Tourism and Hospitality Marketing

Prof. Jefferson S. Marcelo, MBA

 LEARNING OBJECTIVES
• Describe the principles of personal selling
• Describe public relations and the major PR activities;
• Apply public relations concept in promoting tourism
and hospitality products and services;
• Define sales promotions and the factors the led to its
growth;
• Apply the different sales promotional tools to
appropriate scenarios.
• Explain the PR and Sales Promotions process
PERSONAL SELLING
 WHAT IS PERSONAL SELLING?
• Defined as the person-to-person
communication between a salesperson and a
prospective customer in which the needs are
met in exchange for money or resources.

• Sales Representatives or Salespersons are

the company’s link to customer. It represents
the company to the clients.
 WHAT IS PERSONAL SELLING?
• Kotler describe Sales Professionals are
regular employees of the establishment,
with salaries, benefits, technical support,
entertainment and representation
allowances, cost of travel etc. serves to be
the most expensive contact and
communication tool by the company.
PRIMARY TASK OF SALES PROFESSIONALS

1. PROSPECTING. The sales personnel is tasked to

look into potential customers or “prospect.”
DATABASE and NETWORKING SKILLS are needed
to ensure that there is a steady flow of new
customers.

2. TARGETING. Sales Professionals need to determine

how to prioritize limited time and resources to tap
customers from their list of prospects.
PRIMARY TASK OF SALES PROFESSIONALS

3. COMMUNICATING. Constant stream of

communication should flow from customer to client.
Sales professional need to find ways and means to
keep in touch with client.

4. SELLING. Sales personnel are trained to do product

presentations, negotiations, overcoming objections,
and closing the sale. This is the core of what the sales
persons does for the company.
PRIMARY TASK OF SALES PROFESSIONALS
5. SERVICING. Sales Persons should become a customer consultants
– helping clients solve problems and rendering technical/expert
assistance.

6. INFORMATION GATHERING. Sales representatives assist the

company in gathering intelligence information such as what
competition is doing or what the company’s needs are.

7. ALLOCATING. When there is a product shortage or over-bookings,

sales people assist in deciding which clients to prioritize based on
past and future business engagements.
 Selecting SALES STRATEGIES

1. Prevent of erosion of key accounts

2. Grow key accounts
3. Grow selected marginal accounts
4. Eliminate selected marginal accounts
5. Retain marginal accounts with lower cost
sales support
6. Obtain new business from selected prospects
(business development)
 STEPS IN
SALES PROCESS
 Steps of the SALES PROCESS

1. Prospecting the Qualifying Prospects

– Sales process begins with identifying prospective
customers using a variety of sources.
– Prospects start out as leads:
• Current clients
• Referrals from existing clients
• Clients of your competitors
• New users, database and inquiries
• Cold calls and Sales Blitzers
2. Pre-approach
– This is the stage wherein the salespersons seeks
to understand the business opportunities that the
prospects can provide the company.
– This is the stage where the salespersons make
himself familiar with the business and what are the
company’s needs are in order to ensure that there
is a fit between what company needs and what the
salesperson is selling.
– Product Knowledge practices
3. Approach
– The approach is when a salesperson starts
to communicate with the prospect.
– Professionalism and strong social skills are
very important in this phase.
– The sales person will observe etiquette,
protocols and cultural sensitivity to assess
the behavior of the client as well.
4. Presentation and Demonstration
– Knowing customer needs and how to address it,
product presentation should take place next.
– Product presentation should customize in the
prospect and should include features, benefits,
and advantages, of availing the products and
services.
– Listening to what client does and does not say is
an important skill salespersons need to have as
they make the presentation.
5. Negotiation and Overcoming Objections
– Negotiation and overcoming objection is a very
challenging phase in the sales process. This
involves arriving at a mutually beneficial
exchange of value between the seller and the
buyer.
– NEGOTIATION is the process of resolving
differences between the buyer wants and what
the seller wants to give exchange for what the
buyer can pay for it.
The salesperson should be able to assess the
likelihood of closing the sales base on:
1. How the buyer interacts with the
salesperson through his verbal and non-
verbal cues
2. How competition figures in the negotiation
3. Limitation set forth by the management as
to maximum and minimum levels of price
and resources.
5. Negotiation and Overcoming Objections
– OBJECTIONS come in different forms
such as the price or rate of the product,
the actual product or service, or simply a
lack of interest in the product.
– Ways how to handle objection: (1)
offering alternative benefits, (2) ASK
other needs of the customers.
6. Closing the Sale
– Officially closing the sale is done through a signed
contract.
– Closing the sale is asking the client directly or discretely
any of the following questions:
• May I draft the contract and send it to you for review?
• Shall I call your office tomorrow and get details of the
booking ?
• Can I take your reservation now so you can avail of an
extra ___% from the purchase price?
7. Follow Up/Maintenance
– Once the sales has been made and the service
has been delivered, the sales persons keeps the
relationship by doing follow up activities such as
a phone call or personal visit to ensure that
products and service quality was provided.
• Customer satisfaction
• Customer dissatisfaction
• Customer complaint
MARKETING NUGGETS: Things I Learned
as a Salesperson
1. Recruitment and Selection of Sales Force
2. Activity should lead to productivity
3. Time management skills are essential to a saleperson
4. Motivating the Sales Team
1.Cold calling can be frustrating
2.Do not take rejection personally
3.Engage in joint calls with peers
4.Invite you DOS to join you for some important client calls especially for key accounts
5.Teamwork is crucial for the success of any salesperson.
PUBLIC RELATION
 What is PUBLIC RELATION?
• PUBLIC RELATION (PR) is the process of
creating a positive image and customer
preference through third party endorsement.

