Sales Management in Service Sector

This study explores the key principles and techniques of sales management in the service sector, specifically focusing on Marriott hotel. It discusses the importance of sales planning, sales structure, and sales distribution channels. It also highlights the significance of having sales-oriented staff within the hospitality industry and explores ways to build and manage guest relationships for successful selling. The study provides valuable insights for sales management in the service sector.

Sales Management in
Service Sector
1

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
ACTIVITY 1...................................................................................................................................3
Key principles of sales management for identifying importance of sales planning and methods
of selling......................................................................................................................................3
ACTIVITY 2...................................................................................................................................4
Evaluation of benefits of sales structure and the way they are organized...................................4
Importance of having sales oriented staff within the hospitality industry...................................5
Different sales distribution channels for hospitality....................................................................6
ACTIVITY 3...................................................................................................................................7
Key principles and techniques for successful selling and ways by which they contribute to
build and manage guest relationship............................................................................................7
ACTIVITY 4...................................................................................................................................8
Importance of developing sales strategies which yield highest profitability and corporative
account management...................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
2

INTRODUCTION
Sales management is a process of developing sales force, implementing as well as
coordinating sales techniques in order to accomplish set sales target (Malek, Sarin and Jaworski,
2018). This present study is based on Marriott hotel which is an American multinational
diversified hospitality company. It manages as well as well as franchises portfolio of hotels and
related activities. This present study is going to show importance of managing sale with the help
of an effective sales structure. It helps companies in understanding importance of sales functions.
Further, it will also show some sales techniques which can allow this hotel in increasing sales.
ACTIVITY 1
Key principles of sales management for identifying importance of sales planning and methods of
selling
Sales management is a procedure which involves several activities of setting parameters
in order to make sure maximum sales of a product or services of an organization of service
sector. For an effective sales management, it is important to perform several activities such as
developing sales force and using several effective sales techniques for coordinating sales
operation. There are mainly 3 elements of principles of an effective sales management which can
also help manager of Marriott hotel in understanding importance of sales planning such as:
Sales planning: It is one of the main principles of sales management on which all further
activities or functions depend. In this step of principles, sales manager needs to set overall sales
target which they want to achieve, forecasting of demand and setting appropriate strategy by
which they will accomplish their set target (Johnston and Marshall, 2016).
Recruitment of sales staff: It is stated that it is one of the integral part or principle of
sale management in which, sales manager identify requirement of skilled sales staff and
accordingly recruit them by using the best recruitment strategy. They also need to understand the
open position in their company and placing right and skilled workforce they can perform further
activities of sales management.
Sales reporting: One of the main role and responsibility of sales manager is to
understand and analyse key indicator performance of sales team. One of the main aim of
understanding or analysing KPIs is to identify deviation caused and can make required
adjustment for improving productivity.
3

Sales force
Establishing sales force is the main function of saes management in order to make their
sales team able by which they can grow their business. There are mainly 3 key areas of sales
such as: Sales operation, sales strategy and sales analysis.
Different sales methods
One off selling: In this type of selling, sales manager does not focus on improving
relationship as it is the sale which can be seen in retail sector.
Personal selling: It is also known as face to face selling in which sales team or sales
person direct interact with customers. In this method, sales person try to understand needs of
different types and age group of people by using their interpersonal skills.
Customer centric selling: It is one of the best and effective sales type in which
organizations focus on satisfying needs of customers and selling products which can help them
out in improving relation with them. Customers are being placed at centre in this type of selling
(Nemetz, Riegler and Spechtler, 2017).
Relationship selling: It is mainly known as business to business selling in which one
organization sell its products and services to other company. For example: for making cloth, an
organization buys raw materials like cotton and others to another company.
Importance of sale management
One of the main benefits of sales management is it allows organizations or Marriott hotel
to decrease cost related to administration and distribution as well. It can also allow companies in
launching as well as developing new product in the market without hurting anyone and sales in
any manner. It also makes companies able to rise in GDP of their country.
ACTIVITY 2
Evaluation of benefits of sales structure and the way they are organized
Sales structure plays an important role as it allows sales manager in identifying ways by
which they can carry out the entire sales process. There are different types of sales structure
which include: geographical organizational, product sales force, market based, functional and
horizontal sales structure. There are several advantages of using an effective sales structure such
as:
4

