(PDF) Sales Development and Merchandising | Assignment

Sales Development and
Merchandising

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) How the product mix contributes to sales and profits ............................................................1
b) How market segments contributes to maximise sales............................................................2
TASK 2............................................................................................................................................3
a) Factors affecting buyer behaviour...........................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
.........................................................................................................................................................6

INTRODUCTION
Sales development is consider as an activity that sits among the marketing and the sales
function of business which help in identifying and connecting with buyers in order to enhancing
profitability level. In addition of this, merchandising is also consider as an activity of promoting
goods and services in market place. Increasing profitability is one of the important activity for
business organization to established competitive image at market place. In service sector, it plays
a significant role in inviting customers towards the services. By this firm can easily increase their
overall profitability (Berčík and Horská, 2015). In addition of this, merchandising is a
combination of various activities that help in promoting company products and services. With
the assistance of this company can easily capture market share from its rivals. Present report is
based on Four Seasons Hotel London at Park Lane, is luxury 5- star hotel in London and it is
established in 1970. The main aim of this hotel is to increase their profitability level by serving
quality services to its customers as per their needs and wants. This report cover product mix
which directly contribute in enhancing sales and profits of the company at market. Along with
this, various factors are also discussed in this report that directly affecting the buyer behaviour.
At last evaluation of personal selling techniques is also mentioned here.
TASK 1
a) How the product mix contributes to sales and profits
Product mix refers to the total number of product line which are offered by the company
to its customers. Mainly, it is used for enhancing sales of the company at market place. In this
context, the product line may range from one to another and firm have various products in same
product line. When all these product line grouped together is called product mix of the company.
The main benefit of a product mix is that it provides additional opportunities to reach customers
at market. As, it offers ability to the company in order to expand their customers base by offering
more and quality products in more niches. In context of Four Seasons Hotel London at Park
Lane, they also use product mix which helps them in increasing sales by serving their services to
its customers according to their needs and wants.
Four Seasons Hotel London at Park Lane offer wide range of products to its customers
with the aim of attaining their higher satisfaction level. This may lead in building competitive
brand image of hotel at market place (Huang, Liu and Ho, 2015). Selling a different variety of
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products may help hotel to boost their sales and profit potential and at the same time also reduces
the dependence on one product. This is the main reason that company use product mix and
improve their market share. Four Seasons Hotel London at Park Lane might add clean and
hygienic room services and also add restaurant services to its customers. Mainly product mix
provide diversification opportunities to hotel in which they serve various services to maximize
sales (Isaenko and Degtyar, 2015). Along with this, creating an effective product mix not only
enhance the reputation of the company but also provide quality services to its potential
customers. In context of this, product mix includes three dimension which can be understood by
following points:
 Product Width: This dimension constitutes of the number of product line that provide by
the company to its customers with the aim of increasing their profitability level at market
place. In context of Four Seasons Hotel London at Park Lane, the product width is wider
as it includes room services, restaurant services, and many more which aid in increasing
the profitability level of the company.
 Product Length: It refer to the total number of products served by the hotel to its
customers with the aim of enhancing the chances of capturing market share. In this length
of the services in accommodation in Four Seasons Hotel London at Park Lane includes
free Wi-Fi, TV. and many more . All these are help in satisfying customers and attaining
higher profitability level at market place.
 Product Depth: It depicts the variety of products offered by hotel. As it includes
variables such as colour, sizes, level of complexity and many more. By using this,
company attract customers towards its offerings to enhance their sales.
 Consistency: It is related to how closely related each product lined are to each other.
Mainly, it includes production and distribution channels. As it help in improving the
brand image of the company at market place.
