Consumer Behaviour and Product Mix

This assignment delves into the relationship between consumer behavior and sales performance within a business context. It examines various factors influencing buyer behavior, such as personal values, social influences, and cultural norms. The document further analyzes product mix elements, including width, length, depth, and consistency, and their influence on market segmentation strategies. Ultimately, it aims to understand how businesses can leverage insights into consumer behavior and product mix to enhance sales performance.

SALES DEVELOPMENT
AND MERCHANDISING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
a) (1.2) Significance of product mix in sales and profit..............................................................1
b) (1.3) Importance of market segmentation for maximizing sales of Marriott Hotel................4
TASK B...........................................................................................................................................7
a) (2.1) Factors affect buyer behaviour.......................................................................................7
TASK C.........................................................................................................................................10
a) (4.1) Personal selling techniques..........................................................................................10
b) (4.2) Influence of operational design on sales revenue........................................................12
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................16

ILLUSTRATION INDEX
Illustration 1: Product mix elements................................................................................................2
Illustration 2: Market segmentation approaches..............................................................................6
Illustration 3: Buyer behaviour........................................................................................................9

INTRODUCTION
Sales development is a technique of promoting products of the organisation in market. It
influences productivity, profitability and market sustainability of enterprise. This report is to
increase understanding towards sales development techniques and merchandising for services
with the example of Marriott hotel. It is wide spread food and accommodation service provider
of UK whose facilities are demanded from different countries of the world. In this way,
significance of product mix and its impact on sales and profit of the entity is to be identified.
However, usefulness of market segmentation in enhancing sales revenue of the hotel is
discussed. Including this, factors which impact buyer behaviour for food services of the entity
can be identified. Along with this, personal selling techniques for promoting services and impact
of operational design on sales revenue of are to introduced. Therefore, effective knowledge
towards sales promotion techniques and its impact on Marriott Hotel's revenue can be understood
with the help of this report.
TASK A
a) (1.2) Significance of product mix in sales and profit
Different dimensions of a product is called as product mix. In this process, products are
different, width, depth and length but have same features. However, entity provides variety of
services according to different countries' people interest and culture. It influences productivity
and profitability of the hotel as increasing revenue. Therefore, market position of the
organisation and its competitiveness get affected (Homburg and et.al., 2017). Apart from this,
under product mix, quantity and quality of food is also analysed on which variety of ideas are
generated for improvement. However, it is able to maximize satisfaction level of its customers on
large scale also impact on demand for goods and services. Besides this, dimensions regarding
mixing taste, flavours and ingredients in food are determined for which promotion of services is
organised. In this way, price is determined as different on different quantity, quality of food
affect optimum utilization of resources and fund. In this regard, product mix elements which are
essential for higher revenue and increasing profitability of Hilton hotel are as:
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 Width:
It is considered as number of product lines which a company produces. It is effective for
building market share and also techniques diversified to other industries (Ejiko, 2015).
Therefore, it builds width of product mix and different ideas are created for management of
entity and marketing of its services for enhancing its revenue.
 Depth:
2
Illustration 1: Product mix elements
(Source: Elements of product mix, 2016).

It includes quantity, flavour and material used in preparing and providing food services of
any hotel. For example; if Marriott hotel sells three sizes and two flavours of food then its depth
is evaluated as six (Gorman, 2015). Therefore, specific product line is determined which is
effective for enhancing revenue and profit of the hotel.
 Consistency:
This product mix element is recognised that how two product lines are related to each
other. For example; analysing relation of selling food and beverage in terms of their production
and distribution system generates ideas for proper management. However, systematic
management of services is recognised which impact on sales revenue and profit earning capacity
of any enterprise (Okonkwo, 2016). Thus, consistency is effective for producing services linked
with sales revenue and profit margin of the entity.
These elements are effective for decision making regarding product and services. For
which, quality, quantity of used material, price determination and places for providing services
are determined. Including this, promotion of services as launching and advertising them are
decided. It influences sales revenue and profit margin of Marritt Hotel also generates variety of
ideas for improving services and satisfying customers at higher level (Collins and Frydenlund,
2015).
As analysing width, depth and consistency of food items provided by Marriott hotel
generate variety of ideas for appropriate decision making regarding business and marketing
activities. It impacts on productivity and profitability as well sustainability for longer time
period. However, product mix tools are effective to improve efficiency and quality services of
variety of food provided by entity on large scale.
