MOD006063 Hospitality Management : UK Economic and Market Policies

Task A Research report describing the elements of the product in a business and services context.  

Select and base yourself on one UK based hotel when required

Carry out an individual research into the element of the product. Using your research, produce a written report of your findings which should include:

An assessment on how market segmentation contributes to maximise sales (ref. 1.3)

Task B Research report describing the external sales development techniques.

Base yourself on the same hotel than Task A when required

Carry out an individual research into external sales techniques. Using your research, produce a written report of your findings which should include:

A discussion about the factors affecting buyer behaviour (ref. 2.1) (+M2)

Task C Research report describing the role of staff in maximising sales.

Base yourself on the same hotel than Task A when required

Carry out an individual research into the role of staff in sales. Using your research, produce a written report of your findings which should include:

A discussion about the influence of operational design on sales revenue 

Place and distribution:  

It facilitates services to effortlessly access the products. Langham Hotel, London is located in the center of Watford city which area is nearest to outskirts and hill station. This hotel uses direct or indirect distribution technique to reach more customers. Under direct technique, Langham Hotel, London uses sales through hotel sales staff, hotel website booking system, banner advertisement and global distribution system. In the indirect technique, the company can maintain good liaison with the planner of event and travel agents (Steenkamp, 2017). The hotel can execute the online travel portals and emphasizes on promotional activities such as making public relation and mail campaigns.

Price strategy

Langham Hotel, London influences customer by offering devalue and discounting services on products. It also focuses on a certain class of people such as luxury class, business class and special discount for government workforce at weekend (Kanagal, 2014). 

Promotion and communications

Sales and marketing method is implemented by the recognized Langham Hotel, London to interact with targeted customers. There is a different type of communication channel is used by a company such as a commercial advertisement, social media like Google + page, YouTube, Facebook, Twitter, and websites and billboards (Wearne, and Morrison, 2013). 

Service offered

It also delivers high-class services to their targeted customers. It has luxurious rooms as well as trained staff to make good liaison with the customers. It emphasizes not only old consumers but also penetrate new customers with respect to products and services. Langham Hotel, London facilitates different kinds of banqueting rooms, product guest room, demonstrates check-in and check-out facilities, parking services and conference, and seminar rooms (Jakada, and Gambo, 2014). It also facilitates Wi-Fi services, video conferencing, and internet connectivity to persuade business class people.

1.3 Market segmentation contribution in sales

It is analyzed that accessibility, sustainability, and measurability are an essential action for segmenting the market. The market can be segmented on basis of geographic, cultural, demographic, behavioral and psychographic reason. Market segmentation can influence the consumer behavior and purchasing power. Sub-division of the market is required to gain profit and sales (Ailawadi, and Farris, 2017). Langham Hotel, London segmented its market as per the various factors that are discussed as below:

Demographic factor:

The company should consider different services to their potential customers for developing Langham Hotel, London such as income level of employees. In this way, the company can provide 40% discount to government employees at weekend, age-wise segmentation and can attract luxury and business class people by delivering the product as per their needs. Another factor is social motives of guest, individual requirement, expectation and a behavioral segment that can be used by Langham Hotel, London to segment the market hence it will contribute to enhancing the profit and sale (Low, et. al., 2015).

Psychographic Segmentation: 

Under this category, Langham Hotel, London can segment the market as per the lifestyle of customers such as attitude, notion, views associated with products, and services. In this way, it can set the price and room services as per the customer’s needs (Wilson, and Shailer, 2015). As a result, it will contribute to gain sales of the Langham Hotel, London.

Geographic Segmentation: 

Langham Hotel, London can also categorize the market into national, regional and international wise for capturing a large number of customers. There are different factors that should be considered by hotels like business, occupation, income, and generation. It will contribute to increasing the sales (BURGHELEA, 2015).

Behavioral Segmentation: 

Langham Hotel, London can also target the customer as per their behavior associated with products and services such as parties and marriage function in the hotel. Hence, a large number of customers attracts with respect to products and services (Leonidou, et. al., 2013). Langham Hotel, London can emphasize on the segment with loyal class however it should facilitate discount to public sector employees and government employees on affordable price at weekends. It can also offer other services like a conference room for luxury class, gym, and guest room with video and internet conferencing services (Wood, 2017).

