Sales and Merchandising Development

Sales and Merchandising Development

Critical Components of the Product

Products are the final products produces to satisfy a specified need with a target end-use as the buyer. Different industries have different products. Burj Al Arab mostly falls in the hotel and hospitality industry with restaurant services, dining, accommodation packages, and conference commodities as the major products.

Product Life-Cycle

Product life-cycle can be divided into specific stages. They are introduction, growth, maturity, and decline. A product is first introduced to the market and takes some time to grow and be accepted. In due time, the product attains maturity and eventually declines since it is no longer as desirable. Other new products in the market may replace it.

Components of Products

There are several significant components of the products. These elements include the actual product, its unique selling points, and branding. The actual product refers to the advantages due to a user of the product. Branding refers to the identity of the product in terms of a logo or trademark. The unique selling points of a product are what distinguishes it from similar ones in the market. They can include physical appearance and packaging, among other characteristics. In the case of Burj Al Arab, one of the most luxurious hotels in the world, the actual product is the comfort and luxury enjoyed by the hotel guests. The unique selling points of the hotel include its location. It is situated in the tallest building in Dubai and is one of the tallest hotels in the world, which is built on a private island. The hotel brand is the unique structure resembling a ship, which is a trademark for the hotel.

The product mix of a company refers to the array of goods provided by this company. A more extensive array of products results in a broader profit margin. The elements of a product mix can be divided into four major groups, including length, breadth, depth, and consistency (Kokemuller, 2017). All these elements carry different advantages to the sales and profits of the company. The length refers to the number of distinct types of a product available from a particular company. Burj Al Arab offers different packages for a stay at the hotel. These packages are designed to accommodate the diverse needs of consumers. The breadth of the product mix refers to the different types of products available from a company. In the case of the hotel, there are various provisions, such as dinner, restaurant meals, and luxury accommodation. It expands the target market of the hotel, and consequentially, increases its sales. The depth of the product mix refers to the options available to the consumer while selecting a product. Burj Al Arab provides luxury shuttle services for different packages. Depth is meant to entice customers to purchase a particular product. It encourages customer loyalty. Various elements of the product mix, therefore, have different benefits to the sales and profit of a company.

Market Segmentation and Sales Maximisation

Market segmentation involves dividing the market into distinct groups, depending mostly on their preferences. The groups can get divided by gender, age, location, and the patterns of spending. The main advantage of segmentation is the ability to identify who needs what, branding, and selling it to them. This system ensures that sales are maximized without incurring high costs on expenditures. Segmentation makes it possible to target a specific demographic group to purchase a particular product. Segmentation also increases the chances of customer retention. The resulting outcome of market segmentation is the increased sales revenue of a company (Homburg, Jensen, and Krohmer, 2008).

Application to Burj Al Arab

The hotel divides its market on different bases, for instance, age. It is done by providing dining selections for children separate from those of adults. Another segmentation is in the form of geographical, psychological, and behavioral division. It is made with such factors in mind to accommodate clients from different backgrounds and with distinct preferences.

Factors Affecting Buyer Behaviour

There is a range of factors that may affect consumer behavior. These factors can be divided into social, economic, and political. One of the most crucial factors is the consumer’s financial situation. A rational customer will only purchase what is affordable to them. Most people will also generally go for the cheaper option to try and save a coin. Politically, in the case of Burj Al Arab, clients will research the political climate before visiting the hotel. The social aspect and culture refer to an individual’s lifestyle, which is a vital determiner of what they can consume and what they stay away from. To increase sales, a hotel should ensure they are able to accommodate different cultures. Burj Al Arab is located in a predominantly Muslim region. It is, therefore, paramount for the hotel to make moves to provide non-Muslims too.

Advertising Media

An advertisement is a significant tool used to increase product sales. There are different media used for publication. Typical forms of publication today involve social media, online publications, websites, and agencies. Burj Al Arab should select a press that targets different demographics. Their most popular customers may be international young couples. An appropriate advertising media for the product would, therefore, be one that is readily available for this group. Social media platforms like Instagram and Facebook would be an effective form of advertisement for this demographic group. The media selected should also be affordable to the hotel and readily available. The message used in the advertisement should be one that particularly appeals to this target group (Homburg, Jensen, and Krohmer, 2008).

External Merchandising

External merchandising refers to a process of promotion and display of products to potential consumers intending to maximize sales. This activity is mostly carried out in areas that attract a significant number of people, such as retail stores, public parks, parking spaces, among others. The process makes it easier to attract new customers to the product, hence increasing the customer volume. It can be done through the use of pamphlets and brochures in the case of Burj Al Arab. There are several recommendations to be considered in the process of external merchandising. They include:

• Ensuring that the quality of products is at its best;
• The product should be designed in a way that is attractive to potential customers;
• The company spreads its efforts to different parts of the target market;
• Making serious consideration of the location to carry out the exercise.

Design and Layout

Customer spend refers to the total amount paid by a consumer on a product. The amount paid by a consumer is dependent on a range of factors, including the quality of a product, perception of it, its design, and unique selling points, among other factors. The design and layout of the product, however, is one of the most vital factors determining how much a customer is willing to spend. In the case of Burj Al Arab, to increase customer spend, the hotel would have to ensure their design appeals to the consumers. Factors within a layout that affect the consumer include the environment and the accessibility to the product. The ease in purchasing products offered by Burj Al Arab online at the comfort of one’s home is one of the factors that encourage a consumer to make a purchase.  According to (Vrechopoulos et al. 2004, p13), the structural layout of an enterprise increases the chances of receiving unplanned purchases. Attractive designs increase the tendency of a buyer to consume more in the hotel. Burj Al Arab layout and structures should be strategically designed to attract not only regular consumers but also the chances of attracting new unplanned purchases.

