FRONT
SALES AND MARKETING
OFFICE
By Arpendra Chauhan

WHAT IS MARKETING?
o Marketing is the process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods and services to create exchanges that satisfy individual
and organizational objectives.
o Marketing is the management process for identifying, anticipating and
satisfying customers requirements profitability.
o Marketing is always customer oriented.
o Purpose is to create & maintain satisfied & profitable guests.
o Guests come back only when their needs are met.
o Guest satisfaction is the central goal to hospitality marketing.

—Someone famous
“It’s not your customer’s
job to remember you, it
is your obligation and
responsibility to make
sure they don’t have the
chance to forget you.”

ROLE OF FRONT OFFICE
• Front office is the information source &
request centre for guests & other employees
• FO has become a order/ revenue generating
department from an order taking department
• FO also acts as Sales Department for the
hotel
• Equally helps in generating business &
maximizing sale for the hotel
• FO must keep accurate & latest records of
guest history & room availability
• S&M team need accurate figures to make
strategies for future/ off season
• S&M team need info on guest type/ origin to
make marketing strategy & target key guest
segment
• S&M team always coordinates with FO with
regards to room status in all terms

ROLE OF FRONT OFFICE
• Sell rooms to the guests who have not
made prior reservation
• Upsell room to the guest with an
existing booking
• Maintain the accurate inventory of
products
• Convey information to the guest about
other products available for sale (Cross
Selling)
• FO is supposed to sell all available
facilities at the hotel
• Ensure maximum revenue generated not
only from the sale of rooms but other
revenue generating departments as well
• Obtain feedback

CORE CONCEPTS OF MARKETING
NEED
It is a positive,
motivational factor that
compels action for its
satisfaction. It includes
basic physical needs, social
needs & esteem needs. An
unfulfilled need is a driving
force that stimulates the
person to pursue & achieve
it.
WANT
Want maybe understood as
the way one express or
communicates his needs.

DEMAND
Demand is a want that
is backed by the
ability & willingness
to pay for the product.
PRODUCT VALUE
Value is the extent to
which a good or service
is perceived by its
customer to meet his
needs or wants, & when
it is expressed in
terms of money, known
as price.
A product is a good or
service that is the end
result of a proces &
serves as a need or
want satisfier. It is
usually a bundle of
tangible & intangible
attributes that a
seller offers to a
buyer for purchase.

SATISFACTION
Satisfaction is an
expression of a
customer’s approval that
a product’s performance
meets his expectations.
QUALITY
Quality is the totality
of features &
characterstics of a
product or service that
bear on its ability to
meet customer’s needs.

MARKETING MANAGEMENT PHILOSOPHIES
PRODUCT CONCEPT
PRODUCTION
CONCEPT
SELLING
CONCEPT
MARKETING/
SOCIAL
MARKETING
CONCEPT
The marketing concepts is the philosophy that urges organization
to focus on their customer needs. Analyzing their needs & making
such decisions that satisfy those needs in a better way than
competitors.

Sales concept focuses
on the need of the
seller.
Marketing concept
focuses on the need of
the buyer.
PRODUCTION CONCEPT means consumers will
prefer products that are widely available &
inexpensive.
Concept concentrates on achieving high
production efficiency, low cost & mass
distribution.
Assumption is customer is interested in
product availability & low prices.
PRODUCT CONCEPT will favor products that
offer quality, performance, innovative
features etc.
Focus is on making superior products &
improving them over time.
Assumption is customer admires well made
products & appraise quality & performance.
Sometimes in this concept, managers forget
about the market needs as they focus only on
the products.

SELLING CONCEPT holds consumer & business. If
left alone, will not buy enough of selling
company’s products. There should be
aggressive selling & promotion effect. Their
aim is to sell what they make rather than
make what the market wants.
MARKETING CONCEPT is the one which challenges
all the other 3 concepts. The company goal
consist of company being more effective than
competitors in creating, delivering &
communicating customer value to its selected
target customer. Marketing concept rests on
four pillars- target market, customer needs,
integrated marketing and profitability.

