Analysis of Sales and Merchandising Concepts

The provided document is a collection of research papers and studies related to sales and merchandising. It covers topics such as the effectiveness of sales force training in retail organizations, the relevance of business ethics empowerment through supply chain development and merchandising management, and the importance of customer co-creation in new product development. The document also includes a discussion on the symbiosis between children's television and merchandising, as well as an exploratory study on using 3D avatars as online salespeople. Additionally, it provides an analysis of within-industry diversification and firm performance, synergy creation, and capability development.

Sales Development
and Merchandising

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Key components of a product ..............................................................................................1
1.2 Elements of product mix and their contribution in sales and profit......................................2
1.3 Contribution of market segmentation in sales maximization................................................3
TASK 2............................................................................................................................................5
2.1 Factors affecting buyer behavior...........................................................................................5
2.2 Advertising media for sales development ............................................................................6
2.3 Role of external merchandising............................................................................................6
TASK 3 ...........................................................................................................................................7
3.1 Layout and design affect customer spend.............................................................................7
3.2 Evaluation of internal and external merchandising materials...............................................8
3.3 Promotional activities for different scenarios.......................................................................9
TASK 4..........................................................................................................................................10
4.1 Personal selling techniques ................................................................................................10
4.2 Influence of operational design on sales revenue...............................................................10
4.3 Principles included in sales training program.....................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Sale is one of the main component of every enterprise this is the one which contribute a
lot in success every enterprise. Every organization do various efforts to influence customers to
buy firm’s product in order to increase the number of profit. Merchandising is a process of
promote the sale of goods (Mjøs, 2010). It is very essential for the marketer of every
organization to use effective techniques and tools for promoting the product. Choice of
promotion tool become more complex when it comes the promotion of intangible goods such as
services. Hilton Watford hotel one of the popular hotel based in UK is taken under this report for
study. Hotel is famous in various areas of UK due to offering innovative products and services to
its clients. Main feature of hotel is that it is situated in center of city and is surrounded by hill
stations. Hotel offer facilities such as event organization and conference rooms to business class
people. Main components of a product and contribution of various elements of product mix in
sales maximization is all discussed under this report. Different factors which affect the behavior
of a buyer and how layout and design of hotel influence customers to spend more is all detailed
in this report. Along with this, internal and external merchandising of Hilton hotel and various
techniques of personal selling which can be used by enterprise is all detailed in this.
TASK 1
1.1 Key components of a product
A product is known as a final offering of a firm to its customers for satisfy the needs and
wants of its customers. For attract large number of customers and for capturing a larger market
share it is very necessary for an enterprise to make its more attractive and featured so that
different needs and requirements of customers can be satisfied. Before starting the production
process it is very essential for business owner to first identify and evaluate the key components
of a product. Hilton Watford hotel use marketing as a tool to make its products more attractive
among customers and influence them to buy the same. Hotel provides those tangible and
intangible benefits to its clients (Balasescu, 2012). Effective delivery of products and services
attract more number of customers. Effective infrastructure, lucrative building, different services
like discount offer to various number of people of different class and various facilities of hotel
are unique as compare to its competitors which attract potential customers towards it.
1

Hilton Watford hotel offers different kind of products to its customers related with facility
which can be understood by following points:
 Luxury bedrooms of hotel offer various features such as bed sheets, package, rotated
protection alarm clock, glo lamp, satellite TV, coffee brew trays and air conditioning
and many more.
 Bars and restaurant of hotel offer variety of food like non vegetarian, vegetarian, sea
food and many more. Further bar of hotel serve different kind of bears to customers.
Gym of hotel offer various services to people of luxury class and business class. For
the entertainment purpose a casino is build in hotel this is the main factor which
attract more number of customers to visit the hotel. Along with this other features of
hotel is that it provide the facility and place for private functions like wedding. Hotel
timely organize celebrateory function which work as an effective marketing tool and
is targeted more customers.
 Hilton Watford offer products having different features to fulfill the requirement of
different kind of customers. Hotel has stylish dining and drinking venues. Effective
parking facilities of hotel are situated at middle of the city. Along with this, hotel
offer more than 30% discount to public sector employee and government at
weekends.
1.2 Elements of product mix and their contribution in sales and profit
Contribution of product mix in increase sales and profit of Hilton Watford hotel is
described under the following points:
Place and distribution: Effective and right place of the product help customers in easily
access the product to satisfy their needs. Location of hotel is situated in center of Watford.
Nearer area of city are hill stations and outskirts. Hotel use both direct and indirect methods to
penetrate large number of customers. Under direct method hotel sales under the sales team,
website booking system, global distribution system and banner advertisements. On the other
hand in indirect method firm build and maintain good relations with event planners and travel
agents. Further hotel effectively use online travel portals and focus on various promotional
activities such as public relations and mail campaigns.
Price strategy: One of the main feature of every business enterprise is that they attract
customers by offer them discount and devalue facility on services and products (Utami and et.
2

