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Selling Hospitality. Chapter 6 Situational Selling: Selling Approaches Depend on Value Perceptions of Both Buyer and Seller. Categories of Competition That Influence Selling Strategies. Monopoly— one supplier for many buyers. Oligopoly— a few suppliers in an unofficial alliance.
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Selling Hospitality Chapter 6 Situational Selling:Selling Approaches Depend on Value Perceptions of Both Buyer and Seller
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.
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.
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.
Business Growth Cycle • Introduction stage • Growth stage • Maturity stage • Optimization stage
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
Typical Strategies in Introduction and Growth Stages of BGC High Med Low Value of sale Emphasis on market penetration and market coverage Low Medium High Need for customization
Typical Strategies in Maturity and Optimization Stages of BGC High Med Low Focus on highly selective customers providing them superior service (consultative/partnering) Value of sale Low Medium High Need for customization
Introduction stage . . . . . Growth stage . . . . . . . . . Maturity stage . . . . . . . . Optimization stage . . . . . Transactional selling Transactional selling Consultative/relational Consultative selling/ partnering aspects, often involving multiple sales channel strategy Business Growth Cycles
Sales Process Exploring Needs & Proposing After Sale Service & Support Account Qualification Prospecting Closing
Multiple Sales Channels Prospecting Qualification Exploring Closing After Sales Needs & Service/Support Proposing Task Channel Sales Force Convention Services Mgr. Telesales Internet
Multiple Sales Channel Strategy Field Sales Force High Low High Low On Site Sales Force Cost per trans- action Wholesalers Direct Sales Channels Travel Agencies Value of sale Call Centers Telemarketing Sales Intermediaries “Partners” Internet Direct Marketing Channels Low High Need for customization
Selling Commercial Furniture • Complexity of the problem • Buyer motives • Salesperson’s ability • use of confirming statements • demonstrating capabilities • overcoming objections • advancing the sale