Chapter 6 Internal Marketing and Sales

1. Chapter 6 Internal Marketing and Sales Marketing the property is everyone’s business. Every employee, from the general manager to the bellman, makes an impression on the property’s geusts.

2. What is Internal Marketing?

3. Internal marketing and Internal Sales • Internal marketing and internal sales • While interrelated, are not the same • The major difference between the two is the target audience. • Internal marketing • Seeks to sell employees on the property and their importance to its success. • Internal Sales • Is directed toward guests already at the property, and is a systematic plan to meet guest need and increase revenues.

4. Why internal marketing is needed? • When selling any product, complete product knowledge-and personal belief in the product-is crucial. • The hospitality product is an intangible, and experience-and the primary factor in guest satisfaction is the quality of service rendered. • Since service is so important, every employee should understand the product and his or her role in the success of the operation. • Employee satisfaction and guest satisfaction are interrelated. • Employee satisfaction results in less employee turnover. • Ritz-Carlton Example

5. Establishing an Internal Marketing Plan • A Systematic Approach • Encouraging managers to treat employees with the same care and consideration that they extend to guests. • Creating employment opportunities that allow employees to grow through involvement and training • Empowering employees to deliver quality service.

6. Training and Supporting Employees • Key elements of guest service training • Address each guest by name, if possible. • Establish eye contact within 20 feet of the guest. • Smile at the guest when you get within 10 feet of him of her. • Answer a guest with “It’s my pleasure” rather than “You’re welcome.” • Escort a guest to his or her destination each time, rather than just pointing the way. • When a guest asks something of the employee, the employee should realize that he or she owns the request rather than giving the request to some other employee.

7. Empowering Employees to Deliver Quality Service • Employee Empowerment • Is crucial to quality service and is a very important step in an internal marketing program. • Gives employees the authority to make on-the-spot decisions to respond to guest needs-decisions that were previously relegated to those higher in authority. • Benefits guests (see Exhibit 1). • However, clear guidelines are needed.

8. What is Internal Sales?

9. Internal Sales • Definition • Internal sales is defined as specific sales activities engaged in by various employees of a property, in combination with a program of internal merchandising, to promote additional sales and guest satisfaction. • Objective • To increase sales by promoting effective guest-employee relationships.

10. Encourage the vital guest-employee relationships • Provide an environment conductive to good guest-employee relations • Instill pride (both in the property and in the value of their respective positions) in employees • Provide training that encourages employees to become more helpful to guests.

11. The sales impetus must start with top management and filter down to employees • Management to support and encourage employees in internal sales efforts, and to provide internal sales training, product training, and motivational programs. • Tremendous profit potential for internal sales. • In-house sales efforts are directed toward a captive audience • When selling to in-house guests, sales costs are minimal. • In-house sales efforts must be continual.

12. The Role of the General Manager in Internal Sales • The attitude of the hotel’s general manager • Will greatly influence the success of an internal sales program. • A General Manager can develop a sales-oriented staff by: • Hiring sales-oriented employees • Training employees in sales techniques • Motivating employees to sell

13. The Role of Employees in Internal Sales • Important to build guest loyalty to avoid losing even a small part of your current guest base to competitors • Relationship Selling (=Relationship Marketing) • Building guest loyalty by creating, enhancing, and maintaining a relationship with guests (see Exhibit 2). • Build relationship with guests by the use of guest profiles and the input of property employees. • Relationship can be enhanced and maintained through follow-up.

14. Employee Training • Knowing the property: property fact book, experience the property. • Knowing the community: Encourage guests to extend their stays by suggesting attractions to visit, and offering suggestions gives employees an opportunity to build good relationships with guests. • Interacting with guests: Using names, handling complaints (service recovery), • Learning sales skills: Upgrading (Top-down, rate-category-alternative method, bottom-up method), Suggestive selling (see Exhibit 3), Cross-selling

15. Applying Sales Skills • Switchboard: Often the first contact that a prospective guest has with a property, so switchboard operators should answer calls in a pleasant manner that conveys a sense of welcome. • Reservations: The influence of the reservations department and its impact on revenues. • Frond Desk: Play a pivotal role in hotel sales. • Food and beverage: Good service, a friendly attitude and a timely delivery of the food or drink ordered. • Service personnel: The valet parking staff, door attendants, bell staff, and housekeepers

16. Employee Incentive Program • Sample Incentive Program (see Exhibit 4). • Be tied to results that translate directly to bottom-line dollars. • Be tied to results that are due to employee performance. • Reward both individual and team performance. • Be tied to goals that are challenging yes attainable. • Start and end on a relatively short-term basis. • Be easy to understand by employees and easy to monitor by managers.

17. Internal Merchandising

18. Internal Merchandising • Definition • The use of guestroom guest service directories, restaurant tent cards, lobby display cards, elevator cards or posters, bulletin boards, and other promotional items to promote the property’s facilities and services (see Exhibit 5). • Technology • Video Magazine: Traveling tips, features geared toward the business traveler, information on other hotels in the chain with suggestive –selling message to book into one of these properties.

19. Guest-Contact Areas • The Lobby • Posters displayed in the lobby should promote all of the property’s food service outlets and other property features. • The use of transparencies-slide-like posters • Guestrooms • Guest service directories (pocket size). • Tent cards, folders, notices, and fliers. • Simple message placed on the television set or on the nightstand.

20. Elevator Floor Landing • Property’s restaurants, bars, and lounges, and the services and hour of each • Elevators • Posters on elevator’s side walls. • Restaurants and Lounges • Specials, well-designed menus, tent cards. • Lounges: matchbooks, tent cards, attractive drink, snack menus, and souvenir items/ • Barber and Beauty Shops • Reservation or Convention Desk. • Cashier’s Desk

21. Back-of-the-House Areas • Posters and Bulletin boards • Current sales promotions • Selling suggestions • Incentive programs

22. Special Services and In-House Promotions

23. Special Services • Special Services • Will make their stays enjoyable and productive. • Business centers-24-hour offices with personal computers, photocopiers, fax services, electronic mail capabilities, and secretarial services. • Food and Beverage Service targeted at business travelers: continental or buffet breakfast. • Supervised play activities, package tours to local attractions, in-house baby-sitting services, children’s menus, and amenities such as cribs, high chairs, and play equipment. • Limousine service or transportation to and from airports, shopping centers, and area attractions.

24. In-House Promotions • Special events, contests, drawings, two-for-one coupons, and so on. • Secretaries club-a program that involves the secretaries of corporate guests in a number of planned activities. • Encourage repeat business: Frequent traveler programs, promotional giveaways-all guests in the hotel are given a gift, but must fill out a redemption coupon to receive it, special packages for frequent guests or a special target market.