Manual on elective iii - hospitality marketing

Hospitality Marketing
Table 6: Buying Process of the Business Market
Stage Scenario
Problem recognition A new product line creates the need for a series of
training for the company’s sales people.
General need description
& product specification
Supplier selection &
proposal solicitation
Buyer identifies what the company requires in order to
have a successful training program conducted in a hotel
(e.g. food and beverage services, meeting spaces,
audio-visual equipment, sleeping room requirements,
etc.). Once the general requirements are determined,
organizational buyer will proceed to outline the specific
requirements for each item (this is called product
specification). For example, in terms of meeting
space, the buyer further specifies the need for a space
that could accommodate 25 people, with a classroom
style set up, two separate break-up rooms, etc.
Buyer looks for potential hotels to hold the training
program through various sources such as the trade
directories, internet search, advertising materials,
calling the local hotel sales people, etc.. Then, a short
list of hotels is invited to submit proposals to the buyer.
Supplier selection Buyer evaluates proposals to identify the most
appropriate hotels and negotiates for better prices and
terms.
Order-routine
specification
Buyer finalizes the product specification with the hotel
and the hotel offers the buyer a formal contract.
Performance review Buyer conducts post-purchase evaluation of the hotel’s
products and services to see if everything meets the
buyer’s specifications. Repeat purchases are likely
only if the evaluation is positive.
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