• This can be done using various activities all

aimed to generate positive image through
what others say about one’s establishment.
 What is PUBLIC RELATION?
• PR banks the idea that if a credible person – not related to
your business – says something good about your product
or service, then consumer may be more certain that it is
really good. COMMUNICATING THE PUBLIC both includes
INTERNAL AND EXTERNAL

• INTERNAL AUDIENCE may refer to employees and

investors.
• EXTERNAL AUDIENCE includes guest, potential guest,
media, local community, and the government.
PUBLIC RELATION
ACTIVITIES
 Major PUBLIC RELATION Activities
1. Press/Media Relations
– Mass Media channels help generate publicity and awareness for
huge audiences.
– Since it is a third party endorsement, business establishments
do not have control of what comes out in the form of press
release and media coverage.
2. Product Publicity
– This involves efforts to introduce or publicize new products,
special events, new developments within the business through
product endorsements or mention in various channels.
 Major PUBLIC RELATION Activities
3. Corporate Communications
– This covers internal and external communication \s that
promote understanding of the organization using tools such
as newsletters, bulletins, and email blast.
– Newsletters could be internal or external. INTERNAL such as
info for new products, employee awards, and new
compensation benefits. EXTERNAL such as new promo deals,
product features, and upcoming events.
4. Lobbying
– PH includes building good relations with the public sector
namely local government unit where your business operates
and legislators who may pass bills that will have an impact –
whether positive or negative – in ones business.
 Major PUBLIC RELATION Activities
5. Counselling
– Employee involve in the PR play the role of
adviser which regards to public issues that
may have an effect on the company’s
position and image.
– In times of crisis, the PR manager serves
as the official spokesperson of the
company.
 Contribution of PUBLIC RELATIONS
to MARKETING
• Assist in the launch of new product
• Assist in repositioning a matured product
• Build up interest in a product category
• Influence specific target groups
• Defend products that have encountered
problems
PUBLIC RELATION
PROCESS
 PUBLIC RELATION PROCESS
In planning a PR strategies, the following steps are
recommended:
1.Understanding the firm’s mission, culture, and target market.
• A thorough understanding of the firm’s mission and culture will
help one come up with an effective PR plan. This can be
achieved through research.
2.Setting of Objectives.
• Marketing objectives need to be established prior to the
creation of a PR plan. These objectives can either be to build
awareness for the new product, build credibility for the brand,
stimulate sales force, and channel intermediaries or lower
promotion cost.
 PUBLIC RELATION PROCESS
3. Defining the target market
• Identify a specific target market and get to know the
behavior of this specific segment of the market.
• Understand how this market communicates and what
major factors can influence its purchase behavior.
4. Designing the PR message
• Create a strategy by which your PR campaign will be
designed and what communication channels would be
effective to achieve your objectives and attract your
target market.
 PUBLIC RELATION PROCESS
5. Implementing the PR Plan.
• This means putting the plan into action.
• Constant monitoring and review will assist you in
properly implementing the PR Plan.
6. Evaluating PR results
• Evaluating the results of the PR campaign can come in
the form of:
– Exposures of the brand
– Awareness, comprehension/attitude changes within the target market;
or
– Sales and profit contribution
 PUBLIC RELATION
TOOLS & AUDIENCES
 PUBLIC RELATIONS TOOLS & AUDIENCES
– Public relations can be used to address various audiences such
as employee, guests, community groups, other stakeholders, and
special audiences.
PUBLIC RELATIONS TOOLS & AUDIENCES
 PUBLIC RELATION PROCESS
IMPORTANT POINTS TO REMEMBER!
1.Effective Public Relations begin with top management
• The PR head manages how the product or service will
be regarded by the public but it is the top
management who leads in creating good public
relations.
2.No amount of PR can overcome a flawed product
• Public relation can create a positive image of any
products but no amount of PR can overcome a bad
product.
PUBLIC RELATION
OPPORTUNITIES
 PUBLIC RELATION OPPORTUNITIES
PR opportunities can be created based on a strategic plan of action.
Based on the company’s resources and objectives, the PR
messages and activities may be built around any of the following:
1.The Owner/Operator.
• If the owner or operator has potential “star” appeal, or has
already built a positive reputation building PR images around
him may be the best option.
• Celebrities who come up with their own businesses become
instant celebrity endorser.
• Owners tend to be more visible in public are the best
spokespersons for their own product.
 PUBLIC RELATION OPPORTUNITIES
2. The Location.
• One’s location can also be used to position a product
positively. A well received business location can help bring
awareness to one’s product or service.
• Unique location can become a pull factor to ensure that
potential customer will take notice of your brand.
3. The Product/Service.
• The product or service itself can be an opportunity to create
good public relations. It can be used as trademark of a
business.
• A good product creates positive word of mouth and that in
itself is the beginning of good public relations.
 CRISIS MANAGEMENT &
CRISIS COMMUNICATION
ULTIMATE PR Test: How to Manage Crisis
• When a crisis happens, this is when one’s relationship with the
press will be put on a test. How the press covers the crisis will be
subject to how well you have cultivated your relationship with the
press.