al., 2014). Firm concentrate on people of different class like luxury, business class and provide
special discounts to government employees at weekend. This pricing strategy of firm attracts
more number of customers and enhances their loyalty towards brand. All this help hotel to
generate large number of profits then its rivals.
Communications and promotions: Communication is one of the vital element behind the
success of product of every organization. This is the only medium which provide offer to
business to communicate with its customers and attract them towards the company’s offering.
Today number of hotels adopted various techniques of sales and marketing to communicate with
its target market. Hilton hotel use different kind of communication channels like commercial
advertisement, websites, social media (Facebook, youTube, twitter, Google, billboards and many
more).
Service offered: One of the main feature of Hilton Watford hotel is that it deliver world
class services to their customers and guests (Sohl, 2011). Luxurious rooms and skilled
workforce of hotel help in build and maintain good relations with customers. Firm not only focus
on its old customers but also penetrate new clients towards its product. Basically hotel offer
various type of product, banqueting rooms, guest rooms, seminar rooms, conference rooms,
effective check in and check out services including parking facilities and many more. Further, in
order to attract people of business class firm offer them services like internet connectivity, WiFi
facility, video conferencing and many more.
1.3 Contribution of market segmentation in sales maximization
Market segmentation is a process of making group of customers having similar needs,
wants and requirements. Every enterprise carry out this process in order to offer featured
products to its customers to satisfy their needs and to get their loyalty. One of the main
advantage of doing this is that it help enterprise in generate more revenues than its competitors.
For effective segmentation of marketing measurability, accessibility and sustainability are the
main key elements. Segmentation of market can be done on the basis of demographic,
geographic, culture, behavioral and psychographic. This get affected by behavior of consumers
and through their purchasing power. This is one of the necessary process for increase the sales
and profit of firm.
Hilton Watford hotel can segment its market on the basis various factors include the
following:
3

 Demographic segmentation: Under this category a researcher do segmentation of
its customers on the basis of their income and age. Hilton hotel offer effective
services to its clients on basis of their income for example hotel offer 30 %
discount to government workers at weekend. Further firm offer world class
service to its business class clients in order to fulfill their requirements and needs.
Other factors which should be consider by the marketer during segmentation
include social motives of customers, their individual needs, behavior and
expectation. All this help marketer in increase the effectiveness of process of
market segmentation and help in increase the sales and profit of firm.
 Psychographic segmentation: When marketer do segmentation of customers on
the basis of their life style which include their attitude and belief about the
company’s offering is known as psychographic segmentation (Rosenau and
Wilson, 2014). Features, facilities, and prices of rooms are set on this basis.
 Geographic segmentation: Under this, market divide the customers on the basis of
their region, nation and country in which they live. Further, factors like business,
occupation and income of clients should be consider by marketer during the
process of market segmentation (Lorentz, H. and Ghauri, 2010). One of the main
benefit of this type of segmentation is that it help firm to fulfill the requirements
of customers come from different country or region and it directly increase both
sales and profit of firm.
 Behavioral segmentation: In this, customers are segmented on the basis of their
behavior related with the product and service which include parties, wedding and
other functions organize at hotel. This is done to attract more and more customers
towards company’s offering to increase the sale of organization.
Hilton hotel focus more on loyal class customer but firm offer discount to government
employees at weekends. Along with this, company various other facilities such as gym,
conference room, guest room to its business class with the facility of internet and video
conferencing. Segmentation help manager in better understanding the needs of people from
different class and help him in make appealing products to them so they can be attracted towards
it and firm can earn large number of profits.
4