 It clarifies roles and responsibilities among sales staff which allow them to improve their
productivity by reducing errors.
 With the help of an effective sales structure, sales staff can communicate or interact with
each others in an efficient manner which allows them to deliver products or sale in a
timely manner.
There are different types of sales structure but it is stated that many companies often use
horizontal structure for an effective sales management which helps them out in improving
decision-making process. For making sales management successful and working as per the sales
structure, there are 2 main functions which need to be followed such as:
Recruitment: One of the main functions for working as like sales structure, it is important to
recruit employees who can fit for the company’s specify job roles. By making an effective use of
employment agencies, Marriott can employ skilled workforce (Shipeng, 2018).
Training and development: After recruitment, it is important to provide training to employees.
It can be said that each person have some areas which they require to improve and each
organization have different strategies and ways of performing functions. For making all
employees able to know about ways of performing, Marriott provide training to their employees
and strengthen their skills and knowledge. For motivation, it also provides rewards, health
insurance and other facilities to their employees by which they cooperate company in
accomplishing their goals.
Importance of having sales oriented staff within the hospitality industry
There are several factors which can allow hospitality industry and Marriott hotel in
increasing their sales. One of the main key of the success of all functions and growth of the
company is employees. Employees are the one which help companies in accomplishing their
goals by performing several roles. But it is important for companies to motivate them because
motivated employees cooperate companies for whom they work in increasing profitability. There
are several benefits of having sales oriented as well as skilled staff within hospitality sector or
Marriott hotel such as:
Understanding products: One of the main benefits of having sales oriented and skilled
workforce understands all features of products and make customers understand the same. When
employees are sales oriented than they find the best way to increase sales and for that it is
5

important for them to have detailed knowledge of products which they are going to sell in order
to make customers aware (Bolander and et.al., 2017).
Understanding customers needs: One of the other main benefits of having sales
oriented and skilled workforce understands needs of customers. Because understanding
customers needs is the first and important key of making selling successful. When employees are
sales oriented than they mainly focus on understanding needs of all types of customers because
they know that without understanding needs of customers they cannot satisfy them and increase
sales. So, it can be said that sales oriented and skilled workforce focuses on each and every
factor and small thing.
Increasing productivity: Overall, it can be said that sales oriented employees can allow
hotels in increasing overall productivity because their aim is to sell products by hook or by
crook. Increasing productivity can allow companies in improving image as well.
Increasing opportunity: It is important for companies or Marriott hotel to make a
specific and strong position in the market and it can only be possible when it have good image
and sales (Ilkka, 2017). So, one of the main aims of having sales oriented and skilled workforce
is to take competitive advantages because sales oriented staff analyse market condition and
perform their functions accordingly.
Different sales distribution channels for hospitality
In the context of distribution, it can be said that it is one of the main and important
element of making selling successful. It is a process or way of making products available to
customers. There are several strategies of distribution which can allow hospitality industry and
Marriott to increase their sales and increasing loyalty such as:
Official Website: It is one of the important ways which hospitality industry and hotels
use the most for delivering products and services to customer. With the help of using its official
website, it allows their customers to book online tickets and having all knowledge or
informations about nearby visiting places and others. Official website does not only allow
companies in delivering products but it also allow them to promote their services as well.
Direct selling: It is also one of the best ways of distributing and making products
available to customers. By using this strategy, company can improve relationship because in this
strategy, they have direct contact or face to face conversation with customers. By using this
6

strategy they can meet their customers and if customers have any query than they can even solve
that at that time (Seelig, 2017).
Selling through intermediaries: It is just opposite of direct selling in which company
hire some intermediaries for delivering products to end user. By hiring intermediaries or
distributors who have knowledge and skills of delivering products to customers in an efficient
manner, Marriott can increase its sales and deliver products to customers.
Online: It is the most used and effective way of distributing products and services to
customers. By making an effective use of social media platforms which can allow customers to
book their hotel rooms and also book other services and paying online, hotel can increase
loyalty.
From the above discussed strategies, it can be said that Marriott can either use direct
selling or selling through official website. It can allow it to improve relationship by providing
each and every information to customers about products.
ACTIVITY 3
Key principles and techniques for successful selling and ways by which they contribute to build
and manage guest relationship
There are several techniques and principles by which Marriott can make successful selling. All
principles or techniques are being discussed below but all that can be possible when company
hires an effective distributor:
Active and effective technique: One of the best techniques of successful selling is to
reach out to effective distributors. Distributors have skills of spiting all potential local areas. It
can allow Marriott to increase sales by providing products at place where required the most
(Sharma and Sagar, 2018).
Wider range of customers: One of the main key of the success of selling is attracting
customers to the great extent. It can only be possible when, an organization hire a distributor who
has knowledge about ways to attract customers and influencing them. So, it can be said that by
attracting customers, company can make its selling successful.
Having knowledge of the market: It is important for sales manager to have knowledge
about the current market condition as what is going on the market. Distributors have knowledge
7