Task B 

Maslow’s Hierarchy of Needs theories

(Sources: Wong, and Wickham, 2015).

Physiological Needs
The basic need could be delivered by Langham Hotel, London to their customers. This need is the base of the pyramid and includes different factor like air conditioning, heating, facilities and Wi-Fi. Langham Hotel, London should focus on considering these factors at initial level as it would be beneficial to meet the need of customers (Patiar, 2016).

Protection and Security

This is the second level in which Langham Hotel needs to focus on providing a guarantee of security and protection. Maslow takes into consideration about the security of morality and body between others. In the physical element, the hotel can entail the CCTV facilities, first-aid kits, safe-boxes, relationship with providers, and lifeguards as it contributes to enhance their resources and increase revenue (Wong, and Wickham, 2015).

Love and Belongingness

This level entails the need for family, friendship, and intimacy. It is associated with the ability of an individual to develop and create relationships. Hence, in this level, Langham Hotel, London can integrate all aspects of customers and feeling of being acknowledged by rest of people (Davis, et. al., 2013).

Esteem
The fourth level of the pyramid of Maslow depicts the needs associated with a feeling of being appreciated and increase acknowledgment. There is two version of need such as the need for respect from others i.e. lowers version and need of self-respect i.e. higher version. The higher version entails need of a person like confidence, self-recognition, self-esteem, independence, freedom, and achievement. The lower version is associated with needs to be acknowledged and valued by other people (Gordon, and Brezinski, 2016). It facilitates sense to an individual for making a contribution towards society. These needs are worth, status, self-esteem, control, recognition, and consideration.

Self-actualization

This level is associated with character and idea of hotel’s manager. The requirement incorporated in this level is self-actualization in terms of personal growth and achievement. It depends on the personal drive and attitude of a person in strength. The Langham Hotel, London should cover these needs in their strategy to retain the existing customers (Brito, and Harkiolakis, 2017).

Stages of Purchasing Process

Stage 1 − Needs and Requirements

This is the first step of buying procedure in which consumer address a problem and requirement that needs to attain.  The needs could be created through both external and internal stimuli. Under this stage, the marketer should understand the customers to assess the kind of needs, what they want to buy, and how they lead the consumers with respect to specific products and services (Rhou, and Koh, 2014).

Stage 2 − Information Search

Under this phase, customers identify more information. The consumer may emphasize on active information search. The consumer can pool the information from different sources such as personal, public experiential and industrial sources. In this way, personal sources include the neighbors, family, acquaintances, and friend. Along with, public sources entail the consumer rating, mass media, and organization.  As well as, experimental sources entail the examining, handling and using the products and services. Industrial sources incorporate the salespeople, packaging, advertising, and dealer (Perera, 2014).

Stage 3 − Evaluation of Alternatives

Under this stage, the consumers search different data to assess best brands from different alternatives. In this way, it can be stated that how the consumer thinks regarding assessing purchasing alternatives is relied on the individual consumer and particular purchasing circumstances. In certain phenomenon, customers use rationale thinking while in other circumstances, customers do little assessment rather than buying the product as per their desires and perceptions (Gurol, and Bilen, 2015).

Stage 4 − Purchase Decision

Under this stage, the consumer buys the products and services. A consumer will purchase their desired products; however, there could be two factors such as purchase decision and purchase intentions. The first factor is the outlook of people and the second factor is unanticipated circumstances factors. The customer may develop their purchasing decision on the basis of different factors like usual price, usual product benefits, and usual income (Sitawati, et. al., 2015).

Stage 5 − Post-Purchase Behavior

Under this stage, the customers take step after purchasing. It relies on their dissatisfaction and satisfaction level. These satisfactions level also rely on the association between performance of product and expectation of consumer. In case, the company does not consider the expectation of customer within their products and services then it will disappoint to them. In contrast to this, in case, the company meets the expectation of customers through offering their desired products and services then it will satisfy to them. Along with this, if the company exceeds the expectation of customers then it will happy to them (Morosan, et. al., 2017).  

2.1 Different factors which influence the consumer behavior

There are several factors which affect the behavior of consumer:

(Sources: Morosan, et. al., 2014).

