Sales Development And Merchandising

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Introduction to Sales Development And Merchandising

Sales development and merchandising is one of most essential sections for every business organisation so it is necessary for hospitality organisation to focus on key concepts of sales as well as merchandising. In addition to this, it can be said that sales development is a technique that facilitates sales professional to meet objectives in an effective manner (Hayes, 2009). It is also considered to make improvements in sales process which also amends overall profit margin ratio of the firm.

In order to understand the concept of sales development and merchandising, study will focus on the work culture of Ritz Hotel. It will provide information regarding various elements of products and services that are offered by Ritz Hotel to its customers. It will also have a spot light on various techniques that can amend sales development aspects within organisation. It will also consider description of diverse internal factors that impact sales promotion and merchandising in a positive manner. Furthermore, it will also focus on various roles of staff members in sales development and merchandising.

TASK A

1.1.2 Key components of hotel product and product mix contribution to sales advancement

Key components of product

It has been spotted that there are number of products and services that hospitality organisation provides to its customers in order to meet the objective of sales advancement. In addition to this, it can be said that product features consideration provides effectiveness to marketing activities (Johnson, 2005). Further, Ritz Hotel provides various products and services such as accommodation, restaurant, leisure activities, etc.

However, hotel management renders high class accommodation services through offering luxury rooms to its customers. In rooms, beds are properly arranged and sheets are well cleaned. Hotel also provides breath in and breath out pillow to amend the experience of customers. Lamps are also well placed in the room, projection of alarm clock is also appropriate, etc (Link, 2012). In support of this, it can be said that total number of rooms are 111 and suites is 11. 

In addition to this, it has also been identified that Hotel premises consists of 3 restaurants in which different categories of food are available for various customers. In other aspect, it can be stated that customers can attain restaurant services as per their preferences because food for every class of people is available here. Bar is also well located near the restaurants that enhances the experience level of hotel guests (Mungall, 2009). Number of alcohol brands are being served in the bar to meet the expectations of visitors. Restaurant and Bar of Ritz Hotel provide modern and friendly environment in which guests can enjoy variety of drinks and delicious healthy food. Company also ensures that fresh ingredients are being used in restaurant services to meet quality standards and amend the experience of guests (Tesone, 2005). Other than this, services related to clubbing, games and library are also being offered by Ritz Hotel to amend experience level of customers and lead business to the impressive level of success.

Product mix contribution

It has been identified that product mix has great involvement in the advancement of sales ratio.  Flow of information regarding products and services is taken into account with the help of direct marketing, advertising and internet. It creates better awareness among customers and impacts sales ratio of products and services in a positive manner (Butler, 2003). In order to create better customer base, management of Ritz Hotel focuses on improving quality of products and services as it also facilitates in targeting potential customers.

Number of leisure services are also being provided by hotel to amend the overall sales of organization such as physical fitness room, floor plans, club parties, etc. Moreover, management of hotel also ensures that employees are treating its customers in an appropriate manner so that effective contact with customers can be created (Irwin, 2008). Reception services, room service, restaurant services standards are effectively followed by the employees to boost effectiveness of products and services as it has direct positive impact on the overall sales of organisation.

1.3 Market segmentation contribution in sales

When the broad target market divided into the sub groups such as consumers, business, area etc. to achieve the business goals and to meet the requirements of the customers with the help of marketing strategy is known as market segmentation. Without segmentation, company can't analysis the requirements of the target groups. Market segmentation contribute to maximize its sales through different aspects and they are: 

Focus of the company: The Ritz Hotel should have focus on the different markets segments because it allows company to have better focus on their customers which is beneficial to attain better returns (Luther, 2001). The business enterprise should design innovative strategies to aim the new segment and amend the increase its profitability. 

Increase in competitiveness: If the focus of organisation is expanding, then the competitors of The Ritz hotel will also increases. It means with an assistance of segmentation strategy the business can easily reduce the competition level and focus on social-class people. It also provide better opportunity to brand recall so that business can attain objectives effectively (Weinberg, 2012). Segmentation can lead business to increase in market share, brand value as well as increase in sales performance. 

Market expansion: When the market is segmented on the basis of geographic segmentation, there is a possibility of expansion in operational opportunities. The Ritz hotel targeted the social class customers who prefer luxurious life as it provides better expansion opportunities to the business (Maier, 2012). The hotel is providing 5 star facilities to its customers as per consideration of safety measures to meet the needs of segmented market.