• Bad image in the social media or public can affects the brand
image. Good communication with the press can definitely help
reduce the ill effect of a crisis by communicating how the crisis
occurred and how the company is managing the expectation.
SALES PROMOTION
What is SALES PROMOTION?
– It refers to DIRECT inducement that offers extra
value or incentive for the product to the sales
force, distributors, or the ultimate consumer,
with the primary objective of creating an
IMMEDIATE SALE.
– It consist of short-term incentives to encourage
the purchase or sale of a product or service.
– It involves a variety of techniques that serves to
accelerate purchase of products and services.
 Factors in the
GROWTH of SALES PROMOTION
1. Growing power of RETAILERS
2. Declining BRAND LOYALTY
3. Increased promotional sensitivity
4. Brand proliferation
5. Fragmentation of the consumer market
6. Short term focus of the consumer market
7. Increased accountability
8. Competition
9. Clutter
 SALES PROMOTION
– SALES PROMOTION can be targeted to different
levels of the sales process: (1) consumer (2)
trade intermediaries (3) sales force;
 CONSUMER-ORIENTED Promotional Tools include samples,
coupons, packages, rebates. Price-off, premiums, contests,
refunds, bonus packs, and demonstration.
 TRADE Promotion include allowance, free goods, cooperative
advertising, contest and dealer incentive, POS displays, training
programs.
 SALES Promotion directed to sales force include bonuses,
contest, and incentives.
 SALES PROMOTION
– KOTLER spell out some factors to consider
in setting up a sales promotional plan:
• Objective of the Campaign
• Type of market to be tapped
• Competition
• Cost and effectiveness of each tool
SALES PROMOTION
TOOLS
 Sales Promotional Tools
1. SAMPLES/SAMPLING
– Offers a trial amount of a
product. Some samples are
free, others charge a small
amount to offset its cost while
including the product trial.
– Most of the industries tried
this promotional tool is the
retail/FMCG.
Sales Promotional Tools
2. COUPONS
– Are certificates that offer
buyers savings when they
purchase specific products.
– Usually used to stimulate
sales of a matured product
as well as to promote trial of
a new product.
– Usually this tool used
carefully to avoid price war.
 Sales Promotional Tools
3. PACKAGES
– Involves putting together a
set of complementing
products to come up with
one bundle at a special
price.
– Price cheaper and can
promote two brand in one
purchase.
Sales Promotional Tools
4. PREMIUMS
– Are goods offered either
for free or at low cost to
provide incentive for
consumers to buy a
product.
– Example: FREE MUG that
goes with the purchase of
Coffee items
 Sales Promotional Tools
5. PATRONAGE REWARD
– Are bonuses in the form of cash or
items of value that can be
redeemed for regular purchases
made.
– These kinds of programs create
more frequency of purchase,
positive WOM, and possibly larger
purchases.
– EX SB Planner through SB 18
stickers
Sales Promotional Tools
6. Point of Purchase
Promotion
– Include displays and
promotions that take place
at the point of sale.
– Some hotels display
brochures of their other
branches at the lobby or
front desk.
– Some souvenirs items are
positioned near the cashier
for easy, random, and
impulse purchases.
 Sales Promotional Tools
6. CONTEST AND GAMES
– Give consumer a chance to win
something such as a trip or cash
upon purchase of the products and
services.
– Raffle entries are given to
consumers based on total amount
of consumption which are then
raffled for a prize.
 PREPARING
PROMOTION PLAN
 Preparing the
Below are the recommended steps that marketer need to
take in coming up with a concrete, efficient, and well-planned
promotional campaign.