about ways to gather informations and providing to the company. It can allow Marriott to
connect with all those who have similar potential buyers.
Effective strategy: Strategy also works as like the key of the success, Distributors make
an effective use of big trucks for transporting goods of an organization. So, by making an
effective use of sales strategy and distribution strategy, company can make its selling successful.
Inspiration and active listening: It is important for salesperson or distributor to have
skill of active listening. With the help of this skill, they can listen needs and queries of customers
and accordingly they can provide them products. It can make customers feel valued and also
motivate them to retain with the company for the long run.
Pricing and value: It is other main step and way of making selling successful of using
the best pricing strategy by considering all classes of people. It can add value in products and
allow company in attracting customers to the great extent (TILEAGĂ and OPRIȘAN, 2018).
Relationship selling: It is one of the best ways of making selling successful. As per this
strategy and way of selling, salesperson focuses on improving relation with customers by
listening them and providing them products as per their needs.
Importance of strategies: In the context of importance of using strategies of successful
selling it can also be said that all these strategies can help company or Marriott in improving
relation with customers. For example: by using relationship selling strategy, sales person mainly
focuses on listening queries and needs of customers. After listening their needs and queries, if
company provide them qualitative products as per their needs than it makes them feel valued and
motivated. They feel that company is concern about their needs and they retain with the
company.
ACTIVITY 4
Importance of developing sales strategies which yield highest profitability and corporative
account management
It is stated that one of the main aims of Marriott is to attain huge profitability and satisfying
customers for improving image of the hotel in the eyes of them. There are several techniques by
which Marriott can not only increase sales but can also accomplish their all other objectives.
Increasing individual sales is one of the techniques by which company can increase its sales.
There are several other tools by which company can yield highest profitability such as: attracting
frequent buyers and following current trends. There are several other strategies such as:
8

Seasonal pricing: It is known as the clever strategy by which company can yield
profitability and attract wider range of customers. According to this strategy, hotel needs to
charge different prices as per the current situation and quality as well as type of products and
services. As per the season, company needs to charge prices because hotel or hospitality industry
is known as seasonal. For example: In the monsoon and winter season, people love to travel and
in this season, hotels have great chance to attract customers and increase sales as well as
profitability.
Developing new products: It is one of the other main strategies which can allow
Marriott hotel to attract customers and increasing profitability. By making products innovative
and creativity, hotel can accomplish their goals. Customers prefer to buy sustainable and
innovative products as it satisfy their needs and make them feel valued.
Customer services: Providing better customer services which can make them feel valued
and increase loyalty is other main strategy by which hotel can increase profitability and sales. As
per this strategy. Marriott can provide post sale services like solving their queries immediately
and being in contact with them (Nagle and Müller, 2017).
So, from the above discussed strategies it can be said that company can increase its sales,
profitability and increase loyalty. All are some benefits of developing and using effective
strategies.
CONCLUSION
From the above study, it has been summarized that sales management played a vital role
in hospitality sector. It allows companies in increasing sales and attracting wider range of
customer by making an effective planning and performing all functions of an effective sales
management It has also shown importance of using an effective sale structure, Lastly, this study
has discussed importance of developing sales strategies as well as techniques for successful
selling.
9

REFERENCES
Books and journals
Bolander, W. and et.al., 2017. Managing new salespeople’s ethical behaviors during repetitive
failures: when trying to help actually hurts. Journal of Business Ethics. 144(3). pp.519-
532.
Ilkka, H.R., 2017. The State of Smarketing: Sales and marketing alignment and its strategic
importance in chosen B2B companies.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation,
technology. Routledge.
Malek, S.L., Sarin, S. and Jaworski, B.J., 2018. Sales management control systems: review,
synthesis, and directions for future exploration. Journal of Personal Selling & Sales
Management. 38(1). pp.30-55.
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Nemetz, T., Riegler, A. and Spechtler, A., Intel Corp, 2017. Systems and methods for selling
content over a network. U.S. Patent 9,754,246.
Seelig, M.J., AT&T Intellectual Property I LP, 2017. Systems and methods to automatically
activate distribution channels provided by business partners. U.S. Patent 9,754,265.
Sharma, A. and Sagar, M., 2018. New product selling challenges (key insights in the ICT
sector). Journal of Indian Business Research.
Shipeng, H., 2018. THE INFLUENCES OF PRODUCT QUALITY, PRODUCT PRICE,
BRAND BENEFITS AND CUSTOMER EVALUATION TOWARD PRODUCT
SALES (A CASE STUDY OF OPPO MOBILE PHONE USERS IN JAKARTA
TAMAN ANGGREK) (Doctoral dissertation, President University).
TILEAGĂ, C. and OPRIȘAN, O., 2018. The importance of selling techniques in the tourism
industry. Revista Economica. 70(2).
10

11

12