TASK 2
2.1 Factors affecting buyer behavior
Buying behavior of customer is very complex as this get affected large number of factors
exist in the environment in which he live or by various other elements. Study of these factor is
very essential by a marketer so that he can influence the customers to buy firm’s product. Main
factors that largely affect the behavior of consumer include the following:
Cultural factors: Culture is one of the essential part of every society and it is very essential to
understand behavior and wants of an individual. As this help in convey values, ideas, thoughts
which help in understand an individual (Turkova, 2011). Factors such as nationalities, racial
groups, religions, and geographic all come under the category of subculture. Culture of Hilton
hotel is very good and well behave with every kind of customer. This attract large number of
customer every year.
Social factors: Various elements such as family, reference groups, status and role all affect the
behavior of an individual. Hilton hotel offer different kind of services to its like travel guide,
dining out habits, discounts at weekends and many more (Wu and Wu, 2011). Firm target
people of loyal class through organize weddings, meetings and other functions. Further
advertisement in publications and effective use of various social media platforms all are done by
firm to attract customers towards the brand.
Personal factors: There are various elements that affect or influence the behavior of an individual
which include income level, economic condition, personality, age, self concept and various life
related activities such as opinions, demographic, discount offer and many more.
Psychological factors: This include the elements which affect the buying behavior of individual
such as perception, attitudes and beliefs of an individual (Mull and et. al., 2015). For this
marketers of Hilton hotel can launch or conduct special campaigns to change the attitudes and
beliefs of customers.
Presently, firm use the concept of image merchandising which focus on the main
objective of firm and its core strengths. Hotel increase the image of its brand with the help of
campaigning and branding. With the help of websites, internet, discounting policies and
marketing campaigning firm increase the awareness among its customers (Utami and et. al.,
2014). This include the guest visual plan and floor plan of room imaging to matches with the
needs of customers. By studying various elements which affect the purchasing process of
5

consumer Hilton can attract and serve more customers than its rivals and can earn more profits
from them.
2.2 Advertising media for sales development
Based in UK, Hilton Watford hotel advertise its products with the help of various direct
and indirect methods of advertising tools. Loyal class people are the main target of hotel for
which firm organize celebrity events to promote their brands among its target market. Further,
hotel use many different forms for its marketing such as posters, magazines, telemarketing and
bulletin boards. Hotel attract government servants with the help of its discounting policy.
To attract customers of business class hotel offer them telemarketing, WiFi connection ,
internet connectivity and facility of video conferencing. Hotel maintain the database of its
customers and one of the main advantage of maintain database is that it help firm to penetrate
more number of customers which increase the market share of company. Hilton hotel use direct
mail to inform its customers about its discounting policies and new products and service. Market
campaign also done by firm which help in increase the sales on a quick level and enhance the
number of profits of firm (Piller and Lindgens, 2011). Further managers of hotel formulate
various strategies to increase awareness among customers about its brand.
Firm establish itself with help of effective advertising that help in increase awareness
among people and also help firm to compete better with its competitors. One of the main features
of Hilton hotel is that it optimally utilize all its resources with the help of advertisement in its
sales activities (Kulinich and Mnykh, 2016). All this increase the sale of firm’s products and
services throughout the year which increase profit margin. Advertising is one of the effective
tool in case of hotel as this help them to cover a large geographical spread audience and help in
expansion of business activities at an international level.
Overall media play and effective role in increase the sales of products and services of a
firm. It is very necessary that all tools of media should be effectively used by the Hilton hotel so
firm can increase the number of its profits.
2.3 Role of external merchandising
With the help of this Hilton hotel can design its products effectively and increase the
number of its profits. Merchandising is one of the technique that is use to influence clients to
spend more on effective products and services. External merchandising is basically divided into
three main categories which can be understood by following points:
6