Culture factor:

Culture is the essential element of society which is essential to comprehend the wants and behavior of customers. It transmits ideas, message value, and feelings that can be lucrative for a person. There are different tribal groups, geographic, and ethnic groups which comes under subculture. The hotel culture is emphasized on high-quality and conduct ethical behave with every sort of customers (Rogers and Davidson, 2015). This factor considered different sub-element which is discussed as below:

Culture

Culture is the part of Langham Hotel, London and is the key cause of conducting purchasing behavior. The persuasion of culture regarding purchasing behavior may differ from nation to nation; hence sellers should be cautious in terms of assessing the culture of different regions, groups and nations (Witt, et. al., 2013). 

Social Class

Each society has different kinds of social class which is essential for marketing because the purchasing behavior of the customer in a specific social class is homogenous. Therefore, the company should focus on a different social class to make marketing activities (Utami, and Ryadi, 2013). 

Social factor

There is a different social factor like family, reference groups, role and status which influence the customer behavior. It facilitates different sort of facilities to their customers such as dining-out practices, travel channel and discount at weekends to government workforces. Moreover, the Langham Hotel, London can target the loyal customers by conducting meeting and marriage party (Jayawardena, et. al., 2013).

Reference groups

The reference group is a part of creating the attitude and behavior of a person. The impact of reference group may differ across products and services. For instance, if the goods and services are tangible such as car, shoes, and clothes then it persuasion of reference group could be high (Elbanna, et. al., 2015).

Family

Buyer behavior is highly persuaded by a member of the family. Hence, vendors are making efforts to address the role and impact of the wide, husband and children. In case, judgment of buying a specific product and service is highly persuaded by the wife then the seller will try to target the women in their advertisement. But, it is identified that purchase of role can be changed with transforming lifestyle of the consumer (Utami, and Ryadi, 2013). 

Personal factors: 

There are distinct factors which influence the attitude of customers. These are income level, economic situation, self-concept, lifestyle, self-concept, age, and personality. Along with this, the lifestyle of a person is associated with demographic, and opinion factor in which hotel can provide a discount to government workforces at weekend (Morosan, et. al., 2017). Following are a key personal factor which may influence the consumer behavior towards Langham Hotel, London:      

Age

Age and life cycle is a significant factor which may have a potential impact on the buying behavior of the consumer. It is analyzed that consumer may make an alteration in their buying habit of goods and services over time. Family life cycle entails different stages like a married and unmarried couples and singles which aids marketing executives to build appropriate products and services for each phase (Gurol, and Bilen, 2015). 

Occupation

The occupation of an individual has a major impact on their purchasing behavior. For instance, a marketing executive of a company is making efforts to purchase business class services whereas low-level employees at the same workplace may buy low-class services (Rhou, and Koh, 2014). 

Psychological factors: 

There are different factors which may influence the consumer purchasing behavior such as belief, attitudes, and perception. Thus, a marketer can alter the opinion and belief of customers by introducing special marketing campaign (Davis, et. al., 2013). Following factors are considered as psychological factors:

Motivation

The extent of motivation can also influence the buying behavior of customers. It is analyzed that each individual has distinct needs like social, biological and physiological needs. Needs can differ from person to person such as it could be urgent for a person while could be less pressing for others. Hence, a need becomes a motive of purchasing the services of a hotel. Because, when it is urgent then it may lead a person to look for satisfaction (Wood, 2017). 

Perception

Perception is another factor associated with a psychological factor which may affect the purchasing behavior of customers. Perception means to choose, manage and interpret data in a way to create the meaningful experience of things. Further, different perceptual procedures are used by a person named attention, selection, distortion and selective retention. Under the selective attention, the vendor is making efforts to persuade the customer’s attention. In opposed to this, in case of selective distortion, customers may make efforts to interpret the data in a way that aids what a customer already thinks about the products and services. Along with this, in the case of selective retention, marketers make effort to retain data that aids their beliefs (Leonidou, et. al., 2013).

Task C 

4.1 Evaluation of personal selling techniques 

There are different skills required in personal selling techniques named communication and good personal skills. Product and service understanding is required to sell the products and services. The recognized Langham Hotel, London keeps the association with customers and creates awareness regarding new discount strategies and tactics. For personal selling, the hotel should select right employees at the right place and provides training to them. As a result, selling skills can be improved that is effective for workforces, hotel, and customers (Wood, 2017).