1.Decide on what promotional tool to use.

2.Decide on what media channel to use.
3.Identify when the promotional tool will be
released and in which channel.
4.Evaluate the media results.
 Comparison of Promotional Tools’ Characteristics,
Uses, Strengths, and Weaknesses
STEP 1: Decide on what Promotional Toll to use
TOOL Characteristics Uses Strengths Weaknesses
- Public - Promote to a Efficient way to Requires a large
- Pervasive large reach numerous budget
Advertising - Dramatic heterogeneous geographically
- Impersonal market dispersed market Requires creativity
- Helps build up for ads to stand out
long-term image Low cost per Lacks feedback
exposure
- Targeting - Niche markets - Superior targeting Higher cost per
efficiency - High end markets - Effects are person than any
Direct - Message - Availability of measurable other tool.
Marketing customization database
- Interactive quality - Builds
- Response relationship
measurement
 TOOL Characteristics Uses Strengths Weaknesses
Communication Induce immediate Facilitates quicker Effects are short-
provides sales response term
Sales incentives
Promotion Boosts declining Does not build
Invitation to sales lasting place
engage preference
- Third party - Build good - Highly credible Uncontrollable
endorsement relation - Creates
Public - Indirect - Build good memorable
Relations promotion public image impact
- Dramatic - Manages - Greater impact
- Not directly unfavourable at less cost
paid for but is stories,
not cost-free rumours
Personal - Interactive - Builds up - Facilitates High cost of
relationship preference and relationship maintaining sales
Selling between buyer conviction building force
and seller towards the
product
 Comparison of Promotional Tools’ Characteristics,
Uses, Strengths, and Weaknesses
STEP 2: Decide on which
media channel to use
• Television • Brochures
• Radio • Direct mail
• Internet • Billboards
• Telephone • Transit ads
• Newspaper • events
• Magazine
• Newsletter
 Comparison of Promotional Tools’ Characteristics,
Uses, Strengths, and Weaknesses
STEP 3: Timing the Media Release

• Remember the (1) audience turnover, (2) behaviour

frequency, (3) forgetting rate
• AUDIENCE TURNOVER – is the rate at which target market
changes between two periods.
• BEHAVIOR FREQUENCY – is the number of times during the
year that the target market makes the decision to purchase.
• FORGETTING RATE - is a rate at which a message is
forgotten or behaviour change become non-evident. The higher
the forgetting rate, the more advertising should applied.
 Comparison of Promotional Tools’ Characteristics,
Uses, Strengths, and Weaknesses
STEP 4: EVALUATE THE MEDIA RESULTS

• Measuring the results of media messages is difficult task

especially since there are many variables that have to be taken
into consideration.
• Evaluation research and tracking of media messages are
important for media planning.
TRADE SALES PROMOTION
– This refers to incentives that manufacturers offer
retailers to encourage them to stock their products and
endure they get the proper attention. This is applicable
also to hospitality sectors in the supply chain
practices.
– Effective trade sakes promotion create loyalty among
retailers and increase their enthusiasm for marketing
the product.
– Examples are: PUSH MONEY, DEAL LOADER, TRADE
ALLOWANCES
1. PUSH MONEY
– Is a bonus given to salespeople for selling
a specific brand.
– Retailers must carefully manage push
money programs to ensure salespeople do
not ignore customer needs in order to earn
bonus.
2. DEAL LOADER
– Is a premium given by manufacturer to a retailer
for ordering a certain quantity of a product.
– There are two types of deal loader – buying
loader and display loader.
– Buying Loader is a gift given for making a
specified order size.
– Display Loader gives the contents of a display to
the retailer after the promotional campaign.
3. TRADE ALLOWANCES
– Or trade deal is a reward offered by manufacturers
to retailers in exchange for supporting the
manufacturers brand by performing various
marketing activities.
– Sometimes, manufacturers offer free merchandise
instead of buying allowance (price deduction).
– To ensure that the products are being distributed
well, manufacturers provide product and sales
training.
Tourism and Hospitality Marketing
Prof. Jefferson S. Marcelo, MBA