Customer retention: To hold the customers or to retain them with the organisation, the Ritz Hotel follows the life cycle of the customers as per segmentation standards. The Ritz hotel is providing all types of the facilities to diverse kinds of customers as per segmentation to increase its sales as well as to maintain its customer base in the market.

Better communication: Communication is the must process in the market segmentation. The Ritz Hotel is also focussing on the direct communication between the consumers and the organisation so that needs can be identified in appropriate manner (Burrows, 2012). Feedback process about its  services can be accomplished effectively by proper division of market in diverse segments. The communication process is important to know the needs and requirements of the consumers. It can also be done through advertisements, public relations, social media, feedbacks etc.

Increases profitability: Segmentation increases brand value, brand equity, loyalty of consumers and communication strength in the market which affects the sales performance of the company in positive manner (Fransoo, 2010). It also helps in the increasing of the profitability. The Ritz Hotel also focuses on the proper segmentation which enhances the operational opportunities and provide higher profitability.

TASK B

2.1 Factors affecting buying behaviour

Buying behaviour affects the company's sales and its performance so it is necessary for firm to analyse the customers' needs and requirements. It also relates with their purchasing power to buy the products and services. Buying behaviour highly influenced by cultural, social, personal and psychological factors which affects the buying decision of the consumers. The following factors which affects buying behaviour of the consumers are:

Cultural factors: This factors include consumers' culture, subculture, social class. The Ritz hotel focuses on the various culture of the customers because there are different people of the different culture which tastes and preferences are different from others. Customers from arabic and muslim countries prefer foods which are certified halal and so by this, the hotel also have to serve their customers accordingly (Ingram, 2012). The Ritz hotel have to serve their customers according to their tastes, preferences, innovation, quality and lifestyles so that they can maintain their loyal customers. 

Social factors: This factors includes family, roles, status, groups etc. which influences the buying decisions of the consumers directly or indirectly. The Ritz hotel focuses the social class customers who believe in luxury, brands, standard of living etc. Now a days for social class, price are less preference but quality of product matters more because they are highly quality conscious (Meyr, 2015). Earlier people prefer low class hotel for them but now the scenario has been changed, customers are going for 5 star hotel which provides them with high quality facilities. Brand image also matters in influencing the buying behaviour of customers and The Ritz has its brand value.

Personal factors: This factors include age, occupation, economic circumstances, lifestyles, self concept etc. which often change according to the situations. Lifestyle matters in this factors because it influences its decisions and buying behaviour of the consumers. The Ritz hotel has to make its image in appropriate manner by considering personal factors so that many consumers can attracted towards the organisation and increase its profitability (Schwartz, 2006). To attract more customers, The Ritz hotel should be innovative, creative and singularity in their products and services.

Psychological factors: It includes motivation, perception, learning, attitudes etc. to influence the buying decision of the consumers. To increase the sales performance and to encouraged consumers to buy their products and services, The Ritz hotel will try to motivate them and try to learn their attitudes and perceptions towards the products and services of the customers (Wallace, 2010).

By identifying these above mentioned factors, the Ritz hotel have better opportunities to influences the customers to buy their products and services through developing a strategy and maintain its brand value in the market.

2.2 Advertising media use for sales development situations

As per the structured study, it can be said that advertising media is one of most commonly used techniques which provides various benefits to business in monetary as well as non- monetary terms. In addition to this, it can be concluded that use of advertisement tools can amend the sales of Ritz Hotel. It is essential for business organisation to choose media tool as per the nature of business and key desire of business (Gray, 2007). There are different kinds of advertising tools that can be used by management of Ritz Hotel in order to boost its sales. Classification of tools can be as newspaper, events, social media, email, etc. 

Social media is considered as one of most significant and commonly used advertising tools that provides better opportunity to business by creating high customer base. In addition to this, hotel management can use Facebook, web-portals and other social media tools to convey  message about the offers and services that they provide to its customers. It is a way through which organization can easily create awareness among customers and boost the sales of firm in a diverse manner (Jobber, 2011). Moreover, advertisement in newspapers and tourist magazines is also one of beneficial techniques that attracts business class customers towards services and products.  Management of Ritz Hotel can publish newspaper and magazine advertisement to communicate information regarding their products and services. It is also beneficial for attracting various potential customers that will have direct positive influence on the organisational sales (Noonan, 2010). 

