1. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Selling Hospitality Chapter 5 The New World of Selling: Responding to Changing Buyer Perceptions of Value

2. Copyright © 2006 Thomson Delmar Learning All Rights Reserved In the drama of industrial progress, the spotlight of public attention which has been centered upon the creators of technical products is now being directed upon those who are responsible for the distribution of those products. (Bernard Lester, 1940, p. v; founding member of the American Marketing Association)

3. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Evolution of Personal Selling Peddler—communicates to the buyer the product’s or service’s unique features. Sells engineering—E.K. Strong (1922) The Psychology of Selling Life Insurance. New salesperson—adds value as demanded by the customer.

4. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Matching Buyers’ Perception of Value with Sales Strategy Intrinsic value buyers see the product as a commodity and place value on the lowest price. They see little value in interacting with a salesperson. Extrinsic value buyers seek solutions to complex problems. Quality product is a foundation for value. They are willing to invest time and effort (costs) with the salesperson in return for advice, customization, and problem-solving capabilities. Strategic value buyers want to create synergies that only partnerships and alliances can provide.

5. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Matching Buyers’ Perception of Value with Sales Strategy Intrinsic value buyers see the product as a commodity and place value on the lowest price. They see little value in interacting with a salesperson. Transactional selling Extrinsic value buyers seek solutions to complex problems. Quality product is a foundation for value. They are willing to invest time and effort (costs) with the salesperson in return for advice, customization, and problem-solving capabilities. Consultative selling Strategic value buyers want to create synergies that only partnerships and alliances can provide. Alliance selling

6. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Selling Process Discovery—open- versus closed-ended questions Presentation of features and benefits Overcoming objections Closing Follow-up

7. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Alliances in the News Delta Air Lines and Swissair form Global Cargo Alliance Northwest and Continental Airlines form strategic alliance to strengthen their position in a competitive global marketplace. United-Delta consider similar move. The SABRE Group, ABACUS International Holdings Create Joint Venture to Serve Asia-Pacific Travel Market: 7,300 Travel Agencies to Use Customized SABRE System ITT Sheraton and Visa U.S.A. Establish Marketing Relationship that Benefits Travelers WorldRes forms Strategic Alliance with the Pembridge Group Biztravel.com to Partner with EventSource; Alliance to Provide First Integrated Event Planning and Business Travel Solution Galileo International Teams up with ITN for Corporate Travel Solution WORLDRES and WIZCOM announce Internet alliance California Cultural Tourism Coalition Debuts Multi-Million Dollar Promotional Campaign “California, Culture’s Edge”

8. Copyright © 2006 Thomson Delmar Learning All Rights Reserved Cinderella Fable Perception of sales under the Marketing Concept