Post on 21-Mar-2016
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Understanding Buyers – How and why customers buy
Chapter 3
Understanding Buyers Starts with understanding yourself,…..and being
confident in what you are selling.Knowledge Bases (from Chapter 2): Industry Company Product Price and Promotion Service Market/Customer Competitor Technology
Adaptive Selling
Adaptive selling (Chapter 1 entails): Gathering information about each customer Observing customers’ reactions during the
sales call Being able to make rapid adjustments during
the sales process/call/presentation Tailoring the sales presentation to each
customer’s social style
Understanding Social Styles
Assertiveness Competitive Rapid movers Quick decision makers Initiative takers Time sensitive
Responsiveness Friendly Talkative Approachable Less time sensitive Slower decision makers More sensitive to others’
feelings
Social Styles Matrix
Amiable“Show concern for me and my
problems”• Supportive• Respectful• Willing• Dependable• Personable
Expressive“I like competent, imaginative
salespeople”• Personable• Stimulating• Enthusiastic• Dramatic• Inspiring
Driver“Show me bottom line results”
• Determined• Demanding• Thorough• Decisive• Efficient
Analytical“What I need are practical suggestions”
• Industrious• Persistent• Serious• Vigilant• Orderly
RES
PON
SIVE
NES
S
ASSERTIVENESS
Low
High
HighLow
In-Class Exercise: I’ll Cook His Goose!
Selling From TheCustomer’s Perspective Three conditions constitute a quality buying
experience:1. Customers believe that salespeople’s
assessments of their needs and expectations are good (from quality communication)
2. Customers experience fulfillment of these needs on a long-term basis due to the salespeople and the sales support team
3. When customer needs change suddenly, salespeople respond by making every effort to meet new needs
Selling to Prospects’Needs and Wants – a starting point The goal is to reach a common understanding
between buyer and seller This can only happen through the process of
disclosure – the giving and taking of information Do we share any background experiences? Are our language skills, attitudes, and beliefs
similar or dissimilar? What assumptions have we made about each
other based on stereotypes?
Uncovering Needs and Wants
Salespeople must: Determine what will motivate the prospect to
act (not necessarily a purchase) Understand the goal orientation of the
prospect Assess and adapt to the style of the prospect
The Needs Gap – an example
Actual State
Desired StateProduce 1,250 Units Per Day
Produce 1,000 Units Per Day
Needs Gap
250 Units Per Day
Types of Buyer Needs
Situational Needs I need a copier now because I have a major project I need to complete.
I need a copier that sorts and staples.
I need a state-of-the-art copier so I will be recognized as of the technology-savvy people in this company.
I need an extended warranty with a copier. I need comprehensive training on how to use a copier.
Functional Needs
Social Needs
Psychological Needs
Knowledge Needs
Complex Mix of Business Buyer Needs
Buyers’Level of
Satisfaction
Psychological Attributes“Delighters”
Functional Attributes
“Must-Haves”
63%Level of Influence
On Buyers’ Satisfaction
37%Level of Influence
On Buyers’ Satisfaction
Categories of Buyers
Manufacturers
Institutions/Governments
Wholesalers, Retailers
Non-Profit Organizations
Business Markets
People (Personal Use)Consumer Markets
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
Recognition ofthe Need
Determination of Desired Characteristics
Description ofDesired Characteristics
Search and Qualificationof Potential Sources
Acquisition & Analysisof Proposals
Evaluation of ProposalsSelection of Suppliers
Selection of anOrder Routine
Performance Feedback and Evaluation
Multi-Attribute Model
Assessment of Product or Supplier Performance (P)
Assessing the Relative Importance of Each Characteristic (I)
The base score
The weight
Chapter Case – p. 75
Example of the Multi-Attribute Model Process
Vinyl Fabric Nylon Velvet Fabric
CharacteristicPerformance
ScoreImportance
Weight PxIPerformance
ScoreImportance
Weight PxIComfort
5 9 45 8 9 72Durability
7 8 56 8 8 64Guarantee
7 8 56 8 8 64Price
10 6 60 1 6 60Evaluation
Score 217 204
Perceived Risk
In many sales situations, the most important perception to be dealt with is risk
Salespeople must provide evidence that their solutions will work, reducing perceived risk of the buyers decisions
Five Types of Risk inPurchasing Decisions1. Financial2. Social3. Psychological4. Performance5. Physical• Understanding these are important for
effective salespeople
Characteristics of theThree Types of Buying Decisions
Straight Rebuy
Modified Rebuy
New Task
Newness of Problem or NeedInformation Requirements
Information SearchConsideration of New Alternatives
Multiple Buying InfluenceFinancial Risks
LowMinimalMinimal
NoneVery Small
Low
MediumModerateLimitedLimited
ModerateModerate
HighMaximumExtensiveExtensive
LargeHigh
Buying Center Members
• Initiators• Users• Gatekeepers• Influencers• Deciders• Purchasers
The roles in the buying center work together to affect
the outcome of the purchase decision.
Individual Factors Affecting the Buying Center