Transcript Slide 1

Module Three
Understanding Buyers
Learning Objectives
1. Categorize primary types of buyers.
2. Discuss the distinguishing characteristics
of business markets.
3. List the different steps in the business-tobusiness buying process.
Learning Objectives
4. Discuss the different types of buyer needs.
5. Describe how buyers evaluate suppliers
and alternative sales offerings by using the
multiattribute model of evaluation.
6. Explain the two-factor model that buyers
use to evaluate the performance of sales
offerings and develop satisfaction.
Learning Objectives
7. Explain the different types of purchasing
decisions.
8. Describe the four communication styles and
how salespeople must adapt and flex their
own styles to maximize communication.
9. Explain the concept of buying teams and
specify the different member roles.
Key Thoughts
• Business markets operate differently than consumer
markets, and those differences affect the selling
process.
• The role of the salesperson will vary based on where
the buyer is in the buying decision process.
• Buyer’s needs may be a mix of situational, functional,
social, and knowledge needs.
• The role of the salesperson will vary based
on the type of buying decision.
• Salespeople will benefit from being
able to identify the buyer’s
communication style.
Categories of Buyers
Consumer Markets
People (Personal Use)
Firms
Business Markets
Institutions
Governments
Non-Profit Organizations
Distinguishing Characteristics
of Business Markets
•
•
•
•
•
•
Concentrated Demand
Derived Demand
Higher Levels of Demand Fluctuation
Purchasing Professionals
Multiple Buying Influences
Close Buyer-Seller Relationships
Buying Decision Process
Initiating the Relationship
Evaluation
Search
Acquisition
Determination
Selection
Recognition
Description
andofQualification
&
Proposals
of
Analysis
an
of
of
of
&
Performance Feedback
Desired
Selection
of Potential
Order
ofthe
Proposals
Characteristics
of
Need
Routine
Suppliers
Sources
and
Evaluation
Developing the Relationships
Enhancing the Relationships
Buying Decision Process
Recognition of
the Need
Search and Qualification
of Potential Sources
Selection of an
Order Routine
Determination of
Desired Characteristics
Acquisition & Analysis
of Proposals
Performance Feedback
and Evaluation
Description of
Desired Characteristics
Evaluation of Proposals
Selection of Suppliers
Needs Gap – An Example from the
Life of a College Senior
I have a job.
Desired State
Needs
Gap
Actual State
I do not have
a job.
The Needs Gap
Desired State
Produce 1,250 Units Per Day
Needs Gap
250 Units Per Day
Actual State
Produce 1,000 Units Per Day
Types of Buyer Needs
Situational Needs
I need a copier now because I have a major
project I need to complete.
Functional Needs
I need a copier that sorts and staples.
Social Needs
I need a state-of-the-art copier so I will be
recognized as of the technology-savvy people
in this company.
Psychological Needs
I need an extended warranty with a copier.
Knowledge Needs
I need comprehensive training on how to use
a copier.
Multi-Attribute Model
The base score
The weight
Assessment of
Product or Supplier
Performance (P)
Assessing the Relative
Importance of Each
Characteristic (I)
Multi-Attribute Model: an Example
P I PxI
Offer from
Company A
Compensation
8
.4
3.2
Location
3
.4
1.2
Training
7
.2
1.4
Which Job
Should I Take?
Offer from
Company B
Score
5.8
P I PxI
Compensation
3
.4
1.2
Location
9
.4
3.6
Training
8
.2
1.6
Score
6.4
Employing Buyer Evaluation Procedures
to Enhance Selling Strategies
• Modify the Product Offering Being Proposed
• Alter the Buyer’s Beliefs about the
Proposed Offering
• Alter the Buyer’s Beliefs about the
Competitor’s Offering
• Alter the Importance Weights
• Call Attention to Neglected Attributes
Complex Mix of
Business Buyer Needs
Functional
Attributes
37%
Level of Influence
On Buyers’ Satisfaction
“Must-Haves”
Psychological
Attributes
“Delighters”
Buyers’
Level of
Satisfaction
63%
Level of Influence
On Buyers’ Satisfaction
Types of Purchasing Decisions
• Straight Rebuy Buying Situation
– Routinized Response Behavior
• Modified Rebuy Buying Situation
– Limited Problem Solving
• New Task Buying Situation
– Extensive Problem Solving
Characteristics of the
Three Types of Buying Decisions
Straight Modified
Rebuy Rebuy
Newness of Problem or Need
Information Requirements
Information Search
Consideration of New Alternatives
Multiple Buying Influence
Financial Risks
Low
Minimal
Minimal
None
Very Small
Low
Medium
Moderate
Limited
Limited
Moderate
Moderate
New
Task
High
Maximum
Extensive
Extensive
Large
High
Buying Decision Types - Continuum
Straight
Rebuy
Habitual and Routine
Decision Making
Modified
Rebuy
New
Task
Extensive Consideration
and Decision Making
Communication Styles Matrix
High
Responsiveness
Expressive
Amiable
Relationship Oriented
Low
Assertiveness
Slow Paced
Fast Paced
High
Assertiveness
Task Oriented
Analytical
Driver
Low
Responsiveness
Communication Style Flexing
The process by which the salesperson adjusts
his/her communication style to fit that of the
customers in order to facilitate effective
communication.
Need
Discovery
Ask specific,
fact-finding
questions in a
systematic
manner.
Ask fact
finding
questions
leading to
what the
driver values
and rewards.
Create a
cooperative
environment
with an open
exchange of
information
and feelings.
Begin by finding
out the
Expressive’s
perception of the
situation and
vision of the
ideal outcome.
Buying Center Members
• Initiators
• Users
• Gatekeepers
• Influencers
• Deciders
• Purchasers
The roles in the
buying center work
together to affects
the outcome of the
purchase decision.
Current Developments in Purchasing
Target Pricing
Supply Chain Management
Relationship Emphasis on
Cooperation and Collaboration
Increasing Use of Information Technology
Increased Importance of Knowledge and Creativity