Selling Hospitality
Chapter 15
Sales Management
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Why Study Sales Management?


Knowing the role of the director of sales will
provide you a better appreciation of how to
manage your manager.
Sales management is a worthy career goal for
ambitious salespeople.
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Career Ladder in Sales
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Responsibilities of a
Director of Sales
 Determining the sales force size and
structure
 Recruiting the sales force
 Selecting and training the sales force
 Organizing the sales office
 Motivating and evaluating salespeople
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
How many sales staff are required?
50 percent of revenue group and corporate accounts
50 percent transient demand
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
How many sales staff are required?
50 percent of revenue group and corporate accounts
50 percent transient demand
• Suppose group sales last year totaled $10 million,
employing four full-time sales managers.
• Further assume that next year’s marketing plan calls
for an increase in group sales to $12.5 million (+25%).
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Workload Method for Determining
Size of a Sales Force
Clients and prospects are grouped into
A, B, C, or D categories according to their
annual sales volume.
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Key Account Management
 A accounts—established accounts that generate a high level of business. These
accounts warrant greatest attention in the form of understanding the client’s full range of
business needs through personal sales calls and telephone contacts that emphasize
consultative sales strategies.
 B accounts—consist of high-potential accounts. They may be established accounts
that are already providing a good level of business but have a potential to provide more (for
example, by winning other pieces of their business away from competitors). These may
warrant your attention at the same frequencies as A accounts, perhaps even more.
 C accounts—consist of potential new accounts or established accounts with
medium potential.
 D accounts—composed of potential new or established accounts with low potential.
Follow-up on these accounts comes last, after all other accounts have been handled.
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Workload Method for Determining
Size of a Sales Force
1. Clients and prospects are grouped into A, B, C, or D categories
according to their annual sales volume.
2. The DOS establishes a standard for the number of sales calls per
account per year for each category of accounts.
3. The total workload for sales is calculated by multiplying the number
of accounts in each group by the corresponding frequency of sales
calls.
4. The DOS and staff determine a “doable and desirable” average
number of sales calls a sales manager can actually make per year.
5. The DOS determines the number of sales representatives needed
by dividing the total workload (total number of sales calls required)
by the average number of calls a salesperson can realistically make.
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Illustration of Workload Approach
Assume that there are 30 A accounts, 75 B accounts,
200 C accounts, and 300 D accounts in your market.
Further assume that
– A accounts warrant 2 personal sales calls per month (24 per
year) and 3 telephone contacts per month (36 per year).
– B accounts merit 1 personal sales call per month (12 per
year) and 2 telephone contacts per month (24 per year).
– C accounts warrant 1 personal sales call every other month
(6 per year) and 2 telephone calls per month (24 per year).
– D accounts require 1 contact per month by telephone (12
per year).
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Illustration of Workload Approach
The company requires 3,720 personal sales
calls and 11,280 telephone sales calls per year.
The average salesperson can make 15 personal
sales calls per week (780 per year) and 43
telephone sales calls per week (2,256 per year).
The company would need 5 full-time sales
representatives to successfully manage the
workload.
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Recruitment Strategies
Internal search
External
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Hospitality Industry
Positions Available: 03/27/03
Lou Taverna: LTaverna@Hospitality-1st.com
Regional Sales Director: Orlando, FL and Los Angeles, $100K; Harrison Business
Group, LLCE-Mail: Jennifer.Bernard@HarrisonBusinessGroup.com
Senior Sales Manager, great hotel in Lebanon, NJ. 65K base; Director of Sales for
a hotel in Milpitas, CA. Mitchell T. Prager CHA: Mitch@HotelHeadHunter.com
The Bellevue Club: Director of Sales & Marketing, Napa, CA—Carneros Inn
Company: margie@otlconsulting.com
Sales Manager–OrlandoCompany: JHM Hotels Management, Inc.; Scott Wheeler:
swheeler@jhmhotels.com
DOS&M for 2 Hotels—Washington, DC—Exc. Salary & Bonus Position: Director of
Sales—Quality Full Service 300+ Rms w/16K Position: Sales & Catering Mgrs.
Branded 3+ Star call for openings; Position: Director of Sales—Major Flag Full
Service Norfolk, VA; Position: Group Sales Manager 2–3 yrs exp. Colorado Springs
$40–$45K Hospitality Management Recruiters, Inc.; Vic Haus:
vhaus@hmrsearch.com
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Structuring a Sales Force
Assigning by territory—preferred by cruise ship
companies, airlines, food and wine wholesalers, and several
corporate hotel chains
Assigning by market segment—preferred by most
hotel and resorts
Assigning by key accounts—national/corporate sales
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Organizing the Sales Force
• Two essential sales call reports
– Initial Sales Call Report
– Continuous Call Report
• Account files to hold reports for high-potential accounts
• Two filing systems
1. One standard file drawer to hold high-potential accounts (A, B, C
accounts) and one accordion file to hold initial call reports for low
(D accounts)
2. A trace card system to remind the sales manager to follow up on
all accounts at an appropriate time.
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved
Motivating a Sales Force
• When does a challenging goal become an impossible
and stressing one?
• What is an acceptable level of pressure to place on
salespeople?
• Should a DOS establish sales quotas when the sales
staff is being encouraged to establish long-term
relationships with clients? If so, at what level should the
sales quotas be set?
• Should sales quotas be set at a level salespeople have
only a 50-50 chance of reaching?
Copyright © 2006 Thomson Delmar Learning
All Rights Reserved