Chapter 6 - Personal selling - The Sales Process.pptx

Personal Selling: The Sales Process
Learning Objectives:
To better understand the sales process and how it works in hospitality sales.
To become familiar with the various stages of the sales process, which include:
Prospecting and account qualification
Probing and solving customers’ problems
Presentations, negotiations, and pricing
Overcoming objections and closing the sale
Contracts and letters of agreement
Definition of terms
Account – refers to a customer or grouping of customers from an organization, such as business enterprise or a professional trade association, that has ongoing needs for hospitality services.

Clients – Regular customers especially in business markets.

Prospecting – It is the act of seeking new sources of business for your hospitality establishment.

Leads – are potential customers with whom no contact has yet been made.

Referrals – Leads for prospective customers.

Cold Calling – is essentially “knocking on doors” and its use in hospitality sales is controversial.

Telemarketing – is the process of telephoning potential customers from lists.

Site inspection – is when a prospective client is brought on premise and given a tour of the facilities.
Bundle pricing – is when two or more aspects of a product or services priced as one.

Single-product pricing – is when a basic price is set for the basic product.

Binding contract – is a document signed by both parties outlining pertinent details of the agreement.

Confirmation – gives details of what was agreed upon between two or more parties.

Letter of Agreement – is a formal document with space given at the end for each party to sign the agreement.


1st stage – Prospecting and Account Qualification
Ways to go about prospecting:
Current Accounts
One of the best sources to uncover new business is within current accounts.
Current clients may know of potential customers outside their organization as well, that is, colleagues of theirs who hold similar position in other organizations.

2. Leads & Referrals
Learning of potential customers from current customers is essential in developing leads for prospective customers.

Referrals are essentially powerful when the source of the referral is a satisfied customer who is recommending your facility to future potential customers.
3. Cold Calling – “knocking on doors.”

For many sales professionals, cold calling was replaced with telemarketing in the late 1970s and early 1980s.
The objectives is the same for both – learning of potential customer needs and wants and assessing whether your product or service can satisfy those needs and wants.
Sales Call Report
File No: C9825 Sales Manager: Jervy Item
Date: Sept. 8, 2017

Organization : BISU
Contact: Dr. Antonina A Cero Title: CTAS Dean
Address: Zamora, Bilar, Bohol Digits: 09478022408

Short term bookings for next semester
Knows the organizer well.
Similar event organized.
Agreement
Account Qualification
Qualifying an account is an aspect of probing to identify the basic

1. Personal Selling: The Sales Process Learning Objectives: To better understand the sales process and how it works in hospitality sales. To become familiar with the various stages of the sales process, which include: Prospecting and account qualification Probing and solving customers’ problems Presentations, negotiations, and pricing Overcoming objections and closing the sale Contracts and letters of agreement

2. Definition of terms Account – refers to a customer or grouping of customers from an organization, such as business enterprise or a professional trade association, that has ongoing needs for hospitality services. Clients – Regular customers especially in business markets.

3. Prospecting – It is the act of seeking new sources of business for your hospitality establishment. Leads – are potential customers with whom no contact has yet been made. Referrals – Leads for prospective customers.

4. Cold Calling – is essentially “knocking on doors” and its use in hospitality sales is controversial. Telemarketing – is the process of telephoning potential customers from lists. Site inspection – is when a prospective client is brought on premise and given a tour of the facilities.

5. Bundle pricing – is when two or more aspects of a product or services priced as one. Single-product pricing – is when a basic price is set for the basic product. Binding contract – is a document signed by both parties outlining pertinent details of the agreement. Confirmation – gives details of what was agreed upon between two or more parties.

6. Letter of Agreement – is a formal document with space given at the end for each party to sign the agreement.

7. 1 st stage – Prospecting and Account Qualification Ways to go about prospecting: Current Accounts One of the best sources to uncover new business is within current accounts. Current clients may know of potential customers outside their organization as well, that is, colleagues of theirs who hold similar position in other organizations.

8. 2. Leads & Referrals Learning of potential customers from current customers is essential in developing leads for prospective customers. Referrals are essentially powerful when the source of the referral is a satisfied customer who is recommending your facility to future potential customers.