Other than this, management of Ritz Hotel can also host various events in order to attract more and more customers towards their products and services. For example, management can conduct international business conferences in the hotel premises so that they can easily attract more and more business class customers towards their services (Andreasen, 2008). In support of this, it can be said that management of Ritz Hotel can also sponsor various musical events in order to gain better market share. It will amend awareness among customers and motivate them to use hospitality services of Ritz Hotel.

Furthermore, email messaging system technique is also advantageous for the business organisation as it assists in creating better relationship with customers. Company can provide information about various offers and changes in hospitality services to its regular customers through use of email. It may prompt loyal customers to reuse the services of Ritz which is beneficial for the advancement in sales and profitability.

2.3 Evaluating the use of external merchandising to maximise customer volumes

 In order to have better success and maximization of customer base, it is essential for management to focus on key techniques that can convince people to visit hotel and purchase its services. It will facilitate business firm to maintain the key standards and provide better opportunities in the market. External merchandising is referred as technique that Ritz Hotel can use to create better customer base. In this, management needs to display the products and services in order to have better customer base and provide them enhanced level of satisfaction (Cravens, 2008). In addition to this, it can be said that the external  merchandising includes importing services from outside of the nation. For example, the management of Ritz Hotel can hire any external professional to its physical fitness department who will provide services to hotel guests.  It means that the hotel has to plan the business accordingly, to provide right services to right customers as per their needs and wants (Fleck, 2014).

Other than this, it has been spotted that the merchandising of organisation can be differ for each and every customer's as it facilitates business to attract more and more customer's in most appropriate manner. Individual merchandising is considered as a services in which professional provides service to individual client as per his/her demand or expectations. It provides enhanced level of satisfaction to customer's by availing the services of hotel (Hoyer, 2012). 

On the other side, mass merchandising is technique in which customer's attain services in a group. In this, all services will be provided to customer's in equal manner as per the consideration of common need or expectation.  It is essential for management of Ritz Hotel to have effective display of its services in the premises so that customer's can easily acess the services which is beneficial for improvement in sales of the hotel (Kanagal, 2014). In order to ensure that the customer's are getting effective services the business organisation can also adopt feedback system. It will also assist in gathering information regarding diverse factors and understand the negative factors that impacts business in negative aspect. 

As per the above statements, it can be asserted that the external merchandising is one of most significant technique for hospitality organisation as it amends the quality of services which impacts customer perception in positive manner (Solomon, 2014). In order to have effective improvement in sales ratio, management must focus on key concept of merchandising as it allows business to render services as per needs of segmented customer's. It is advantageous for rendering better satisfaction level to the guests and enhance the effectiveness of the services.

TASK C

3.1 Assessment of the influence of design and layout on customer spending

As per the structured study, it can be said that the design and layout of the hotel premises and services impacts the customer perception in diverse manner which can also influence customer spending on the services. It has been spotted that the premises of Ritz Hotel covers 3 restaurants in which they provide number of food products to its customer's (Ward, 2014). It allows customers to attain restaurant services as per their preferences because food for every class of people is available in premises. In addition to this, hygienic environment and delicious food services also enhance the satisfaction level of the customer's. Enhanced level of customer satisfaction also prompt guests to use more services in order to experience optimistic features. 

Moreover, the luxury rooms are also well designed and arranged in the hotel which renders optimistic comfort level to the customer's. Thicker mattresses, king size bed, designer walls, etc also attract travellers to the services which is beneficial for business as it renders better satisfaction to customer's (Porter, 2014). Enhanced level of customer satisfaction level is also advantageous for business as it prompt guests to spend more on hospitality services of Ritz Hotel. Upgraded bathroom amenities and coffee machines are also properly installed within premises that boosts the lucrative features within environment.

Other than this, hotel premises is also well equipped with free wifi services which enhances the customers experience or satisfaction level. Impressive design and layout of hotel premises also motivates customer's to pay more for the premium and luxury services that hospitality organisation offers to them (Designs, 2012). Luxury features in room such as swimming pool, entertainment enhances the satisfaction level of high class people which impacts positively on profit margin ratio of organisation. 

In addition to above statements, it can be said that the with an improved level of focus on design and layout the hospitality firm can provide various benefits to its customer's that covers different needs. It is also essential for staff members of hotel to ensure that they are providing the best in services so that customer's satisfaction level can be enhanced in most appropriate manner (Hunter, 2007). If hotel premises is having effective design then tourist will feel attractive towards hotel and have long stay in the hotel to utilize hospitality services. It will impact the sales and profit margin ratio of Ritz Hotel in diverse manner. Rooms are also well furnished that facilitates customer's and render optimistic experience level which is beneficial for improvement in customer satisfaction level.

