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.
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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.
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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.
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Setting the Stage
Understanding the Buyer’s Needs
and Dreams is the Key to Success
1. To what did David Laube contribute
his success?
2. What is, and more importantly, why
does David hold a “discovery”
session with his clients?
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Categories of Buyers
Consumer Markets
People (Personal Use)
Firms
Institutions
Business Markets
Governments
Non-Profit Organizations
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Distinguishing Characteristics of
Business Markets
•
•
•
•
•
•
Concentrated Demand
Derived Demand
Higher Levels of Demand Fluctuation
Purchasing Professionals
Multiple Buying Influences
Close Buyer-Seller Relationships
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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.
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
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LaForge Avila
Schwepker Jr. Williams
The Needs Gap
Desired State
Produce 1,250 Units Per Day
Needs Gap
250 Units Per Day
Actual State
Professional Selling:
A Trust-Based Approach
Produce 1,000 Units Per Day
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Types of Buyer Needs
•
•
•
•
•
Professional Selling:
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Situational Needs
Functional Needs
Social Needs
Psychological Needs
Knowledge Needs
Module 3:
Understanding Buyers
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Schwepker Jr. Williams
Multi-Attribute Model
The base score
The weight
Professional Selling:
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Assessment of
Product or Supplier
Performance (P)
Assessing the Relative
Importance of Each
Characteristic (I)
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Multi-Attribute Model: an Example
Which Job Should I Take?
P I PxI
Company A
Compensation
8
.4
3.2
Location
3
.4
1.2
Training
7
.2
1.4
Score
5.8
P I PxI
Company B
Professional Selling:
A Trust-Based Approach
Compensation
3
Location
9
.4
3.6
Training
8
.2
1.6
Module 3:
Understanding Buyers
.4
1.2
Score
6.4
Ingram
LaForge Avila
Schwepker Jr. Williams
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
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Complex Mix of Business Buyer Needs
Functional
Attributes
37%
Level of Influence
On Buyers’ Satisfaction
“Must-Haves”
Psychological
Attributes
“Delighters”
Professional Selling:
A Trust-Based Approach
Buyers’
Level of
Satisfaction
63%
Level of Influence
On Buyers’ Satisfaction
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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
Professional Selling:
A Trust-Based Approach
Low
Minimal
Minimal
None
Very Small
Low
Module 3:
Understanding Buyers
Medium
Moderate
Limited
Limited
Moderate
Moderate
New
Task
High
Maximum
Extensive
Extensive
Large
High
Ingram
LaForge Avila
Schwepker Jr. Williams
Buying Decision Types - Continuum
Straight
Rebuy
Modified
Rebuy
Habitual and Routine
Decision Making
Professional Selling:
A Trust-Based Approach
New
Task
Extensive Consideration
and Decision Making
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Communication Styles Matrix
High
Responsiveness
Amiable
Expressive
Relationship Oriented
Low
Assertiveness
Slow Paced
Analytical
Fast Paced
Task Oriented
High
Assertiveness
Driver
Low
Responsiveness
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
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.
Professional Selling:
A Trust-Based Approach
Ask fact
finding
questions
leading to
what the
driver values
and rewards.
Module 3:
Understanding Buyers
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.
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LaForge Avila
Schwepker Jr. Williams
Buying Center Members
• Initiators
• Users
• Gatekeepers
• Influencers
• Deciders
The roles in the
buying center work
together to affects
the outcome of the
purchase decision.
• Purchasers
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams
Current Developments in Purchasing
Increasing Use of Information Technology
Relationship Emphasis on Cooperation
and Collaboration
Supply Chain Management
Target Pricing
Increased Importance of Knowledge and Creativity
Professional Selling:
A Trust-Based Approach
Module 3:
Understanding Buyers
Ingram
LaForge Avila
Schwepker Jr. Williams