THE SALES & MARKETING CONCEPT
Sales concept is
preoccupied with the
seller’s need to
convert their product
into cash. Marketing
concept is preoccupied
with the idea of
satisfying the needs of
the customer by means
of the product as a
solution to the
cutomer’s needs.
Sales concept focuses on the need of the seller.
Marketing concept focuses on the need of the
buyer.
Marketing concept
represents the major
change in today’s
company orientation
that provides the
foundation to
achieve competitive
advantage. This
philosophy is the
foundation of
consultative
selling.

MARKET MIX
●Planned mix of controllable
elements of product’s
marketing plan; the four Ps-
product, price, place &
promotion
●The mix of these four form
the core of marketing system
●Service marketing relies upon
other three Ps; people,
process & physical evidence

The item actually
being sold is the
PRODUCT.
It should deliver
a minimum level of
performance, other
marketing mix wont
work, even if the
other three
elements are best
worked upon.
PRODUCT
Activities
undertaken to make
the product known to
the user & trade.
This includes
advertising, word of
mouth, commissions,&
awards to trade.
Also include
consumer schemes,
direct marketing,
contests & prizes.
PROMOTION
The value that
is set for the
product.
Depends on cost
of production,
segment
targeted,
ability of
market to pay,
supply-demand.
PRICE
Point of Sale.
Catching the eye
of the customer &
making it easy for
them to buy is
main aim of
“place” strategy.
The mantra for
successful
business is
“location,
location,
location”
PLACE

FRONT OFFICE & SALES MARKETING
RELATIONSHIP
•FO provides data on guest history
•Information is based on zip code,
frequency of visits, corporate
affiliation, special needs etc.
•FO makes the first impression on guests
who are using the hotel for meetings,
seminars, & banquets
•Guest history helps S&M to target the
specific market
•S&M develop promotions, prepare mailing
labels & select advertising media.

MARKET
SEGMENTS

GROUP
MARKET
MARKET
TRANSIENT
MARKET
Corporate, Tour
operators, meetings,
conferences, seminars,
leisure travel,
Weddings etc.
Business
traveler, Leisure
traveler

The process of dividing a market of
potential customers into groups, or
segments, bases on different
characteristics.
Segments created are composed of
customers who will respond similarly
to marketing strategies & who share
similar traits such as interests,
needs or locations.
WHAT IS MARKET
SEGMENT?

Corporate Market
Tour Operators
Meeting/ Conferences/
Seminars
The group market segment
constitutes the segments that
provide high volume & bulk
business to hotels.
Corporate Market provides
bulk & regular business. A
contract is signed with the
hotel.
TAs purchase rooms in
bulk at discounted price.
& generate high volume
of business.
Group
Market
Segment
Major market. Provide
bulk business. Book rooms
with conference halls,
board rooms etc.

Expositions- Trade shows & exhibitions bring together
individuals & organizations associated with a common
business for the purpose of reviewing, demonstrating,
marketing & selling materials & product related to
their common interest.
Incentive Travel is the travel which is given to
employees as reward for their performance. Hotels
target companies who provide incentive travel to their
employees.
Transient Market Segment- They provide
comparatively low number of room sales as compared
to the group market. This segment includes business
& leisure travel. Travel in small groups, less than 10
rooms.

