Selling Hospitality & Tourism Chapter 12 Distribution Selling Hospitality & Tourism Channels of Distribution

Chapter Objectives Explain the types of selling. List the steps of selling. Differentiate between features and benefits. Define channels of distribution. Identify indirect channels of distribution. Discuss the Internet channels of distribution.

Types of Selling Selling involves identifying the needs of customers and being able to meet those needs through providing products, or goods and services. Selling is part of promotion, one of the four Ps of the marketing mix. Section 12.1

Types of Selling Two types of selling are personal selling and nonpersonal selling. Sales promotion, publicity, and advertising are types of nonpersonal selling. Section 12.1

Types of Selling Personal selling can occur in a retail store, in your own home, over the telephone, or in an office. personal selling the type of selling that involves direct interaction between sales associates and customers Business-to-business selling is another type of selling. business-to-business selling the type of selling whereby one business sells goods or services to another business Section 12.1

The Sales Process Seven Steps of Selling Identify customers. 1 2 3 4 5 6 7 Approach Determine needs Present the product Overcome objections Close the sale Perform suggestion selling Follow up Identify customers. Find out what the customers want or need. Present ideas for additional product sales. Stay in touch with the customer after the sale. Motivate the customer to action. Select a product to fit the need or want and make a recommendation. Answer questions or eliminate doubts about a product or service. Section 12.1 7

The Sales Process When presenting the product, look for buying signals. buying signals verbal or nonverbal signs of a customer’s readiness to buy Section 12.1

The Sales Process When performing suggestion selling, you may have opportunities for cross-selling and selling up. cross-selling the method of selling the customer additional related products tied to one name selling up offering a more expensive or upgraded version of the original recommendation Section 12.1

Sales-and-Service Link Service is what distinguishes hospitality and tourism products from other products. Selling without service is a disappointment. Service builds customer loyalty. Section 12.1

Sales-and-Service Link Customers Expect: Needs to be met Respect Prompt and efficient service A knowledgeable sales staff A professional attitude from sales staff Section 12.1 11

Selling Features and Benefits When selling, it is important to identify an important feature and distinguishing benefit of a product or service. feature a basic, physical, or extended attribute of a product or purchase benefit a feature advantage of a product Section 12.1

What are the steps of selling? How are sales and service linked? 12.1 1. What are the steps of selling? How are sales and service linked? What is feature-benefit selling? 2. Quick Check Answers The seven steps of selling are: (1) Approach, (2) determine needs, (3) present the product, (4) overcome objections, (5) close the sale, (6) perform suggestion selling, and (7) follow-up. Selling without service is a disappointment. Customers demand service. Service builds customer loyalty. Effective sales associates interpret how the features of a product will benefit the customer. 3. Section 12.1

Channels of Distribution After goods and services are produced or created, they must reach the customer. A channel of distribution is the path a product takes from the producer. Section 12.2

Channels of Distribution A channel of distribution can be a direct channel or an indirect channel. direct channel the path a product takes without the help of any intermediaries between the producer and consumer indirect channel the path a product takes using intermediaries between the producer and consumer Section 12.2

Channels of Distribution Travel agents serve as the most familiar indirect channels of distribution. Travel agents do not own or provide the goods and services they sell. Travel agents act as brokers between suppliers and travelers for a fee or commission. Section 12.2

Channels of Distribution A consolidator and a tour operator are two other types of intermediaries. consolidator an agent who buys unsold products in bulk from suppliers and resells the products at a discount to intermediaries or to consumers tour operator an intermediary who negotiates special rates and blocks space with transportation services, cruise lines, and hotels, and packages multiple components of a vacation for resale to the public or to another intermediary Section 12.2

Internet Channels The e-tail channel is fast, economical, and offers a channel for goods and services that can be accessed from anywhere in the world. e-tail the sale of goods or services to the customer by means of the Internet Section 12.2

Four Main Categories of Internet Channels Company Web sites Affinity sites Discount sites Portal sites Section 12.2 19

Internet Channels To succeed, online travel Web sites must: Be easy to use Provide good service Offer what customers want Add value to the experience Online travel sales grew to $28.9 billion in 2004—and reached 29.2 million households. Section 12.2

Key Elements of Selling Getting products to the marketplace through distribution channels is the first step before sales can occur. Selling is a process that requires a series of steps to achieve the desired result. Adding value to an experience and demonstrating the benefits of the product’s features will help gain customers for life. Section 12.2

Tracking Travel Purchases Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com. In 2002, the travel-marketing service Tripadvisor found that most online leisure travelers spend at least a month researching and planning a trip before purchasing it. After one month, the number of purchases is five times higher than on the day an ad is originally clicked. Online services need better tracking systems to find out which customers are returning. For more information, go to marketingseries.glencoe.com. Section 12.2 22

What is a channel of distribution? 12.2 1. What is a channel of distribution? What is the role of the intermediary? What are some indirect channels of distribution? 2. Quick Check Answers A channel of distribution is the path a product takes from the producer to the consumer. An intermediary acts as a broker between suppliers and travelers and is paid a commission. travel agents, consolidators, tour operators, and Internet channels, such as Internet travel companies and online travel sites 3. Section 12.2

Checking Concepts Explain personal selling. The key to providing quality service is going beyond simply meeting the needs of customers. 3. Benefits are feature advantages of a product. Selling benefits means matching those benefits to the needs or wants of the customer. 4. There are seven step of selling: approach, determine needs, present the product, overcome objections, close the sale, perform suggestion selling, and follow up. 2. Personal selling is a type of selling that involves direct interaction between sales associates and customers. 1. Identify the steps of selling. Identify the key to providing quality service. Checking Concepts Answers Personal selling is a type of selling that involves direct interaction between sales associates and customers. There are seven step of selling: approach, determine needs, present the product, overcome objections, close the sale, perform suggestion selling, and follow up. The key to providing quality service is going beyond simply meeting the needs of customers. Benefits are feature advantages of a product. Selling benefits means matching those benefits to the needs or wants of the customer. Discuss the role of using product benefits in the selling process. continued

Checking Concepts Define a direct channel of distribution. Internet channels of distribution include: company Web sites, affinity sites, discount sites, and portal sites. 7. Indirect channels of distribution are paths a product takes from producer to consumer using intermediaries. In tourism, indirect channels of distribution include travel agents, consolidators, and tour operators. 6. A direct channel of distribution is the path a product takes from a producer directly to a consumer without the help of intermediaries. 5. Identify at least two indirect channels of distribution in tourism. Checking Concepts Answers A direct channel of distribution is the path a product takes from a producer directly to a consumer without the help of intermediaries. Indirect channels of distribution are paths a product takes from producer to consumer using intermediaries. In tourism, indirect channels of distribution include travel agents, consolidators, and tour operators. Internet channels of distribution include: company Web sites, affinity sites, discount sites, and portal sites. Name four types of Internet channels of distribution. continued

Checking Concepts Critical Thinking Online travel Web sites must be easy to use, provide good service, offer what the customer wants, and add value to the experience. 8. Explain the characteristics of successful online travel services. Checking Concepts Answers Online travel Web sites must be easy to use, provide good service, offer what the customer wants, and add value to the experience.

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