However, importance of product mix on sales and profit of Marriott Hotel can be
understood as:
 Maximizing customer satisfaction level:
It is beneficial for organisation to provide variety of dimensions in services to satisfy
customers on larger scale. However, according to income earning level of consumers, price is
determined differently for variety of food in quantity. However, customers' satisfaction get
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maximized with its food and accommodation services. For example; providing same quality of
Chinese food in different quantities as half and plate as for different costs impact on sales and
revenue of the Marriott hotel as well customers get satisfied at most (Erevelles, Fukawa and
Swayne, 2016). Hence, it is analysed that product mix influences sales revenue and profit
earning capacity of the entity.
 Reducing wastage of food:
It is essential to provide food and beverage in different quantities according to set prices
remain helpful for utilization of resources and fund adequately. Therefore, its wastage gets
reduced for which proper demand must be determined. However, it is effective for company to
use resources and funds effectively to enhance further productivity and profitability. In this
regard, management of production and distribution system is balanced (Zayum, Aule and
Hangeior, 2017). Thus, product mix is useful for proper use of materials for providing services of
enterprise. In addition to this, several ideas are generated for improving qualities of services,
attracting and encouraging customers for services at maximum level and so on. It is related with
enhancing sales revenue and profitability of the entity efficiently affect further decision making
for optimizing products and services.
 Potential growth:
Setting different sizes, weight, range and quantity of food according to prices impact on
growth of entity. It includes productivity, profitability and marketability. However, development
of entity is determined in respect of demand for services and profit margin. Including this,
business get expand through online marketing and providing parcel facilities to customers. Thus,
expansion of entity is recognised in different ways as entering new market, establishing and
maintaining good relations with customers (Bezabeh, 2017). It is linked with sustaining market
position of the entity for longer time period and increasing its efficiency. Therefore, product mix
is benefited for potential growth of the hotel and enhancing its sales and profit.
b) (1.3) Importance of market segmentation for maximizing sales of Marriott Hotell
Market segmentation is the process of dividing customers according to their interests and
requirements into different groups by which actual market position is identified. However,
customers' choices get segmented in groups as geographic, demographic, psychological and so
on. It is helpful for meeting consumers' expectations and enhancing profitability and
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competitiveness of the entity at maximum level. Moreover, it is considered as key element for
sales development and promoting hotel's services in market (Scott and et.al., 2015). For this
purpose, researcher must conduct survey of customers for asking questions related to hotel
entity's services to analyse market position and their satisfaction level. It is also done through
online survey and recognising service users' views through comments on social networking
platforms, contact via email and so on. Therefore, variety of ideas are generated for identifying
recent market trend and increasing satisfaction level of customers with services provided by the
hotel. In accordance to this, different segments of market can be understood as:
 Geographic segmentation:
It includes factors as population and customers' attitude belonged to a particular area for
which their attitude towards services of the organisation. Under this segmentation, customers of
different countries' and their varied choices are determined for providing services accordingly
(McClaren, 2013). However, variety of food and on behalf of their suitability, group is parted for
achieving their attraction towards hotel's services effectively.
5
Illustration 2: Market segmentation approaches
(Source: Market Segmentations, 2016).

 Demographic segmentation:
Under this market segmentation, customers are divided in respect of demographic factors
as age, gender, family size, income and education. On the basis of segmenting entire market
according to this factor, several ideas are generated for hotel's services and providing
comfortable facilities to its consumers effectively (Choudhury and Harrigan, 2014). Therefore,
demographic market segmentation is also effective tool for further production and distribution
system also impact on profitability and competitiveness of the entity.
 Behavioural segmentation:
This market segmentation is related to analysing customers' buying behaviour under
which their attitude towards services of the organisation is identified. In this segmentation,
service users' attitude, perception and interests are determined for variety of food and improving
quality efficiently. Moreover, their lifestyles, money and time as well different other
determinations are recognised (Moore, Hopkins and Raymond, 2013). Thus, several ideas are
generated for achieving their satisfaction and increasing demand for services on larger scale.
 Psychographic segmentation:
Under this market segmentation, personal psychological factors of customers are
identified including attitude, perception, belief etc. On behalf of analysing these factors,
strategies are prepared for providing food services and accommodation according to their
requirements and their own beliefs. It is linked with productivity and profitability of the
organisation also impact on sales development (Ratliff and Rubinfeld, 2014). Hence, segmenting
customers' in terms of psycho-graphic segmentation remain useful for higher revenue and
continuing good market position.
