1. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Selling Hospitality Chapter 6 Situational Selling: Selling Approaches Depend on Value Perceptions of Both Buyer and Seller

2. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Categories of Competition That Influence Selling Strategies Monopoly— one supplier for many buyers. Oligopoly— a few suppliers in an unofficial alliance. Imperfect competition— many suppliers, but the customer has imperfect information about them. Buyers rely on salespeople to bring to their attention new products. Perfect competition— many suppliers, and the buyer has wide information about each. The world is moving toward a state of perfect competition, and the use of salespeople as communicators does not provide firms competitive advantages.

3. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Competitive Differentiation (People buy products that they believe are favorably different from the competition.) Hospitality firms have traditionally provided value to their corporate accounts in one of three ways. They can offer their customer a product or service of –comparable quality at a comparable price. –superior quality at a premium price. –low quality at a discount price. Neither strategy provides long-term competitive advantages.

4. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Product Complexity Simple –There is little need for customization. –Salesperson only adds cost to the product. Highly complex –There is need for customization. –Salesperson has ability to add value to the buyer as a part of the consultative sales process.

5. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Business Growth Cycle Introduction stage Growth stage Maturity stage Optimization stage

6. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Business Growth Cycle (BGC) Introduction stage— emphasis on prospecting (All sales are good sales) Growth stage— emphasis on market coverage Maturity stage— begins to be selective in what customer segments to go after Optimization stage— focus on highly selective customers providing them superior service

7. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Typical Strategies in Introduction and Growth Stages of BGC Value of sale High Med Low Need for customization Low MediumHigh Emphasis on market penetration and market coverage

8. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Typical Strategies in Maturity and Optimization Stages of BGC Value of sale High Med Low Need for customization Low MediumHigh Focus on highly selective customers providing them superior service (consultative/partnering)

9. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Business Growth Cycles Introduction stage..... Growth stage......... Maturity stage........ Optimization stage..... Transactional selling Consultative/relational Consultative selling/ partnering aspects, often involving multiple sales channel strategy

10. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Sales Process Prospecting Account Qualification Exploring Needs & Proposing Closing After Sale Service & Support

11. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Multiple Sales Channels Channel Task ProspectingQualification Exploring Closing After Sales Needs & Service/Support Proposing Sales Force Convention Services Mgr. Telesales Internet

12. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Multiple Sales Channel Strategy Value of sale High Low Need for customization Low High Internet Telemarketing Travel Agencies Wholesalers On Site Sales Force Call Centers Field Sales Force Direct Marketing Channels Sales Intermediaries “Partners” Direct Sales Channels High Low Cost per trans- action

13. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Interviewing for a Sales Job

14. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Selling Commercial Furniture Complexity of the problem Buyer motives Salesperson’s ability –use of confirming statements –demonstrating capabilities –overcoming objections –advancing the sale