All these are the important aspect of product mix through which company can make their
customers base strong and attain competitive advantage from its rivals. Furthermore, product mix
of Four Seasons Hotel London at Park Lane is very attractive as it provide hotel services, resort
services along with some valuable addition. By this, hotel enhance their sales and profitability as
well. In service industry, product mix is played as a significant role in inviting customers
towards its offerings. As it is sum of all the physical and psychological services that offered to
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the customers in order to attain their higher satisfaction. In this context, a diversified mix of
products assist in creating strong brand image in-front of customers.
b) How market segments contribute to maximise sales
Market segmentation consider as an effective process of dividing a market and customers
into groups, segment and characteristics. By segmenting the market, company can easily serve
quality services to its customers as per their requirements (Kumar, Gupta and Kishore, 2014).
This is the main reason that company segment their market and also increase the chances of
attaining their set targets in market place. In context of Four Seasons Hotel London at Park Lane,
is also divide their market on the basis of sub segmentation in market. Mainly, cited hotel is
luxury 5- star hotel operate their business at UK with the aim of capturing larger market share
from its rivals. For attaining the same, hotel offer their services as per particular segments.
Mainly, hotel target high class people who prefer to consume luxury services (Martynova and
Valeeva, 2015). With the assistance of this company can easily increase their sales and enhance
overall profitability level at market place. As Four Seasons Hotel London at Park Lane, has
segmented its market in following segments such as:
Luxury: Under this market segment, Four Seasons Hotel London at Park Lane target their
customers on the basis of customers income and taste. In relation of luxury, hotel target
customers who are willing to pay more to attain high level of satisfaction. For attaining the same,
hotel provide them luxury room with more facilities. This will directly contribute in enhancing
the chances of attaining higher profitability level at market place. In this hotel target those people
who pursue luxury lifestyle and having high income. With the assistance of this they can easily
increase their profitability level
Economy: In this, hotel serve room and restaurant services on the basis of customers taste
and preferences which may lead them in inviting more and more customers over there. In
economy class, hotel provide services to customers who wants to perfect accommodation to
attain better satisfaction.
Budget: In this, Four Seasons Hotel London at Park Lane provide services to the
customers as per their budget and their taste as well. For example, travellers and high class
people prefer luxury services so that company offered them premium packages to attain their
satisfaction.
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All these market segments are help Four Seasons Hotel London at Park Lane to
established their competitive brand image at market place and at the same time also make their
customers base more strong.
TASK 2
a) Factors affecting buyer behaviour
The buyer behaviour refers to process of decision making of customers towards the
company products and services before, during and after purchasing products and services. In
addition of this, it also affects the organization performance as it determined the marketing
strategies. In context of this, Four Seasons Hotel London at Park Lane providing accommodation
and food services to its customers so that it is important to understand their needs and wants
towards its services (Mehta and Chugan, 2014). Furthermore, customers Buyer behaviour is also
played a vital role in analysing the decision making process of people who are involved in the
buying and using products of hotel. Thus, company is responsible for analysing customers’
behaviour while purchasing company products and services (Rosenau and Wilson, 2014). With
the assistance of this company can easily improve the chances of attaining higher satisfaction of
customers. Mainly customers’ buyer behaviour process includes various stages such as problem
recognition, information search, evaluation of alternatives, purchase and post purchase
behaviour. All these are the important stages that evaluate by the hotel with the aim of analysing
buying behaviour of consumers towards its services.
Organisational Buyer Behaviour model: It is a complex decision making and
communication process that includes selection and procurement of products and services by
organizational buyers. In market place, not only customers are buyer in market but organization
also needs goods and services to operate their business. As it includes procedures, resellers, raw
materials, finished goods and another services. These are the directly affect the buying behaviour
of the company and its customers as well. In this context, stimulus response model is also used
by Four Seasons Hotel London at Park Lane to analysis the customers buyer behaviour towards
the company services. As buyer's characteristics and decision process help in eventuating the
certain purchase decisions in most effective manner.