Non-verbal communication

Non-verbal communication is defined as body language which is very essential to get what a hotel manager wants in life, particularly in selling. This is a procedure of signaling connotation via inter-personal deeds that does not entail verbal words. Non-verbal communication is effective personal selling technique that provides a medium to make communication between prospect customers and salesperson (Leonidou, et. al., 2013). Manager of Langham Hotel, London can use non-verbal message to converse about interest of other, persuade others and make start and end communication.   

Up-selling opportunities

Up-selling is another technique of personal selling that provides option to customers for buying an item that is highly better as compared to the one they are bearing in mind. For generating the up-sale, salespeople of Langham Hotel, London may provide more expensive goods and services, and recommend an upgrade the customer to buy add-ons (Wilson, and Shailer, 2015).

Customer needs and wants

Customers have specific needs and wants that they want to fulfill. Hence, it can be stated that if the customer does not have needs then hotel cannot execute the personal selling. As, customers make changes in their needs and wants hence hotel manager should identify it to make effective marketing strategy (Low, et. al., 2015). For example, Langham Hotel, London should use face to face communication to make liaison with the customers because in the current scenario, customers become more sharp and knowledgeable to make buying decision.

Recommendations For Improvement 

Langham Hotel, London can use distinct personal selling techniques that are discussed as below:

Sales call: Day to day target is predetermined by the company and attained by them in a well-planned way.

Sales trip: It is initiated by the company to grow their business and gain awareness of products and services.

Telephone selling: Company should make contact with the customers by receiving an incoming call and obtaining outgoing calls with respect to hotel services. Tele caller should be well qualified to assess the need of customers as promptly and offer the answer to them on the spot. Langham Hotel, London should emphasize on societal and cultural base activities hence it would beneficial to persuade a large number of people and improves the business growth (Low, et. al., 2015).  

4.2 Influence of operational design on sales revenue 

It is an accountability of workforces to increase the performance. The company should execute an operation to decline expenses and increase efforts in an effective and efficient way.

Equipment operation design

HVAC system would be utilized by the corporation to save the energy and decline expense. It uses LED bulbs which aids them to keep hundreds of dollars on emotional bills. Direct sales are exercised by the corporation to categories the customers and create a position in the rivalry market. The recognized hotel creates strategy initiatives and effectively executes that plan to enhance its business procedure and attain its target goal in a well effective way. For example, Manager of a Langham Hotel, London gives training to employees to develop their understanding associated with sales and operation function, As a result, it would be beneficial to encourage staff to perform better (Wilson, and Shailer, 2015).

Ergonomic operation design

Ergonomic evaluation describes the expected uncertainties with respect to illness and injury in a service. Ergonomic plans are written by the hotel to decline the risks. For example, Langham Hotel, London can use ergonomically designed space to gain their efficiency and productivity by declining low energy and stress (Gehrels, and Blanar, 2013). As a result, it would be significant to encourage staff to perform better.

Workflow operation design

Preparation

Langham Hotel, London owner should analyze the performed work of each department before planning of the workflow. As a result, it would be beneficial to expect the staffing needs. Further, the plan should entail the preparation for each activity. For example, the front desk of Langham Hotel, London may be competent to deal with light bulb alteration and remote control application during the nighttime. As a result, it would be effective to lead staff to perform better. It allows the company to work without an onsite safeguarding individual at that time. Further, front desk staff should be available to deal with the problem and check in to new guest and process of checking out during the morning and early evening shift (Bowie, et. al., 2016). 

Scheduling

After preparing for receiving guests, hotel manager should build schedule as per the analysis of hotel’s needs. They should also create a work schedule for a month in advance as it would be beneficial to decline the conflicts among employees. Further, workforces need to put in holiday and retreat appeal one month in advance as it would be effective for Langham Hotel manager to give sufficient time to make schedule alterations (Chandiok, and Sharma, 2017).

Conclusion: 

It can be concluded that research report explores regarding products and services offered by Langham Hotel, London. Further, market segment and product mix play a significant role for the hotel manager to enlarge business and improve their market share. It can be also summarized that external and internal merchandising are required for recognizing Langham Hotel, London to influence a large number of customers with respect to products and services. In the last, it can be concluded that Langham Hotel, London should comprehend the need of product mix and key principle which is required for sales training programs.

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