 Mass merchandising: Under this, enterprise formulate the strategy by concentrate on
every kind of visitor. Hotel offer similar products to people of general class.
 Segment merchandising: As the name implies, under this separate catalogues are
prepared by hotel to fulfill the special requirement and needs of clients and offer facility
and products on basis of their interest. In this, various factors such as personal,
demographics, behavioral and cultural are consider by marketer to segment the market.
 Personalized merchandising: One of the main feature of every successful enterprise that
they increase the number of their profits by first understand the user’s profile. Various
elements such as reviews, ratings, interactions and navigate site are consider under this to
enhance the sale of company.
Based in United Kingdom, Hilton hotel use segment and personalized merchandising
techniques to satisfy the needs of its customers. Hotel offer effective and quality services to its
clients by increase communication and interaction with them (Turkova, 2011). They segment
the market by focus on the purchase frequency and by understand the consumer buyer behavior.
For increase the sale of its products hotel focus on presenting customers and expand its market
with effectively use of advertisement media. In this way, Hilton hotel increase the sale and profit
margin.
TASK 3
3.1 Layout and design affect customer spend
Hilton Watford hotel offer best and world class services to its customers and business
leaders. Effective layout and design of hotel stimulated customers to directly spend on it.
Beautiful interior and exterior of hotel attract large number of customers and make them ready to
pay more if services are above their satisfaction level. One of the main feature of Hilton hotel is
location of it is in center of Watford town and surrounded by hill stations which increase its
beauty (Wu and Wu, 2011). All this make the hotel a best place for vacations and organize any
king of meeting or private function such as conduct conference, weddings and many more.
Interior decoration of Hilton hotel is amazing further, library and reception of hotel are enough
attractive to influence large number of people from every class including royal class, business
class and government class employee. Various other facilities of hotel such as WiFi connectivity,
internet, video conferencing, facility of restaurant and bar that offer variety of food and different
7

kind of drinks and bear to people of different class, entertainment facility and facility of gaming
zone help in attract large number of people to visit the hotel. All this directly increase the profits
of Hilton Watford hotel and at the same time give opportunity to firm to capture a larger market
share.
One of the main feature of Hilton Watford hotel that it timely introduce new products and
services to attract large number of people from different class. Hotel adopt dynamic nature which
influence them on continuous basis to improve in their operations and compete in an effective
way with their rivals. Hotel offer holidays packages, discount offers, spa, and various other
facilities to government employees at weekend at best and affordable prices to increase their
branding and targeting on more customers (Balasescu, 2012). People of business and luxury
class are attracted toward the design and layout facility offered by hotel. It provide world class
facilities to them which influence them to spend more. Further, clients get attracted through
dynamic discount and business economy.
3.2 Evaluation of internal and external merchandising materials
Basically internal merchandising is used by hotels to increase revenue and to grasp the
opportunity exist in market. It is very essential for every hotel to collect all relevant data about
target market and customers before create internal merchandising of hotel (Fiore, 2010). This is
done with the help of lobby posters, electronic marquees and guest service directories.
Plan of cohesive merchandising include the areas of all guest contact and it comes in the
form of brand name, logo or positioning that remain constant. In Hilton hotel all materials of
merchandising are placed in an excellent condition. Menus, table tent cards and guest directories
are laminated or placed inside acrylic. All this is tie up with marketing plan of and offer different
type of plans to hotel to attract to influence people of different class and promote special events
such as Friday’s dinner and discount to government workers at weekends. Internal
merchandising of hotel execute with consistency (position statement, logo and brand name),
condition ( menus, tent cards and guest directories), cost effective ( services which offer to
customers and monitoring task), coordination ( tie up with the market plan).
Layout and lucrative design of hotel increase the sale of its products. Skilled workforce
of enterprise, interior decoration of firm, effective infrastructure and quality of its services
attract large number of customers every year. Hilton Watford hotel offer various other services
such as gym, high speed internet, restaurant and bar facility, parking facility, effective discount
8