SOCIAL
Weddings, Proms, Fund Raisers
MILITARY
Reunions, Award Ceremonies
EDUCATIONAL
Certification classes, Training,
Convocations
RELIGIOUS
Enlightenment gatherings
FRATERNAL
Fraternities, sororities

MARKET SEGMENT STRATEGIES
UNDIFFERENT MARKETING STRATEGY
•Market focuses on the common needs of
the people
•Goods & services are designed to satisfy
maximum number of customers
•Its not about grouping of customers or
market segments
•It relies on mass production, mass
advertising, mass distribution
•Principle of same brand, same price,
same product, same packaging, same
media, same marketing program, same
advertising is followed for all
customers in market
•Also known as MARKET AGGREGATION
STRATEGY
•This is for product oriented companies

DIFFERENCIATED MARKETING STRATEGY
•Grouping of customers is done on the basis of their common needs &
desires (region, income, age, education, personality, profession etc)
•Whole market is divided into various segments
•Different products are manufactured for different segments
•Increases sales profit of the firm
•Attracts large number of customers from all corners of society
•Offers higher customer satisfaction by providing services as per the
customers needs & desires
•Also known as CUSTOMER ORIENTED STRATEGY OR MARKET SEGREGATION
STRATEGY

CONCENTRATED MARKETING STRATEGY
•Concentration on one particular segment
instead of various segments or entire market
•Principle of one product & one segment is
followed which created brand monopoly
•This is best suited when new products are
introduced in the market
•All marketing efforts are concentrated on
one segment
•This leads to maximum customer satisfaction
According to Philip Kotler,
“Instead of going after a small share of a
large market, the firm goes after a large of
one or a few sub-markets. But another way
instead of spreading itself thin in many
parts of the market, it concentrates its
forces to gain a good market position in a
few areas.”

DISCOUNT SELLING STRATEGY
●Target is money minded guests
(middle class working people)
●Rooms are sold lower than the RACK
rate
●Discounted rate is usually given to
regular guests, TAs, groups,
airlines etc.
●Discounted rates are mostly given
during off seasons
Further subcategorisation of strategies-
STRAGEY FORMULATION FOR VARIOUS MARKET SEGMENTS
PACKAGE PLAN STRATEGY
●Target is families/ leisure guests
●Travel for rest & recreational
purpose
●Mostly prefered by Resort hotels
●Offer innovative packages on
discounted rates
●Package costs comparatively lesser
than each item paid for seperately

GROUP SELLING STRATEGY
●Almost adapted by every hotel
●Attracts bulk business
●Generates huge profits
●Includes selling of N number of
rooms to TAs at discounted rates
●Selling of rooms to corporates &
FITs
●Discounted rate is offered
STRAGEY FORMULATION FOR VARIOUS MARKET SEGMENTS
BUSINESS FACILITY STRATEGY
●Commercial hotels mostly use this
●Target guest visit for business,
meeting, conference, convention etc.
●Comparatively expensive hotels as
they provide luxury accommodation
●Facilities like internet, FAX,
computer, business centre etc. is
also provided

IMPORTANCE OF MARKET SEGMENTS
HELPFUL IN COMPETITION
Makes deep study of products, policies, strategies of
competitors in all segments. Business enterprise can adopt
different strategies for different markets taking into account
the rival strategies.
PROVIDING OPPORTUNITIES TO EXPAND MARKET
By segmenting the market, a marketer can create new markets for
their products
TO DISCOVER MARKETING OPPORTUNITY
Segmentation helps in making marketing research in all
segments. Habits, taste, hobbies, nature of consumers of
all segments can be understood deeply. Researchs help in
discovering marketing opportunities.

IMPORTANCE OF MARKET SEGMENTS
KNOWLEDGE OF CUSTOMER NEEDS
Segmentation helps in easily knowing why customer do or do not
buy certain products or services. All activities are directed
towards customer satisfaction. Segmentation helps in measuring
each level of division of each segment.
ADJUSTMENTS OF PRODUCTS
Adjustment needs to be done according to the change in taste,
needs, nature & income of the consumers.
INCREASE IN SALES VOLUME
Segmentation helps in increasing the sales volume. Each segment
has different demand pattern & when the demand is satisfied by
changing the products in different market segments, the total
sales volume of an enterprise increases.

