Distribution Back to Table of Contents. Distribution 2 Chapter 12 Distribution Selling Hospitality &...

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Chapter 12


Selling Hospitality & TourismSelling Hospitality & Tourism

Channels of DistributionChannels of Distribution


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Chapter Objectives

Explain the types of selling.

List the steps of selling.

Differentiate between features and benefits.

Define channels of distribution.

Identify indirect channels of distribution.

Discuss the Internet channels of distribution.


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Types of Selling

Selling involves identifying the needs of customers and being able to meet those needs through providing products, or goods and services.

Selling is part of promotion, one of the four Ps of the marketing mix.

Section 12.1


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Types of Selling

Two types of selling are personal selling and nonpersonal selling.

Sales promotion, publicity, and advertising are types of nonpersonal selling.

Section 12.1


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Types of Selling

Personal selling can occur in a retail store, in your own home, over the telephone, or in an office.

personal selling the type of selling that involves direct interaction between sales associates and customers

Section 12.1

Business-to-business selling is another type of selling.

business-to-business selling the type of selling whereby one business sells goods or services to another business

The Sales Process

Section 12.1

Seven Steps of Selling

ApproachDetermine

needsPresent the

productOvercomeobjections

Close thesale

Performsuggestion

sellingFollow up

1 2 3 4 5 6 7

Identify customers.Find out what the

customers want or need.

Select a product to fitthe need or want and

make a recommendation.

Answer questions oreliminate doubts abouta product or service.

Motivate the customerto action.

Present ideas foradditional product sales.

Stay in touch with thecustomer after the sale.

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The Sales Process

When presenting the product, look for buying signals.

buying signals verbal or nonverbal signs of a customer’s readiness to buy

Section 12.1


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The Sales Process

When performing suggestion selling, you may have opportunities for cross-selling and selling up.

cross-selling the method of selling the customer additional related products tied to one name

Section 12.1

selling up offering a more expensive or upgraded version of the original recommendation


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Sales-and-Service Link

Service is what distinguishes hospitality and tourism products from other products.

Selling without service is a disappointment.

Service builds customer loyalty.

Section 12.1

Sales-and-Service Link

Section 12.1

Customers Expect:

Needs to be met

Respect

Prompt and efficient service

A knowledgeable sales staff

A professional attitude from sales staff

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Selling Features and Benefits

When selling, it is important to identify an important feature and distinguishing benefit of a product or service.

feature a basic, physical, or extended attribute of a product or purchase

Section 12.1

benefit a feature advantage of a product


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What are the steps of selling?

How are sales and service linked?

What is feature-benefit selling?

1.

2.

3.

Section 12.1

12.112.1


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Channels of Distribution

After goods and services are produced or created, they must reach the customer.

A channel of distribution is the path a product takes from the producer.

Section 12.2


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A channel of distribution can be a direct channel or an indirect channel.

direct channel the path a product takes without the help of any intermediaries between the producer and consumer

Section 12.2

indirect channel the path a product takes using intermediaries between the producer and consumer


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Travel agents serve as the most familiar indirect channels of distribution.

Travel agents do not own or provide the goods and services they sell.

Travel agents act as brokers between suppliers and travelers for a fee or commission.

Section 12.2


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A consolidator and a tour operator are two other types of intermediaries.

consolidator an agent who buys unsold products in bulk from suppliers and resells the products at a discount to intermediaries or to consumers

Section 12.2

tour operator an intermediary who negotiates special rates and blocks space with transportation services, cruise lines, and hotels, and packages multiple components of a vacation for resale to the public or to another intermediary


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Internet Channels

The e-tail channel is fast, economical, and offers a channel for goods and services that can be accessed from anywhere in the world.

e-tail the sale of goods or services to the customer by means of the Internet

Section 12.2

Internet Channels

Section 12.2

Four Main Categories of Internet Channels

CompanyWeb sites

Affinitysites

Discountsites

Portalsites

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Internet Channels

To succeed, online travel Web sites must:

Section 12.2

Be easy to use

Provide good service

Offer what customers want

Add value to the experience

Online travel sales grew to $28.9 billion in 2004—and reached 29.2 million households.


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Key Elements of Selling

Getting products to the marketplace through distribution channels is the first step before sales can occur.

Selling is a process that requires a series of steps to achieve the desired result.

Adding value to an experience and demonstrating the benefits of the product’s features will help gain customers for life.

Section 12.2


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Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses.

Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service.

Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

In 2002, the travel-marketing service Tripadvisor found that most online leisure travelers spend at least a month researching and planning a trip before purchasing it.

Tracking Travel Purchases

After one month, the number of purchases is five times higher than on the day an ad is originally clicked. Online services need better tracking systems to find out which customers are returning.

Section 12.2

For more information, go to marketingseries.glencoe.com.22


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What is a channel of distribution?

What is the role of the intermediary?

What are some indirect channels of distribution?

1.

2.

3.

Section 12.2

12.212.2


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1. Explain personal selling. Personal selling is a type of selling that involves direct interaction between sales associates and customers.

1. There are seven step of selling: approach, determine needs, present the product, overcome objections, close the sale, perform suggestion selling, and follow up.

2. The key to providing quality service is going beyond simply meeting the needs of customers.

3. Benefits are feature advantages of a product. Selling benefits means matching those benefits to the needs or wants of the customer.

4.

continued

Checking Concepts

2. Identify the steps of selling.

3. Identify the key to providing quality service.

4. Discuss the role of using product benefits in the selling process.


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5. Define a direct channel of distribution.

A direct channel of distribution is the path a product takes from a producer directly to a consumer without the help of intermediaries.

5. Indirect channels of distribution are paths a product takes from producer to consumer using intermediaries. In tourism, indirect channels of distribution include travel agents, consolidators, and tour operators.

6. Internet channels of distribution include: company Web sites, affinity sites, discount sites, and portal sites.

7.

continued

Checking Concepts

6. Identify at least two indirect channels of distribution in tourism.

7. Name four types of Internet channels of distribution.


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Critical Thinking

Checking Concepts

8. Explain the characteristics of successful online travel services.

Online travel Web sites must be easy to use, provide good service, offer what the customer wants, and add value to the experience.

8.


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