hospitality sales and marketing situational selling chapter six 1

Hospitality Sales and Hospitality Sales and MarketingMarketing

Situational SellingSituational Selling

Chapter sixChapter six

11


All buyers have different perceptions of All buyers have different perceptions of valuevalue

Sellers must use different selling strategies Sellers must use different selling strategies and tactics and be able to tell which ones and tactics and be able to tell which ones will be appropriate in different buying will be appropriate in different buying situationssituations

The “situation” to be addressed reflects the The “situation” to be addressed reflects the value as perceived by both buyer and sellervalue as perceived by both buyer and seller

22


Both buyer and seller must answer a series of Both buyer and seller must answer a series of questions to arrive at an assessment of valuequestions to arrive at an assessment of value

The assessment drives the selling strategies for The assessment drives the selling strategies for each each “buying situation”“buying situation”

Situation…Situation…1.1. Is the industry in a state of perfect or imperfect Is the industry in a state of perfect or imperfect

competition?competition?2.2. Is there competitive differentiation?Is there competitive differentiation?3.3. Does the exchange involve complex or simple Does the exchange involve complex or simple

products?products?4.4. In what stage of the product life cycle is the property?In what stage of the product life cycle is the property?

33


With perceptions in hand we address each With perceptions in hand we address each situation with a few basic strategies and situation with a few basic strategies and tacticstactics– StrategiesStrategies are the overall plans to help reach a are the overall plans to help reach a

goalgoal– TacticsTactics are things you can do that work toward are things you can do that work toward

reaching the goal…face to face behaviorreaching the goal…face to face behavior

44


Situation #1: Perfect or imperfect Situation #1: Perfect or imperfect competitioncompetition– Several categories of competitionSeveral categories of competition

MonopolyMonopoly…one supplier…one supplier OligopolyOligopoly…a few suppliers in an unofficial alliance…a few suppliers in an unofficial alliance ImperfectImperfect competitioncompetition…several suppliers but …several suppliers but

customers have limited access to product offeringscustomers have limited access to product offerings PerfectPerfect c competitionompetition…several suppliers and …several suppliers and

customers have wide access to information about customers have wide access to information about their product offeringstheir product offerings

55


Situation #2: Competitive differentiationSituation #2: Competitive differentiation– People generally buy on price when products People generally buy on price when products

have similar qualityhave similar quality– Segment continually fights off commoditizationSegment continually fights off commoditization– Low cost “go to market” selling strategies are Low cost “go to market” selling strategies are

employedemployed

66


Situation #3: Simple versus complex Situation #3: Simple versus complex products and servicesproducts and services– Simple products tend to compete on priceSimple products tend to compete on price– Complex products attempt to compete on value Complex products attempt to compete on value

through relationships and product/service through relationships and product/service customizationcustomization

77


Situation #4: Product Life Cycle (PLC)Situation #4: Product Life Cycle (PLC)– Introduction stageIntroduction stage– Growth stageGrowth stage– Maturity stageMaturity stage– Optimization (Decline) stageOptimization (Decline) stage

88


Each stage requires a property to adjust the way it Each stage requires a property to adjust the way it “goes to market”, or simply said, adjust its selling “goes to market”, or simply said, adjust its selling strategiesstrategies– Introduction stageIntroduction stage

Production is key. All sales are good salesProduction is key. All sales are good sales Key challenge is getting the product establishedKey challenge is getting the product established

– Growth stageGrowth stage Increase prospect coverage. More sales people employed Increase prospect coverage. More sales people employed

focusing on more market segmentsfocusing on more market segments Sales (and profits) grow rapidlySales (and profits) grow rapidly Key challenge is driving market shareKey challenge is driving market share

99


Each stage requires a property to adjust the way it Each stage requires a property to adjust the way it “goes to market”, adjust its selling strategies“goes to market”, adjust its selling strategies– Maturity stageMaturity stage

Begin to launch new products/servicesBegin to launch new products/services Begin defining most worthwhile customer segmentsBegin defining most worthwhile customer segments Begin to discount to protect shareBegin to discount to protect share Key challenge is preventing obsolescence or the decline stageKey challenge is preventing obsolescence or the decline stage

– Optimization (or decline) stageOptimization (or decline) stage Begin to pursue targeted business…more narrow the focus…Begin to pursue targeted business…more narrow the focus… Optimize returns by creating lifetime customersOptimize returns by creating lifetime customers Key challenge is how to develop and implement strategies that Key challenge is how to develop and implement strategies that

deliver value added solutions to targeted customersdeliver value added solutions to targeted customers

1010

Situational SellingSituational Selling Basic value buyers areBasic value buyers are

– IntrinsicIntrinsic– ExtrinsicExtrinsic– StrategicStrategic

Basic selling strategies areBasic selling strategies are– TransactionalTransactional– ConsultativeConsultative– AllianceAlliance– Multiple channel selling strategyMultiple channel selling strategy

Selling tactics are face to face actionsSelling tactics are face to face actions– Prospecting tactic…law of large numbersProspecting tactic…law of large numbers– Negotiation tactic…can be win/lose or win/winNegotiation tactic…can be win/lose or win/win– Relationship tactic…problem solving “co-create solutions”Relationship tactic…problem solving “co-create solutions”– Partnership tactic…Lets grow and change together (MPI example of Partnership tactic…Lets grow and change together (MPI example of

streaming a meeting to a large audience “outside the room”streaming a meeting to a large audience “outside the room”

1111


Selling strategies are implemented to two Selling strategies are implemented to two waysways– Individual approachIndividual approach– Team approachTeam approach

Ad hoc teamsAd hoc teams Formal teamsFormal teams

1212

hospitality sales and marketing situational selling chapter six 1

Documents