3.2 Review and evaluation of the effectiveness of internal merchandising materials

In regard to this, it can be said that the internal merchandising is one of critical aspect that can easily attract more and more customer's towards hospitality services. It also has positive impact on the sales and market share of Ritz Hotel. In addition to this, it can be stated that the merchandising material is consisted of various in-house promotional activities (Designs, 2012). Classification of activities can be as posters, table tent cards and other services that can boost the sales of the organisation. 

In order to have effective consideration of internal merchandising, the management of Ritz Hotel need to focus on effective planning of activities. It is necessary to ensure that the common place in premises is well established so that guest can sit and read papers in their free time. It also allows guests to meet with third party persons in order to feel comfortable (Porter, 2014). Lobby area must be well arranged in the hotel premises as it creates cohesiveness among customer's. In order to attract more and more customer's towards services the management can use table tent cards. Company can display unique feature or any special feature of services on table tent to create awareness among customer's. It will attract more and more customer's to the hospitality services and impacts positively on overall sales ratio (Ward, 2014).

It is also necessary for staff members to have effective coordination between each other so that services can be provided in appropriate manner. It will impact the morale of guests in positive manner and boost the sales of organisation. Marketing plan and other decisions must be well designed to maintain the standards of internal merchandising (Solomon, 2014). Moreover, electronic billboard and table tent cards can also be used by the management of Ritz Hotel to render information regarding diverse services of hotel. Hotel has to make sure about all the internal merchandising materials to be kept in excellent conditions. In the support of this, it can be said that the management can have display of various unique paintings and pictures in its showcase (Kanagal, 2014). It will attract more and more customer's to the services and provide better opportunities to the Ritz Hotel. Moreover, it is also essential for management of Ritz Hotel to focus on cost effective operations to attain better profit margin ratio. Company can also focus on use of diverse tools that can reduce the wastage of resources which is beneficial for advancement in profitability aspects.

3.3 Evaluation of different promotional activities

As per the structured study, it can be said that there are number of promotional activities that can be adopted by organisation to attract more and more customer's towards hospitality services. Improved use of promotional techniques is beneficial for business firm as it provides advancement in sales as well as profitability aspects (Hoyer, 2012). In order to attract more and more customer's towards hospitality services the management of Ritz Hotel is considering diverse promotional activities. 

With an improved use of direct marketing the management of Ritz Hotel is creating better awareness among wide range of customer's which motivates them to use hospitality services of firm. In this respect, the marketing division of hotel focuses on methods that provides direct contact with its customer's. For example, it allows executives to share information regarding discounts on hospitality services by door to door marketing (Fleck, 2014). Company also uses brochures and direct mails to ensure that customer's are getting detailed information regarding hospitality services of firm.

In addition to this, it can be said that the sponsorship is also one of best way to promote business in great context. In this respect, the management of hospitality firm can sponsor any event in order to create awareness among its potential customer's. It is considered as a good promotional activity that helps business firm to attract more and more customer's towards hospitality services. Other than this, management of hospitality organisation can also focus on sales promotional techniques in order to attain better opportunities (Cravens, 2008). It is a combination of various techniques that provides better retention of customer's and motivate them to reuse services of Ritz Hotel. Company can provide discount offer to customers in order to prompt their morale to use services.

Furthermore, the advertising activities are also beneficial for business organisation as it plays key role in attracting more and more customer's to use services. It is considered as a non personal method that allows management to communicate with diverse customer's that belongs to different needs. In addition to the statement, it can be said that with an assistance of newspapers, television and internet the business firm can target wide range of customer's in effective manner (Andreasen, 2008). It will also facilitate management to amend its sales which is advantageous for attaining better profit margin ratio. 

TASK D

4.1 Evaluation of personal selling techniques

It has been identified that with an assistance of personal selling techniques the business organisation is attaining various benefits in form monetary as well non  monetary aspects. In addition to this, it can be stated that the sales call is one of most commonly used technique that helps hospitality organisations to boost its sales. In this, sales department of Ritz Hotel focuses on designing of sales target so that they can easily accomplish objectives in appropriate manner (Noonan, 2010). It is essential for division to attain detailed information about products and services so that they can easily accomplish their task. With an improved information regarding features of product and services the executive can render information about key benefits of services which will influence customer perception in positive manner (Jobber, 2011). It also allows professional to build better relationship with customer's which is advantageous for firm as it helps in improvement of sales ratio. In this process, the executives uses telephone to contact with customer's.