9. 3. Cold Calling – “knocking on doors.” For many sales professionals, cold calling was replaced with telemarketing in the late 1970s and early 1980s. The objectives is the same for both – learning of potential customer needs and wants and assessing whether your product or service can satisfy those needs and wants.

10. Sales Call Report File No: C9825 Sales Manager: Jervy Item Date: Sept. 8 , 2017 Organization : BISU Contact: Dr. Antonina A Cero Title: CTAS Dean Address: Zamora, Bilar , Bohol Digits: 09478022408 Short term bookings for next semester Knows the organizer well. Similar event organized. Agreement

11. Account Qualification Qualifying an account is an aspect of probing to identify the basic needs of potential buyer.

12. Customer Profile Sheet Market Segment: Customer Industry/Organization: Customer Title (Job function): General Customer Needs: Industry Organization’s Distinguishing Characteristics: Sales Implications:

13. Customer Profile sheet – outlines information on the customer with regard to market segment, industry and or organization represented, general customer needs, and sales implications. This information can help streamline and/or better focus the probing process. The sales implication section of a customer profile sheet should include items specific to this potential account.

14. 2 nd stage : Probing and Solving Customers’ Problems The essence of hotel sales and marketing is finding ways to solve customers’ problems. Without needs and problems, there are no opportunities for sales and marketing to pursue. Probing is asking questions, lot of questions. The objective is to learn as much as you can about customers’ needs and wants.

15. 2 types of Questions 1 st Open-Ended questioning – asking broad general questions coupled with listening. 2 nd Closed-Ended Questioning There are times in hospitality sales when a combination of open-and-closed-ended questioning is appropriate. Oftentimes clarification is needed.

16. 3 rd stage – Presentations, Negotiations, and pricing Presentations are an integral part of the sales process. Upon completion of initial probing, the sales account executive should have enough information to “present the message.” The message should essentially say to the prospective buyer, “I think I have a solution to your problem, and here it is.” The message should be forthright and direct, and should keenly distinguish between the features and benefits of your product offering.

17. Features refer to the physical or tangible aspects of product offering. Benefits refer to the customer’s use of these features.

18. Types of presentations Personal Non-personal Personal presentations can be done, in writing, by video, on the web, by CD-ROM, and on the phone. Non-personal presentations includes advertising, direct mail, brochures and merchandising. Other examples here include menus, videos, postcards, and promotions in books as well.

19. Negotiations Negotiations happen when the needs of both buyer and seller are put on the table a more open and more positive relationship is developed. It is the job of the sales manager to find the “win-win” situation, that is, to find the best fit for both buyer and seller. In hospitality sales, three key issues typically emerge: rates, dates and space.

20. Pricing One of the most ticklish areas in negotiations is pricing. The art of negotiation is finding the best price, that is, the price at which both buyer and seller are satisfied. The three factors to help set a conceptual framework for arriving a fair price: demand, competition and cost

21. Costs refer to the cost of the seller. Single-product and bundle pricing Single product pricing is when a basic price is set for the basic product. Bundle pricing – is when two or more aspects of a product or service priced as one.

22. 4 th stage – Overcoming Objections and Closing the Sale Overcoming Objections A key point when handling objections is to have the prospective buyer prioritize (or reprioritize) his or her basic needs. It is important to remember when trying to overcome objections to always be positive. Never argue and do not be defensive. It is also good advice not speak negatively about the competition.

23. Closing Sale Many sales are lost because the salesperson did not ask for the business. There are several closing techniques from which to choose. Some are more appropriate than others depending on the level of experience, circumstances, and personality of the buyer, and the preference of the seller. They range from the “hard-sell” approach to the “soft-sell” approach.

24. 5 th stage – Contracts and Letters of Agreement A sale is truly closed when a signed contract is in hand, that is, a document signed by both parties outlining pertinent details of the agreement. From a legal perspective, this document is considered legally binding. By signing a binding contract, each party has accepted the obligation to fulfill his or her part of the agreement.

25. The terms confirmation, letter of agreement and contracts represent frequently used terminology in hospitality sales. Confirmation – gives details of what was agreed upon between two or more parties. Letter of Agreement – is a formal document with space given at the end for each party to sign the agreement.

26. Cut off dates typically range from two weeks to 30 days prior the arrival of the guest Rate Confirmation The contract should state when the rate will be confirmed – which is normally one year in advance.

27. Thank you for listening!!!