Selling Hospitality Chapter 6 Situational Selling Selling Approaches

Categories of Competition That Influence Selling Strategies Monopoly—one supplier for many buyers. Oligopoly—a few

Competitive Differentiation (People buy products that they believe are favorably different from the competition.

Product Complexity Simple – There is little need for customization. – Salesperson only adds

Business Growth Cycle Introduction stage Growth stage Maturity stage Optimization stage Copyright © 2006

Business Growth Cycle (BGC) Introduction stage—emphasis on prospecting (All sales are good sales) Growth

Typical Strategies in Introduction and Growth Stages of BGC High Value of Med sale

Typical Strategies in Maturity and Optimization Stages of BGC High Focus on highly selective

Business Growth Cycles Introduction stage. . . Growth stage. . Maturity stage. . .

Sales Process Prospecting Account Qualification Exploring Needs & Proposing Copyright © 2006 Thomson Delmar

Multiple Sales Channels Task Channel Prospecting Qualification Exploring Needs & Proposing Closing Sales Force

Multiple Sales Channel Strategy Field Sales Force High On Site Sales Force Wholesalers Value

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

Selling Commercial Furniture Complexity of the problem Buyer motives Salesperson’s ability – use of

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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 Copyrightas © 2006 Thomson Delmar Learning does not provide the use of salespeople communicators All Rights Reserved firms competitive advantages.

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. 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. 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 Copyright © 2006 Thomson Delmar Learning All Rights Reserved

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

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

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

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

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