IMPORTANCE OF MARKET SEGMENTS
ADOPT SOUND & EFFECTIVE MARKETING PROGRAMME
When customer needs are fully understood, market segmentation divides the whole
market into several segments & individual marketing programmes are prepared for
every segment. These programs are better & more effective than a single
programme for whole market.
EFFECTIVE ADVERTISING APPEAL
Advertising appeals are designed in a way so as to create a positive image of
individuals who use certain products. Message conveyed through these appeals
influences the purchasing decision of different buyer groups. Different
advertising appeals can be used for different market segments.
INCREASE MARKETING EFFICIENCY
Marketing efficiency is increased by offering specific pricing, sales promotion
& distribution channels. Unique marketing strategies can be framed (product,
price, ads, sales promotion, distribution channel etc) according to change in
needs of segments.

SELLING
TECHNIQUES
&
GUEST
SATISFACTION

PHYSIOLOGICAL NEEDS
Protection against heat,
cold, rain. Special food.
ECONOMICAL NEEDS
Value for money spent
by the guest
SOCIAL NEEDS
Attending functions,
meet others, socialize
PSYCHOLOGICAL NEEDS
Enhancement of self
pride
Guest satisfactions ensures repeat business, increases
clientele, & maximized revenue for the hotel.
To satisfy the guests, their basic needs must be met &
service must be coordinated accordingly.

GUEST DISSATISFACTION
The cause for dissatisfaction generally fall under two categories:
UNDER THE CONTROL OF THE HOTEL
(Unhelpful staff, cramped condition, lack of choice of product)
BEYOND THE CONTROL OF FO OF THE HOTEL
(Location, weather, other customers, transport problems)

SELLING TECHNIQUES
STARTING WITH RAPPORT
-Use pace & lead
-Make guests feel welcome & secure
first
-Advise guests in their best interest
SELL THE WHOLE PACKAGE
-Customers don’t just buy rooms, they
buy hospitality, security, status &
comfort
-Manner & ability to build rapport will
be powerful to sell total package to
the customer
-Describe services & facilities in what
the guests might be interested in
-Use appealing descriptive phrases when
referring to rooms

PACE THE TRANSACTION
-Natural to ask the guest whether he wants to purchase or make a booking
-Make it easy for the guest to take the decision
-Put together the offer that meets his needs
OPENING, DEVELOPMENT & DEALING WITH HESITATION (ODD)
-Opening: informing about the rooms & services availability
-Development: answering about the questions about the rooms & facilities,
stressing attributes that are most likely to appeal to the guest
-Dealing with Hesitation: dealing with the factors because of which the guest is
unable to take the decision. One can offer the
opportunity to inspect the room, might offer
alternative options for the value for money.

EMPHASIZING THE VALUE FOR MONEY
-Justification to the guest for a upgrade
-Justification for extra expenses by
explaining the benefit gained by paying
extra (Upsell/ when paying high rates)
USE OF PRICE PSYCHOLOGY
-Quoting a high priced options along with
other alternatives may help the prices
look better
-Guests will feel they are getting
superior quality, at a reasonable price
OFFER LEAD IN ROOMS
-Selling high or top down selling
approach
-Easier to convince the guest to consider
superior, once the guest has already
settled on a standard

UPSELLING OF ROOMS
•Convincing the guest to take higher
category by paying more
•The best time is during check-in & at
booking stage
•FD staff should be able to identify the
guest who are willing to upgrade
CROSS SELLING OF ROOMS
•Selling related or additional products
•Convinces the guest to add extras
•Inform the guest about availability of
added value facilities & services
•Information about added facilities
should be targeted to the guest
enquiries or anticipated needs, in
order to be effective

REPEATED BUSINESS
•Check out is the best time to boost up repeat business
•Tentative reservation option to be offered if the guest is
expected to come anytime soon
•FD can provide brochure & business cards
•Provide assurance of quick reservation anytime in future
•Offer loyalty card membership to attract guest with benefits
REFERRED SALES
•Travel agents, tourist information centers, airport helpdesks etc
can refer the guest to the hotel
•Satisfies guest will also recommend another guests
•Word of mouth is the best publicity of the market

THANK
YOU!