Furthermore, some another factors are also consist that may affect the buying behaviour
of the customers towards the company and its services as well. Thus, it is important for Four
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Seasons Hotel London at Park Lane to analyse the customers behaviour while purchasing its
products and services. With the help of this, company easily capture larger market share and
attain competitive advantage from its rivals. In this context PESTLE analysis is also affect the
customers and their buying behaviour as well.
 Political factor: It is important factor that directly affect the buying behaviour of the
customer. As UK government is stable in nature so that it positively impacts on the
performance level of the company. This is the main reason that customers easily attract
towards Four Seasons Hotel London at Park Lane services because doesn't required to
change the policies within their business activities.
 Economic factor: Four Seasons Hotel London at Park Lane is luxury hotel in UK which
influence customers’ attention towards its services. As number of customers are attracted
who has high income level and easily afford its services (Sahni, Jain and Jain, 2014).
 Social factor: This factors is related with the customers’ taste, culture and lifestyle. In
this Four Seasons Hotel London at Park Lane offer high class services which effect on
the customers buying behaviour because hotel serve their services as per customers’
needs and wants.
 Technological factor: Four Seasons Hotel London at Park Lane use various innovative
technologies within their business like online booking, online services and delivery. With
the assistance of this, customers easily attracted towards its offerings.
 Legal factor: This factor is important for the company to follow because it help in
building positive brand image at market place (Tarasova and Kadatskaya, 2015). In this
context, Four Seasons Hotel London at Park Lane follow all the legal rules related with
customers and employees as well. As hotel ensure that all the services are effectively
served to the customers ethically.
 Environment factors: It is also important factor for hotel to improve their brand image at
market. Thus, company needs to use eco-friendly technologies. In this hotel needs to
includes more friendly and environment related products which help in creating positive
brand image at market place.
CONCLUSION
From the above mentioned report it has been evaluated that sales development is
important for business organization to increase overall profitability level at market place. With
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the use of this, company promote their services in front of customers and make them aware
towards its offerings. This will directly contribute in increasing market share of the company and
at the same time also make strong customers base. Along with this, different factors such as
PESTLE, Personal preferences, socio cultural and economic factors are directly affect the buying
behaviour of the customers. Furthermore, market segmentation is also considered as an important
activity for hotel in which they serve their services on the basis of market segment. By this, hotel
can easily maximize their sales at market place and established competitive brand image.
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REFERENCES
Books and Journals
Berčík, J. and Horská, E., 2015. Sound System and Noise as Essential Elements of Visual
Merchandising in Selected Retail Chains in the Slovak Republic. European Journal of
Business Science and Technology. 1(1). pp.15-23.
Huang, Y. S., Liu, L. C. and Ho, J. W., 2015. Decisions on new product development under
uncertainties. International Journal of Systems Science. 46(6). pp.1010-1019.
Isaenko, E. V. and Degtyar, O. N., 2015. Self-service in retail trade of consumer cooperation:
assessment and strategy of development. The Journal of Internet Banking and
Commerce.
Kumar, A., Gupta, S. L. and Kishore, N., 2014. Measuring Retailer Store Image: A Scale
Development Study. International Journal of Business & Economics. 13(1).
Martynova, O. V. and Valeeva, Y. S., 2015. Development typology for retail networks in the
russian federation. Mediterranean Journal of Social Sciences. 6(1 S3). p.155.
Mehta, N. and Chugan, P. K., 2014. Consumer's Perception for Visual Merchandising of
Lifestyle Apparel Stores. International Research Journal of Marketing. 2(3). pp.53-60.
Rosenau, J. A. and Wilson, D. L., 2014. Apparel merchandising: The line starts here. A&C
Black.
Sahni, D., Jain, V. and Jain, A., 2014. The Impact of Visual Merchandising on Impulsive Buying
Behavior of Young Consumers,". Asian Journal of Business and Economics. 4(4.4).
Tarasova, E. E. and Kadatskaya, D. V., 2015. Theoretical aspects and methodological
approaches to sales services quality assessment. The Journal of Internet Banking and
Commerce.
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