Review and Evaluation of Internal Merchandising Materials

The competitiveness of an organization in the industry largely depends on critical analysis of both internal and external environmental factors and developing a competitive advantage over the rivals. Interior merchandising refers to the use of electronic aids, posters, and pamphlets to inform consumers about a product within the premises of the production office or point of sale. An example is advising hotel clients of the new products offered at the hotel. In order to effectively develop a competitive advantage, Burj Al Arab should significantly consider ergonomics and the environment as primary critical factors. The working environment is essential in motivating the employees within an organization. Management should enhance a better working environment and conditions by providing the best working equipment, heating, and controlling the noise in the working environment (Bhatia, 2008).

Promotional Activities

Promotional activities are measures undertaken by a producer in an attempt to make their product more popular in the market. Different scenarios, however, call for various rules. It is, therefore, necessary for a producer to sit back and analyze a situation before deciding on the strategy to apply (Homburg, Jensen, and Krohmer, 2008). The main methods of promotion are advertising, public relations, personal selling, direct marketing, and sales promotion. These can all be achieved by the use of coupons, discounts, and free gifts If Burj Al Arab, for instance, wanted to introduce a new product in the market, it would be a separate scenario from one where they intend to increase the sales on a particular product. The utilization of discount as a promotional approach is classified among the most effective strategies. Burj Al Arab can utilize the discounts on their services which will significantly increase their sale volumes. Free gifts for the consumers also increase sales volume and should be considered as a strategic approach in penetrating the industry. Advertisement could be in the form of visual media, such as television, billboards along the roadside, or other forms. In the case of expanding sales, sales promotion might achieve better results than the advertisement.

Personal Selling Techniques

Personal selling is an approach to marketing that involves one-on-one interactions between persons. Communication plays a critical role in the development of a competitive brand in the industry. It enables the producers to understand consumers’ needs and wants a crucial stage towards the development customer satisfaction approach. Some of the techniques involved in this method include up-selling opportunities and non-verbal communication. The establishment of Burj Al Arab should be based on customer satisfaction and develop a competitive advantage based on the same. Non-verbal communication skills include the measures taken by sellers while trying to make their product more attractive to the consumer (Albers, Mantrala, and Sridhar, 2010). Some of these measures include facial expression, tone of voice, and gestures, among others. A positive facial expression, for instance, smiling, indicates friendliness and readiness to work side-by-side with the consumer. Upselling opportunities are chances to entice consumers to purchase products that are high-end as compared to what they initially use, for instance, encouraging a hotel client to move from a small suite to a larger one or to include the shuttle service in their package. The techniques may be improved by ensuring sales representatives approaching consumers on behalf of Burj Al Arab are respectful and welcome all types of responses from consumers. They should also be willing to answer questions brought forth by the consumer (Albers, Mantrala, and Sridhar, 2010).

Operational Design and Sales Revenue

The functional design is a level of strategy implementation that involves constructing a framework that ensures effective planning and execution at the workplace. The most fundamental approach to functional design is ergonomics. It is the process of organizing systems at the workplace to ensure they are a fit for the people who use them. It involves the application of physiological and psychological factors to acquire this type of organization. In the case of Burj Al Arab, for instance, sales representatives are assigned to this field depending on their interpersonal skills. People without proper interpersonal skills should not be entrusted with the role of convincing consumers to purchase a product. Ergonomics, therefore, guarantees increased sales revenue.

Key Principles of a Sales Training Programme

Several critical principles should be included in the process of selling. One of these principles is a positive attitude towards sales. Additionally, human resources is a crucial element that should be included in the sales training program. The training should emphasize proper motivational incentives and the most appropriate manner of enhancing teamwork in an organization. A measure that could be put into action by Burj Al Arab is the incorporation of a sales role in the company in case it is non-existent. Incorporation sales roles should also be incorporated in the training program to enhance teamwork within the sales department critical in the long-run competitiveness of the Burj Al Arab as a firm. The rationale for this move is to prioritize the sales function. It is also essential to include rewards and incentives for sales representatives. Burj Al Arab can introduce a policy that provides incentives for salespeople. Promotional sales approaches of the hotel should be incorporated into the training program. These rewards will encourage salespeople to maximize the effort they put in the process of selling.

References

Albers, S., Mantrala, M. and Sridhar, S., 2010. Personal selling elasticities: a meta-analysis. Journal of Marketing Research, 47(5), pp. 840-853.

Bhatia, S., 2008. Retail management. 1st Ed. New Delhi: Atlantic Publishers & Distributors.

Homburg, C., Jensen, O. and Krohmer, H., 2008. Configurations of marketing and sales: a taxonomy. Journal of Marketing, 72(2), pp. 133-154.

Kokemuller, N., 2017. The elements of product mix. Bizfluent. [Online] Available at: https://bizfluent.com/info-8597804-elements-product-mix.html [Accessed 20 Feb. 20].

Vrechopoulos, A.P., O’keefe, R.M., Doukidis, G.I. and Siomkos, G.J., 2004. Virtual store layout: an experimental comparison in the context of grocery retail. Journal of Retailing, 80(1), pp.13-22.