From all the above-mentioned segmentation processes, it will be appropriate for Marriott
Hotel to segment customers for analysing actual market position using psychological factors. In
accordance to this, customers' attitude, perception, beliefs are to collected for which sales
development ideas as well for encouraging them towards services are recognised. It is helpful in
maximizing profitability and sustaining market position of the hotel. However, it is essential for
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higher sales revenue and increasing profit earning capacity of the entity affect management of its
operations. Including this, it is also beneficial for optimum utilization of resources and fund as
well effective planning for further activities (Shiver and Perla, 2016). Along with this,
knowledge for variety of food and adopting new technologies for accommodation services get
enhanced. It influences demand for services linked with productivity and profitability of the
entity. Therefore, market segmentation is essential for sales development and increasing profit
earning capacity of the hotel at higher level.
TASK B
a) (2.1) Factors affect buyer behaviour
Buyer behaviour refers as study of an individual, group or organisation's attitude and
behaviour towards services provided by entity. It is done the basis of different factors as
geographic, demographic, psycho-graphic and behavioural etc. Therefore, customers' behaviour
including belief, social and cultural system as well recent trends in terms of food varieties and
better accommodation is identified (Silberman and Biech, 2015). It impacts on sales promotion
techniques and different factors for marketing and sustaining its position in market for longer
time period. However, factors affecting buyer behaviour can be understood as follows for
encouraging customers towards food services and accommodation of hotel as:
 Cultural factors:
These factors include as culture, sub-culture and social classes of customers for which
different countries' people culture is identified. In this regard, various ideas are generated for
providing food in varieties and accommodation according to a nation's specific culture.
Moreover, various ideas are generated for Hilton hotel's services to achieve customers' attraction
for maintaining it for longer time period (Yang, 2014). For example; different external sales
development techniques are recognised for promoting services and revenue as well profit margin
of Marriott Hotel will be increased. By analysing Chinese culture, effective services can be
provided to country's people efficiently also able to maximize their satisfaction level. Including
this, adopting flavour and tradition of Chinese food will be comfort for Chinese. Including this, it
is related with price determination for its services and increasing comfortability of the customers.
 Social factors:
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For buyer behaviour, social factors are analysed including reference group, family and
status etc. For which, several ideas are generated regarding customers' social standard, family,
group and status to increase their satisfaction level with its services. Under this factor analysis
regarding customers' social status, family and all are recognised on which variety in food and
accommodation facilities are adopted to increase customer loyalty (Bilginer and Erhun, 2015).
Thus, demand for services get increased impact on sales revenue and profit earning of the entity.
Hence, it is recognised that for buyer behaviour, analysing social factors is needed to enhance its
sales revenue and sustaining Hilton hotel's position in competitive market for longer time period.
 Personal factors:
For buyer behaviour, personal factors of an individual is identified including age,
occupation, economic situation, lifestyle and personality etc. However, affordability of an
individual and their personality are identified for which ideas are generated for price
determination on services. For example; by analysing frequency of people belonged to different
age group is suitable for providing services also sales promotion techniques are determined
(Biswas and et.al., 2013). It generates effective sales techniques for promoting services of hotel
and encouraging customers for taking advantage of them. Therefore, analysing personal factors
8
Illustration 3: Buyer behaviour
(Source: Factors of buyer behaviour, 2016).

are beneficial for buyer behaviour as well efficient for higher sales revenue and profit earning
capacity of the entity.
 Psychological factors:
Under this buyer behaviour factor, motivation, learning, perception, belief and attitude
are identified. On the basis of identifying these factors, his/her attitude, perception and belief
towards food services and accommodation of Marriott Hotel is identified. Therefore, variety of
choices and interests of people are identified for fulfilling their demand. It is linked with
productivity and competitiveness of hotel (Cabral Gidlund and Sales, 2014). For example;
customers' attitude on different food as Chinese, Mexican, Italian etc are recognised. Hence, an
individual's behaviour is analysed affect production and distribution of services as well effective
for optimum utilization of materials used in preparing and serving meal.
Therefore, buyer behaviour factors are essential to identify customers' requirements and
interests towards variety of food and accommodation of Hilton hotel. It is helpful for using
appropriate sales technique and marketing of its services. Including this, it is beneficial for
maximizing sales revenue and profitability of the entity. Apart from this, effective motivational
tools can be used for encouraging customers regarding innovation in food services (Estampe and
et.al., 2013).
For this purpose, motivational tools are used as; at first identifying customers'
requirements, promoting services as for attracting them through online marketing and so on.
However, setting scheme and discount on services also motivate customers for taking advantage
of hotel's food and accommodation. It is linked with sales promotion and increasing
marketability of the entity efficiently (Dufosse and et.al., 2014). Hence, analysing buyer
behaviour remain key component to encourage people for food and accommodation of hotel's
services at most.
