3
Understanding
Buyers
Learning Objectives
3
L 1 Categorize primary types of buyers.
L
Discuss the distinguishing characteristics
2 of business markets.
the different steps in the business-toL 3 List
business buying process.
L
Discuss the different types of buyer
4 needs.
Learning Objectives
3
L
Describe how buyers evaluate suppliers
5 and alternative sales offerings by using
the multi-attribute model of evaluation.
L
Explain the two-factor model that buyers
6 use to evaluate the performance of sales
offerings and develop satisfaction.
L
Explain the different types of purchasing
7 decisions.
Learning Objectives
3
L
Describe the four communication styles
and how salespeople must adapt and flex
8 their own styles to maximize
communication.
L
Explain the concept of buying teams and
9 specify the different member roles.
L
Identify current developments in
10 purchasing.
Categories of Buyers
3
Consumer
Markets
Business Markets
Institutions
Governments
Firms
Distinguishing Characteristics
of Business Markets
•
•
•
•
•
•
_______________ Demand
____________ Demand
Higher Levels of Demand Fluctuation
Purchasing Professionals
Multiple Buying Influences
Computers
Close Buyer-Seller
Suppliers
Relationships
Consumer
Computer Market
3
Computer
Component
Suppliers
Manufacturing
Equipment
Suppliers
Office Consumable
Suppliers
Peripheral
Suppliers
Computer
Consumable
Suppliers
Labor, Financial,
Other Resources
Buying Decision Process
Recognition of
the Need
Description of
Desired Characteristics
________________________
Determination of
Desired Characteristics
Search and Qualification
of Potential Sources
_______________________
Acquisition & Analysis
of Proposals
Evaluation of Proposals &
Selection of Suppliers
Performance Feedback
and Evaluation
_______________________
3
Needs Gap – An Example from the
Life of a College Senior
3
I have a job.
Desired State
______
______
Actual State
I do not have
a job.
Career Services
Professional Networking
Commitment to Learning
Extra Curricular Activity
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
3
Types of Buyer Needs
___________ 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.
________ Needs
I need a state-of-the-art copier so I will be
recognized as a technology-savvy person.
Psychological Needs I need an extended warranty with a copier.
___________ Needs I need comprehensive training on how to use
a copier.
3
Buyer Needs and
Benefit-Based Solutions
3
Organizational vs. Individual Needs
3
Ethical Dilemma
3
Procedures for Evaluating
Suppliers and Products
Descriptive Rating
RFP:
a form
developed
by firms and
distributed to
qualified
potential
suppliers that help
suppliers develop
and submit solution
proposals.
3
Procedures for Evaluating
Suppliers and Products
Performance Score Rating
3
Procedures for Evaluating
Suppliers and Products
Multiattribute Model
3
Employing Buyer Evaluation Procedures to
Enhance Selling Strategies
• _________ the Product Offering Being Proposed
• Alter the Buyer’s Beliefs about the
Proposed Offering
• Alter the Buyer’s Beliefs about the Competitor’s
Offering
Competitive
Depositioning:
providing
information to
evidence a more
accurate picture
of a competitor’s
attributes or
qualities.
• Alter the __________
__________
• Call Attention to
Neglected Attributes
3
Employing Buyer Evaluation Procedures to
Enhance Selling Strategies
• “We’ve added unlimited texting to the corporate calling plan we
are proposing”
• “While they may look heavy, our phones actually weighs less
than 3 ounces.”
• “As you can see from this independent study, the batteries on
our phones provide greater talk-time than any others in the
market.”
• “Screen size is important,
but only if the battery is
strong enough to keep the
phone working when needed.”
• “Our phones are made from
recycled material.”
3
Postpurchase Evaluation and the
Formation of Satisfaction
3
Types of Purchasing Decisions
Electronic Data
Interchange (EDI):
Transfer of data
electronically
between two
computer systems.
3
Buying Decision Types
3
Understanding Communication Styles
3
Communication Styles Matrix
3
Communication Style Flexing
The process by which the salesperson __________
his/her communication style to fit that of the
customers in order to
_______________
communication.
3
Buying Teams
Teams of individuals in organizations that incorporate
the expertise and multiple buying influences of people
form different departments throughout the organization.
• Initiators – individuals who identify a need.
• ____________ – Individuals who guide the buying
decision process by making recommendations and
expressing preferences.
• Users – Individuals who
The roles in
the buying center
work together to
affects the outcome
of the purchase
decision.
will actually use the product
being purchased.
3
Buying Teams
Teams of individuals in organizations that incorporate
the expertise and multiple buying influences of people
form different departments throughout the organization.
• Deciders –
Individuals who have the ultimate responsibility of
determining which product or service will be purchased.
• Purchasers – Individuals who negotiate the final terms of the
purchase and execute the final purchase.
• ___________ – Individuals
who are in the position to
control the flow of
information to and between
vendors and other buying
team members.
3
Current Developments in Purchasing
3
Increasing Use of Information Technology
______________________
Increased Outsourcing
________________
Increased Importance of
Knowledge and Creativity
Relationship Emphasis on Cooperation and Collaboration
Ethical Dilemma
3
Role Play
3