenario
For the different occasion Hilton provide different services to increase their sales and get the attention of targeted customers. In that process hotel involve offers, events as per the seasons and conditions. It helps organization to improve their brand loyalty, image and market share. In order to achieve these things hotel provides discounts offer, family packages and festival benefits to their customers (Ohai, 2008). To perform these promotional activity organization look for time, money and availability of resources. To catch the new target group hotel offer discount schemes and offers to encourage visitors for experience their services and product line.
In the festival session many visitor come to London to enjoy and fun. For those people hotel also organizes parties and cultural activities which help them to improve their customer base and profit. For the holiday seasons hotel can use internet sites to promote their services and prime location to make perfect holiday enjoyment for their positional customers (Randall, 2009.). Hilton hotel can also use the travelling website to provide information regarding their price and events. These activities will help Hilton to increase sales and profit.
TASK D: THE ROLE OF STAFF IN MAXIMIZING SALES
4.1 Evaluation of personal selling techniques
Personal selling helps in reaching customers directly and provides information about product and services of hotel. In that procedure Hilton can use various techniques for personal selling which are as follows:
Sales calls: The marketing department of Hilton produce sales calls to their targeted customer groups and corporate for providing information regarding their offers and activities (Czinkota and Ronkainen, 2012). In that process the marketing executive follow their clients at clubs and organization to influence customers buying behavior.
Online selling: In the current scenario online selling is increasing very effectively for every product and services. Hotel Hilton can take help of online sites to sale their product and services worldwide (Hayes and Nenemeier, 2009). On that they can present all the information such as price and location of their hotels. It reduces cost and time and the results of that technique are positive.
Telephone selling: By the help of customers dairy hotel collect the information of their customer and greet them on the special occasion and offer their services to celebrate it. For that hotel requires skilled employee which can understand the customer needs and satisfy people by providing information of hotel (Chamberlain and Broderick, 2007). This will help organization to improve their sales figures.
It is recommended to hotel Hilton to prefer online and personal selling technique to target new and existing customers. These techniques will help the organization to enhance the sales and profits.
4.2 Influence of operation design on sales revenue
To make effective operational design and improving the sales revenue hotel Holton need better co-ordination and co-operation of employees. Hilton has well design operational platform to deliver their services. The management of hotel is doing well to maintain good standard of operation (Link, 2012). To meet the satisfaction level of customers desire services hotel need all operation to perform well and timely. These things strike in the mind of the customers which will influence them to visit hotel again.
The effective operational process reflects in the results of hotel. People talk about their experiences with Hilton which influences other to avail the services of hotel. The design of operation should be panned to achieve their target and it must to be controlled by the management (Maier, 2012). These operational activities lead Hilton to expand their sales and earn more profits.
4.3 Principles that should include in the sales training program
Sales training program is play significant role to make organization successful and leader in the industry. The main aim of this activity is to make their employees knowledgeable and skilled (Carpenter and Fairhurst, 2005). The proficient employee will help Hilton to improve their sales and brand image. In the training program organization must include these principles:
Knowledge of hotel and services- Every employee of the Milestone hotel must have a proper knowledge about the hotel and services which are provided by them to the customers. This will in providing the right services to the consumers. It must works as change agent for the sales person so that they can modify their activities to meet their targets effectively. It must pay proper concentration individually so that everyone can learn properly. Training should be provided in proper environment where trainees can concentrate (Herstein and Mitki, 2008). There must be unique offering for the sales training so that sales person can work more efficiently
Communication skill: The training module must involve the communication improvement program to make them proficient to understand and convey their message to customer in proper manner. Use of proper technology should be ensured so that it may be convenient to give training in proper manner. For offering best services to their customers Hilton need skilled and professional employees and to make them knowledgeable and proficient for task which attracts the customers is develop through the training (Gordon and et. al., 2012). So all this points should be considered while preparing training program for the sales force because there should be greater utilization of recourses invested in this. And it must generate the outcome for the business and sales force can be highly skilled as per the requirement of the job.
This report concluded that product mix, selling techniques and various training principles leads to increase in sales as well as profit of the hotel Hilton. Organization has applied the perfect product mix to attract more consumers of their services. Company has varied advertising media for increasing the sales of the hotel Hilton. Hotel has focused on various internal and external factors in order to improve sales and divided their product and services according to customer preferences. In the end it provided the key elements of training program such as communication and knowledge about product and services of Hilton.
Blackwell, R. D., 2006. Consumer behavior. Mason: Thomson.
Carpenter, J. M. and Fairhurst, A., 2005. Consumer shopping value, satisfaction, and loyalty for retail apparel brands. Journal of Fashion Marketing and Management.
Chaharbaghi, K. and Lynch, R., 2010. Sustainable competitive advantage: towards a dynamic resource-based strategy. Management Decision.
Chamberlain, L., and Broderick, J. A., 2007. The application of physiological observation methods to emotion research. Qualitative Market Research: An International Journal.
Czinkota, M. and Ronkainen, I., 2012. International Marketing. Cengage Learning
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