policy and attractive facility of event organize create a centre of attraction for large number of
customers (Kulinich and Mnykh, 2016). Further, hotel use various built in promotional codes
such as room coupons and electronic marquee to increase the effectiveness.
3.3 Promotional activities for different scenarios
Hilton Watford used different kind of promotional activities for every kind of situation to
promote its brand and to increase the share of its market. Hotel provide services to people of
different class include business, loyal and middle class people. This can be better understood b y
following points:
 Middle class people: To attract people of middle class hotel use hygienic food and serve
them to its customers in an effective manner. Specially government workers are attracted
at weekend by offering 30 % discount. Many other services such as gym, spa, holiday
offers, memberships, effective room service and beauty of room attract more number if
customers to visit the hotel. Further bar and restaurant facility of hotel help it to target
common individuals and help in expand the business.
 Business class people: People of business class are attracted by Hilton hotel through
conferences, auditoriums, meeting rooms and with other facility such as internet, WiFi
and audio, video conferencing. Further to attract more people from business class hotel
use and send them letter, pamphlets, brochures and emails (Chimhundu, 2016). Further,
hotel offer business packages to its customers which contain various services such as free
call services and breakfast.
 Loyal class people: People who come under this category are attracted by hotel with
services such as parking facility, fitness center, library, accommodation room, hill station
near hotel, restaurant and bar, and organize of special events in which celebrity are
invited. Under this personal contract and telemarketing ate use to target customer.
Introduction of contest, use of coupons and competition help hotel to penetrate more
number of customers especially of loyal class. Further, Hilton hotel offer different
services such as to enjoy the weekend and cultural break and discount offer by
participating in Hampton.
Various promotional activities for people of different class help Hilton hotel to attract
number of people from different class and satisfy their special requirements.
9

TASK 4
4.1 Personal selling techniques
Personal selling is one of the effective tool used by enterprises to increase the sale of its
products. Under this a sales representative of firm interact customers on face to face basis and
influence them to buy the products of firm by show its features to them. Effective
communication and good interpersonal skills are required under this technique. Further it is very
essential that representative of firm should have detailed information about products and services
of company. Hilton hotel maintain good relationship with its customers of different class and
timely aware them about new plans and discount policy (Lapoule and Colla, 2016). To increase
the effectiveness of this technique it is very essential right employees should be choose at right
place and effective training should be offer to them to increase their selling skills. This improve
benefits for both employees and customers.
Various method of personal selling which used by hotel Hilton Watford can be understood by
following points:
 Sales call: Firm set its day to day target and do various efforts to achieve them in a
planned way.
 Sales trip: This is introduce by enterprise to increase awareness about its products and to
expand its business activities in various areas.
Telephone selling: Under this, company contact with customers by receive incoming calls
from them and by placing outgoing calls to them regarding the facilities of hotel. Tele caller of
firm are very well trained to analyze the needs of customer on instant basis and give them answer
on the spot to fulfill their requirements (Lapoule and Colla, 2016). Further, hotel is involved in
various kind of activities and events with community and cultural based and this attract large
number of customers towards the services of hotel and provide number of benefits to enterprise.
 Firm offer various services of entertainment such as cycling and casino, gaming zone and
tracking services to attract them to visit the hotel.
4.2 Influence of operational design on sales revenue
It comes under the responsibility of staff members to maximize their performance. One of
the main advantage of perform operation in an effective manner is that it help in increase
10

efficiency of business operations and at the same time reduce cost. Main changes which should
be done by the managers of Hilton Watford hotel can be understood by following points:
To save energy and reduce cost HVAC system should be used by enterprises. Hilton hotel use
LED bulbs that help in save thousands of dollars on electric bills.
Tablets, smart phone and various social networking sites should be used by firm keep in
personal touch with customers. All available space of hotel should be well used by for organize
meetings and other important functions so cost can be reduced and profits can be maximized.
All marketing activities should be done effectively so they can directly support the sales activity
of firm. Base on product offer price are set so basically hotel is in a position to better understand
the market and utilize its opportunities.
4.3 Principles included in sales training program
Sales training program is one of the essential process of every enterprise because under
this employees of enterprise are given knowledge that how they can increase the sale of
company’s products. Following principles which must be included in the sales trainings program
can be understood by following points:
Candidate must have complete knowledge about the products and services offered by hotel. It is
very necessary that they must be familiar with all kind of products and must have proper
knowledge related with the strengths and weakness of every product they offer to their
customers.
That training programs should be introduce in hotel in which employees should be teach how to
treat or behave with middle and royal class people.
Leadership qualities must be developed by motivate workers.
Lead effective sales conversations with customers.
All these are the main principles of sales training program which must be include in the
sales training program of Hilton hotel. In this manager of hotel can increase the knowledge of its
employees which they can use it to deal with different kind of customers. (Tan and Newman,
2013) In this way, workers can build and maintain good relations with customers and can
increase their loyalty towards brand.
11

