Hospitality and Tourism

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Chapter 12
Distribution
Selling Hospitality Tourism
Channels 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.

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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.

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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
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
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Seven Steps of Selling
The Sales Process
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Approach
Determineneeds
Present theproduct
Overcomeobjections
Close thesale
Performsuggestionselling
Follow up
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The Sales Process

• When presenting the product, look for buying
  signals.

buying signals verbal or nonverbal signs of a
customers readiness to buy
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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
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.

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Sales-and-Service Link
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
benefit a feature advantage of a product
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12.1

• What are the steps of selling?
• How are sales and service linked?
• What is feature-benefit selling?

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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.

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Channels of Distribution

• 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
indirect channel the path a product takes using
intermediaries between the producer and consumer
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Channels of Distribution

• 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.

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Channels of Distribution

• 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
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
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Four Main Categories of Internet Channels
Internet Channels
CompanyWeb sites
Affinitysites
Discountsites
Portalsites
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Internet Channels

• To succeed, online travel Web sites must

• 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
2004and 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 products features will help
  gain customers for life.

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Tracking Travel Purchases

• Operating an e-tail business on an electronic
  channelthe Webcan be costly, due to design,
  delivery, returns, and operating expenses.
• Though Many larger dot-com companies crashed in
  the 1990s, small stores like Harris Cyclery of
  West Newton, Massachusetts, actually increase
  sales using a basic Web site. Today, a third of
  Harriss bicycle business rides in on the Web to
  get hard-to-find parts and personal service.
• Describe an e-businesss 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.
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.
For more information, go to marketingseries.glenco
e.com.
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12.2

• What is a channel of distribution?
• What is the role of the intermediary?
• What are some indirect channels of distribution?

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Checking Concepts

1. Explain personal selling.

1. Identify the steps of selling.

1. Identify the key to providing quality service.

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

continued
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Checking Concepts

1. Define a direct channel of distribution.

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

1. Name four types of Internet channels of
   distribution.

continued
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Checking Concepts
Critical Thinking

1. Explain the characteristics of successful online
   travel services.

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