1. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Selling Hospitality Chapter 8 Phase Two— Approaching the Buyer

2. Copyright © 2006 Thomson Delmar Learning All Rights Reserved The Buying/Selling Process The Pre-Negotiation Process Phase 1—Pre-Negotiation Strategy –Understanding Negotiations –Prospecting –Pre-call Preparation Phase 2—Negotiation Process Strategy –Approaching the Buyer (Chapter 8) –Investigating Needs (Chapter 9) –Demonstrating Capability (Chapter 10) –Negotiating Concerns (Chapter 11) –Gaining Commitment (Chapter 12)

3. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Evolving Customer Status Converting –suspects (or leads) into –prospects into –customers

4. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Salespeople Must Be Highly Selective in How They Use Their Time Evolving Buyer Status Probability of Becoming a Customer Type of Communication Lead Generation Suspects 10% to 29% 30% to 49% Basic direct mail 1.Customized direct mail 2.Proposals to RFPs 3.Telephone Sales CallProspects50% to 69%1st Personal sales call

5. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Use Time Wisely Stop calling on people who are not likely to evolve to profitable customers.

6. Copyright © 2006 Thomson Delmar Learning All Rights Reserved A Qualified Prospect A qualified prospect has the –authority to purchase or can influence the purchase. –means or ability to purchase. –need to purchase. –interest in purchasing the product or service.

7. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Multicall Sales Session 1 st appointment—Establish rapport; investigate needs 2 nd appointment—Demonstrate capability

8. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Multicall Sales Session 1 st appointment—Establish rapport; investigate needs –50% to 69% probability 2 nd appointment—Demonstrate capability –reserve for 70% to 89% probability

9. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Gaining a Face-to-Face Appointment by Phone Direct mail, with telephone follow-up Introduction –identification –lead-in follow-up to direct mail a third party reference a statement of a known problem in prospect’s industry the inactive account approach—“we haven’t heard from you in awhile” –interest-capturing statement –stating the purpose of the call and asking for an appointment –handling objections or resistance over the phone

10. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Leaving a Message on Voice-Mail Use pleasant voice—smile when speaking. Use a referral’s name if possible. Give a sound reason for the person to call back—usually a benefit. Consider setting a date and time at which you will call back.

11. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Face-to-Face Appointments On-property (your property) — site visit Off-property

12. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Face-to-Face Appointments 1 st meeting –Establish rapport. –Gain prospect’s attention. –Investigate needs. 2 nd meeting –Demonstrate capabilities. –Gain commitment. Without an effective approach, there may be little chance for advancing the sale.

13. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Building Rapport According to Manning and Reese (1997) –competence –propriety, politeness –trustworthiness According to Marks (1997) –appearance –greetings –posture –eye contact –etiquette

14. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Building Rapport Social or small talk –topics –source –how much?