For example, the Ritz Hotel has set out individual department that performs various telemarketing activities to attract more and more customer's towards hospitality services. In this it is essential for management and sales division to ensure about diverse cultural aspects that can attract community towards hospitality products and services. 

Other than this, in order to have better sales the management of Ritz Hotel has also focused on personal selling technique in which they target other business firms. For example, sales executives target big giants from corporate world and offer them various innovative services as well as discount offers in order to attract them towards services (Wallace, 2010). Moreover, internal selling is also one of effective technique that boosts the business opportunities for organisation. In this respect, it can be said that once guest has entered in hotel premises then staff members can suggest him leisure or hospitality activities in order to meet the demand of the customer. It will improve the customer satisfaction level and impact positively on the sales profit of the organisation. Staff members can also suggest him some other supportive activities in order to meet the key needs of customer (Schwartz, 2006). Impressive words and sentences can also be used to motivate customer's so that he can increase his expenditure on the hospitality services. These kinds of activities are beneficial for business firm as it impacts positively on sales of organisation. 

4.2 Discussion about the influence of operational design on sales revenue

As per the structured study, it can be said that the effectiveness of operational activities has great influence on the sales as well as revenue of the organisation. It means it is necessary for management of Ritz Hotel to focus on operational design in order to attract more and more customer's (Meyr, 2015). With an improved focus on operational design the organisation can easily perform various hospitality activities in appropriate manner which is beneficial for advancement in customer satisfaction level. Operational design of hotel must be in such manner that can impact overall profitability of business in positive manner. 

In addition to this, it can be said that the management of Ritz Hotel can set out various standards that can amend the effectiveness of operational activities. Improvement in operational activities will amend the customer satisfaction  level and lead business to impressive level of success. One of key issue for organisation is to reduce the wastage of resources so that overall cost of operational activities can be reduced in order to meet the goal of advancement in profit margin ratio (Ingram, 2012). Company can also focus on few changes within operational activities in order to meet the objectives of advancement in profitability. If operational activities are effective and customer's are feeling satisfied then  they will recommend other customers also to use the services of the hotel. In order to have better profit margin ratio, the business firm also focuses on saving of energy as well as diverse other resources that can reduce the overall cost. Number of technological tools has been installed within hotel premises to ensure that the power saving activities is being performed in appropriate manner (Wallace, 2010). These kinds of activities are beneficial for business organisation as it provides better opportunity to reduce cost and attain better profit. 

Other than this, it is also necessary for management to ensure that the all divisions of organisation are working in collective manner to improve the effectiveness of organisation.  The operational design is an effective method that helps business in satisfying the needs of clients and fulfilling the needs of people (Schwartz, 2006). Collective working and effective coordination among members boosts the effectiveness of services and provides better satisfaction level to customer's. Various guidelines has also been provided by management to ensure about the operational activities so that cost of operational design can be reduced in order to meet organisational goals. 

4.3 Key principles that can boost sale training programme effectiveness

It has been spotted that there are various key principles that can amend the sales training programme effectiveness in diverse manner. In order to have better business opportunities the management of Ritz Hotel needs to provide various guidelines to the members during training and development program. In this respect, it is necessary for organisation to ensure that the knowledge about hospitality services must be rendered in appropriate manner. With an improved level of knowledge regarding products and services the employees can deal with diverse situations in effective manner (Hayes, 2009). It also allows management to overcome various key issues that impacts business in negative manner. It is also essential for management to provide learning regarding key techniques that can provide effective identification of customer's needs. It will allow employees to identify various demand of customers and render them services as per their needs in order to meet organisational objectives (Johnson, 2005). Training regarding communication skills also need to consider as critical aspect for better improvement in  sale training programme.

CONCLUSION

As per the above study, it can be concluded that the sales development and merchandising are critical aspects for hospitality organisation as it can amend the overall profit margin ratio of firm. It has been spotted that there are number of products and services that hospitality organisation provides to its customers in order to meet the objective of sales advancement. In the support of this, it can be said that the business organisation needs to follow various direct sales techniques and indirect advertisement tools to boost the sales as well as profit margin ratio of organisation. It has been identified that with an assistance of personal selling techniques the business organisation is attaining various benefits in form monetary as well non  monetary aspects.

Moreover, it is also necessary for staff members of Ritz Hotel to have effective coordination between each other so that services can be provided in appropriate manner. It facilitates business firm to attain better opportunities and lead business to impressive level of success.

REFERENCES

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