TASK C
a) (4.1) Personal selling techniques
Personal selling is occurred when sales representative meets with client personally for
exchanging goods and encouraging for purchasing the product. For this purpose; different
techniques are used affect marketing and profitability of the entity. However, for advertising
food services of hotel, seller applies techniques as; at first analysing his requirements, up-selling
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opportunities, product knowledge, encouraging repeat business as motivating for visiting the
hotel again etc. In accordance to this, role of staff in sales and promotion of services can be
identified affect revenue and profitability of the hotel (Homburg and et.al., 2017). In this regard,
some essential techniques for personal selling can be understood as follows:
 Customer needs and wants:
At first, it is essential to analyse customers' needs and requirements towards food services
of hotel. Therefore, several ideas are generated for promoting them in accordance to their
behaviour and segments. It is helpful to encouraging customers also able to increase sales
revenue of the entity. In this process, their attitude, perception and social systems are recognised
by which their satisfaction level with services can be maximized. However, effective personal
selling techniques are determined to be applied for encouraging them impact on demand and
profit earning capacity of the entity effectively (Gorman, 2015). In addition to this, it is
beneficial for production and distribution system as it can be balanced accordingly. Hence,
marketing of new creation in food service of the entity will be succeed through analysing
customers' needs at first also able to increase its sales revenue.
 Product knowledge:
During personal selling of food services of Marriott Hotel, providing all details regarding
it including price, material and flavours used in food as well quantity and quality of ingredients
is able to promote users for food. Under this process, description about new creation and quality
of food, reasons behind liking it and all is mentioned. Therefore, demand for food will be
influences sales revenue and profitability of the entity at maximum level (Okonkwo, 2016).
Including this, it will be fruitful for the hotel to use technique for example; using social
networking sites and giving all details as well unique features of food effectively. It will be
efficient for higher sales revenue and profit margin of the entity on larger scale.
 Up-selling opportunities:
It aims to increase sales revenue and profitability of hotel at the highest level by
encouraging people for purchasing expensive goods and services. For example; providing
Chinese food services in UK but on higher price than available in China. In this process, specific
features and comfortability of customers are targeted impacts on revenue and profitability of the
entity. Therefore, by using this approach will be effective for hotel to encourage users towards
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uniqueness and satisfying with the new creation (Zayum, Aule and Hangeior, 2017). Along with
this, it is forecast that applying this technique will be suitable for entity in terms of higher
revenue and income earning level of the hotel.
 Encouraging repeat business:
It can be understood with the example of Marriott hotel as through encouraging
customers for food services of its hotel again is to increase income level and profit earning
capacity. It can be done through establishing and maintaining good relations with customers
affect repeat demand for food. Including this, it remains appropriate for increasing customer
loyalty and sustaining its market position with facing competitions. Therefore, encouraging
service takers for visiting the hotel is to maximize sales and improving goodwill in competitive
market (Bezabeh, 2017). For example; facilitating customers with discount on food services of
the entity, contacting with them and informing about new creations in food variety etc. It will be
helpful for repeat purchasing and increasing income level of Hilton hotel also able to sustain
their loyalty towards its food services.
Recommendations for improvement:
For promoting food services of hotel, some essential recommendations are needed to be
considered. It influences promotion of services, its sustainability in competitive market and
improvement in quality. However, suggestions for selling and promoting services of hotel in
accordance to different countries' system and culture remain effective for its productivity and
profitability (Teck and Cyril, 2013). In this regard, recommendations for improvement can be
understood as:
 It is required to analyse different countries' people’s choices and attitudes towards food
and services of hotel.
 All recent technologies should be adopted for variety in food and improving
accommodation of the entity.
 Through encouraging staff workers to deal with customers effectively as well fulfilling
their requirements is needed for sales development.
 An appropriate selection of sales development technique must be analysed critically to
attract and encourage customers for food and accommodation of the entity.
 All strategies should be customer and future oriented by which demand for services and
revenue of the entity can be maximized.
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Therefore, by considering these recommendations, productivity and profitability of
Hilton hotel can be increased at maximum level. However, improvement in all services can be
determined for further implementation and maintaining its market position. Hence, sales revenue
and profit earning capacity of the entity can increase effectively also impact on further operations
and market position of the hotel for longer time period.
