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Selling Hospitality
Chapter 6
Situational Selling:
Selling Approaches Depend on Value
Perceptions of Both Buyer and Seller
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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 the use of
salespeople as communicators does not provide firms competitive
advantages.
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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.
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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.
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Business Growth Cycle
Introduction stage
Growth stage
Maturity stage
Optimization stage
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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
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Typical Strategies in Introduction
and Growth Stages of BGC
High
Value
of
Med
sale
Emphasis on market penetration and market coverage
Low
Low
Medium
Need for customization
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High
Typical Strategies in Maturity and
Optimization Stages of BGC
High
Focus on highly selective
customers providing
them superior service
(consultative/partnering)
Value
Med
of
sale
Low
Low
Medium
Need for customization
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High
Business Growth Cycles
Introduction stage . . . . .
Growth stage . . . . . . . . .
Maturity stage . . . . . . . .
Optimization stage . . . . .
Transactional selling
Transactional selling
Consultative/relational
Consultative selling/
partnering aspects, often
involving multiple sales
channel strategy
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Sales Process
Prospecting
Account
Qualification
Exploring
Needs &
Proposing
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Closing
After Sale
Service &
Support
Multiple Sales Channels
Task
Channel
Prospecting
Qualification
Exploring
Needs &
Proposing
Closing
Sales
Force
Convention
Services Mgr.
Telesales
Internet
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After Sales
Service/Support
Multiple Sales Channel Strategy
Field
Sales Force
High
On Site
Sales Force
Wholesalers
Value
of
sale
Direct Sales
Channels
Travel Agencies
Call Centers
Internet
Cost
per
transaction
Sales Intermediaries
“Partners”
Telemarketing
Low
High
Low
Direct Marketing
Channels
Low
High
Need for customization
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Interviewing for a Sales Job
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Selling Commercial Furniture
Complexity of the problem
Buyer motives
Salesperson’s ability
–
–
–
–
use of confirming statements
demonstrating capabilities
overcoming objections
advancing the sale
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