CONCLUSION
From the above information it can be concluded that there are number of factors which
contribute in increase the sales of an organization. Hilton hotel can offer effective services to its
customers by identify the key components of a product. All elements of product mix play a big
role in increase sales and profits of company so all these should be well use by firm. Further with
the help of market segmentation hotel can maximize its sales. There are number of factors which
affect the behavior of a buyer by identify those factors and by study how they affect the
purchasing pattern of clients hotel can increase the sale of its products. Number of customers
from different class visit Hilton hotel every year so marketer should use different promotional
tools and techniques to stimulate customers of different class. Further to increase the share of its
market various and effective techniques of personal selling must be used by firm. By include
various principles in sales training program Hilton hotel can increase the knowledge of its
workers which will benefit enterprise by increase its sales. Layout and design of hotel is very
effective and attractive which make the customers ready to spend more.
12

REFERENCES
Books and journals
Balasescu, S., 2012. The impact of innovation on the retail commerce. Bulletin of the
Transilvania University of Brasov. Economic Sciences.
Chimhundu, R., 2016. Marketing store brands and manufacturer brands: Role of referent and
expert power in merchandising decisions. Journal of Brand Management. 23(5). pp.24-
40.
Fiore, A.M., 2010. Understanding aesthetics for the merchandising and design professional.
A&C Black.
Kulinich, T. and Mnykh, Y., 2016. Directions and possibilities of small enterprises’ profitability
growth in the field of domestic store sales of building materials.
Lapoule, P. and Colla, E., 2016. The multi-channel impact on the sales forces
management. International Journal of Retail & Distribution Management. 44(3).
pp.248-265.
Lorentz, H. and Ghauri, P.N., 2010. Demand supply network opportunity development processes
in emerging markets: Positioning for strategy realization in Russia. Industrial Marketing
Management. 39(2). pp.240-251.
Mjøs, O.J., 2010. The symbiosis of children’s television and merchandising: comparative
perspectives on the Norwegian children’s television channel NRK Super and the global
Disney Channel. Media, Culture & Society. 32(6). pp.1031-1042.
Mull and et. al., 2015. An exploratory study of using 3D avatars as online salespeople: The effect
of avatar type on credibility, homophily, attractiveness and intention to interact. Journal
of Fashion Marketing and Management. 19(2). pp.154-168.
Piller, F.T. and Lindgens, E., 2011. Customer co-creation: moving beyond market research to
reduce the risk in new product development. New Product Development in Textiles:
Innovation and Production. p.175.
Rosenau, J.A. and Wilson, D.L., 2014. Apparel merchandising: The line starts here. A&C Black.
Sohl, T., 2011, January. Within-Industry Diversification and Firm Performance: Synergy
Creation and Capability Development. In Academy of Management Proceedings (Vol.
2011, No. 1, pp. 1-6). Academy of Management.
Tan, K. and Newman, E., 2013. The evaluation of sales force training in retail organizations: a
test of Kirkpatrick's four-level model. International Journal of Management. 30(2).
p.692.
Turkova, O.V., 2011. Methodological approaches to estimation of efficiency of a distribution
network. Economic Issues of Agricultural Development of Belarus: interdepartmental
subject collection.
Utami and et. al., 2014. The Relevance, Efficiency and Effectiveness of Business Ethics
Empowerment through Supply Chain Development and Merchandising Management in
Improving Family Welfare in Traditional Retails in Gresik District,
Indonesia. Academic Research International. 5(2). p.254.
Wu, C.S. and Wu, Q.Y., 2011. Redesigning the Apparel Product Development Process Based on
the No-Interval Coherently Phased Product Development Model. In Advanced Materials
Research (Vol. 331, pp. 603-606). Trans Tech Publications.
13

Online
Sales and merchandising. 2017. [Online]. Available through<
http://smallbusiness.chron.com/difference-between-sales-merchandising-22887.html>./
[Accessed on 21st October 2017].
14