b) (4.2) Influence of operational design on sales revenue
Operational design is considered as framework for planning and decision-making
regrading operations for hotel entity. However, systematic planning procedure is required for
increasing sales revenue and profitability of for hotel. Including this, implementing strategies
step by step for the organisation is structured including cost estimation to be incurred and time
frame. Therefore, systematic structure is framed to reach out the set target of entity under this
design. It is beneficial for increasing productivity and profitability of entity for providing food
services and accommodation effectively (Ratliff and Rubinfeld, 2014). Moreover, it also
influences marketability and competitiveness for longer time period affect further
implementation and effective management of its operations. In accordance to this, different
operational designs and their impact on sales revenue of Hilton hotel can be understood as
follows:
 Ergonomics:
It is study of workers' efficiency in the organisation as how they perform their job and
contribute in team work as well. Under this approach, capacity of an individual staff is identified
for working in group. However, it aims to create safe, comfort and positive environment of the
entity through fulfilling their requirements also remain helpful for encouraging towards better
work performance. In this regard, different ideas are generated for organising training and
development program to improve their skills. It is useful to encourage workers for effective
support in preparing and serving meal (Moore, Hopkins and Raymond, 2013). Including this, it is
considered that motivated workers perform their work more efficiently also create good
coordinate for entity's effectiveness. For example; if worker listens towards customers' needs,
fulfil their requirements and maintain good relationship then demand for food services will be
enhanced. It influences sales revenue and profitability of Marriott Hotel. Therefore, ergonomics
plays effective role in staff performance management and creating friendly environment of the
workplace.
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 Workflow:
Operational design as workflow is to create frame of all stages for operation of business
as manufacturing, processing, marketing and so on. Therefore, process for preparing to serving
food is structured under workflow approach of hotel. In addition to this, for preparing meal, used
material including cost on purchasing resources, time frame for all processes are identified.
Moreover, serving food to customers and its impact on profitability and competitiveness of the
entity is determined (Lund and Smith, 2015). Therefore, workflow as operational design is
essential for higher income level and increasing customer loyalty towards variety of food and
accommodation of organisation effectively.
 Equipment:
It is considered as tools and materials used for managing operations, performance of
workers, production and distribution system of Hilton hotel. In accordance to this, equipment
used for preparing and serving meal, maintaining contacts with customers, staff management of
entity are recognised. Therefore, variety of ideas are generated for improving services and
working efficiency of the staff. Thus, operational design is beneficial for adopting new
technologies for variety in food and improving accommodation of the hotel. It is also effective
for enhancing working efficiency of the workers effect organising training and development
program. Under this approach, equipment used for proper management of resources and
performance of staff are analysed affect workers' efficiency (Dufosse and et.al., 2014). It can be
understood with the help of an example as; if Hilton adopts new technologies for providing food
services of different tastes then demand for its services will be increased which influences sales
revenue and profitability of the entity. Hence, equipment is considered as an effective
operational design for the entity to maximize income level and its sustainability in competitive
market for longer time period.
 Level of staff:
Different workers have different efficiency of work for contributing in team work to
achieve its goal efficiently. Therefore, it is needed to be analysed each individual's capacity for
promoting food and encouraging customers for it. In this regard, different levels of workers are
determined for segmenting work among them and helpful to encourage for better performance
(Shiver and Perla, 2016). However, workers' requirements can be fulfilled towards services of
13

hotel and effective contribution in preparing and services meal as well dealing with customers
efficiently. Likewise, planning for framing structure regarding levels of staff and segmenting
work according to their efficiencies remain effective for entity's increasing revenue and
profitability. For example; creating structure to present workers' performance is to analyse and
dividing work among them effectively. Therefore, all workers can perform effectively as well
they will be able to perform better with good coordination for team work.
Hence, it is recognised that operational design is essential for analysing entire operations
and further generating ideas for improving efficiencies. It will be effective to frame all activities
in structural form affect development and effectiveness of hotel. Including this, systematic
planning procedure is prepared to be implemented for improving skills and customer loyalty
towards food services and accommodation of the entity (Yang, 2014). Besides this, proper
structure is prepared for organisation and increasing its effectiveness on larger scale affect
revenue position and competitiveness.
CONCLUSION
From this report, it is concluded that sales development is essential for hotel to increase
sales revenue and its profitability. In this regard, different approaches and techniques of sales
promotion has been identified. Moreover, significance of product mix for enhancing income
level and profit of the entity is recognised. However, different market segmentations for
analysing market position is determined affect demand for food services and accommodation of
the hotel. Along with this, several factors affect buyer behaviour including profitability cultural,
social, personal and psychological are identified for providing services according their
comfortability. However, personal selling techniques for marketing of food services and
encouraging customers for taking advantages has been identified. Apart from this, operational
designs and their usefulness in increasing revenue and profitability of the entity is determined.
Therefore, it is recognised that sales promotion techniques play effective role in income earning
and profit maximisation for Marriott hotel has been understood with the help of this report
effectively.
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