Understanding Buyers Module Three. IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A...

Understanding BuyersUnderstanding Buyers

Module Three

Ingram LaForge Avila

Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach

Module 3:Understanding Buyers

Learning ObjectivesLearning Objectives

1. Categorize primary types of buyers.

2. Discuss the distinguishing characteristics of business markets.

3. List the different steps in the business-to-business buying process.





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.





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.




Setting the StageSetting the Stage

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?

Understanding the Buyer’s Needs and Dreams is the Key to Success




Categories of BuyersCategories of Buyers

FirmsFirms

InstitutionsInstitutions

GovernmentsGovernments

Non-Profit OrganizationsNon-Profit Organizations

Business Markets

People (Personal Use)People (Personal Use)Consumer Markets




Distinguishing Characteristics of Business Markets

Distinguishing Characteristics of Business Markets

• Concentrated Demand• Derived Demand• Higher Levels of Demand Fluctuation• Purchasing Professionals• Multiple Buying Influences• Close Buyer-Seller Relationships




Recognition ofthe Need


Description ofDesired Characteristics


Determination of Desired Characteristics

Determination of Desired CharacteristicsSearch and Qualification

of Potential SourcesSearch and Qualification

of Potential SourcesAcquisition & Analysis

of ProposalsAcquisition & Analysis

of ProposalsEvaluation of Proposals &

Selection of SuppliersEvaluation of Proposals &

Selection of SuppliersSelection of anOrder Routine

Selection of anOrder RoutinePerformance Feedback and Evaluation

Performance Feedback and Evaluation

Buying Decision ProcessBuying Decision Process

Initiating the RelationshipInitiating the Relationship

Developing the RelationshipsDeveloping the Relationships

Enhancing the RelationshipsEnhancing the Relationships




Buying Decision ProcessBuying Decision Process







Search and Qualificationof Potential Sources

Search and Qualificationof Potential Sources

Acquisition & Analysisof Proposals

Acquisition & Analysisof Proposals

Evaluation of ProposalsSelection of Suppliers

Evaluation of ProposalsSelection of Suppliers

Selection of anOrder Routine

Selection of anOrder Routine






Needs Gap – An Example from theLife of a College Senior

Needs Gap – An Example from theLife of a College Senior

Actual State

Desired State

NeedsGap

NeedsGap

I have a job.

I do not havea job.




The Needs GapThe Needs Gap

Actual State

Desired StateProduce 1,250 Units Per Day

Produce 1,000 Units Per Day

Needs Gap

250 Units Per Day

Needs Gap

250 Units Per Day




Types of Buyer NeedsTypes of Buyer Needs

• Situational Needs• Functional Needs• Social Needs• Psychological Needs• Knowledge Needs




Multi-Attribute ModelMulti-Attribute Model

Assessment of Product or Supplier

Performance (P)

Assessing the Relative Importance of Each

Characteristic (I)

The base scoreThe base score

The weightThe weight




Multi-Attribute Model: an ExampleMulti-Attribute Model: an Example

Company A

Compensation

Location

Training

8 .4 3.2

3 .4 1.2

7 .2 1.4

P I PxI

Score5.8

Company B

Compensation

Location

Training

3 .4 1.2

9 .4 3.6

8 .2 1.6

P I PxI

Score6.4

Which Job Should I Take?




Employing Buyer Evaluation Procedures to Enhance Selling Strategies

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 NeedsComplex Mix of Business Buyer Needs

Buyers’Level of

Satisfaction

Psychological Attributes“Delighters”“Delighters”

Functional Attributes

“Must-Haves”“Must-Haves”

63%Level of Influence

On Buyers’ Satisfaction

37%Level of Influence

On Buyers’ Satisfaction




Types of Purchasing DecisionsTypes 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 theThree Types of Buying Decisions

Characteristics of theThree Types of Buying Decisions

Straight Rebuy

Modified Rebuy

New Task

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

High

Maximum

Extensive

Extensive

Large

High




Buying Decision Types - ContinuumBuying Decision Types - Continuum

Straight Rebuy

Modified Rebuy

New Task

Habitual and Routine Decision Making

Extensive Consideration and Decision Making




Communication Styles MatrixCommunication Styles Matrix

Low Assertiveness

High Assertiveness

Low Responsiveness

High Responsiveness

AnalyticalAnalytical DriverDriver

AmiableAmiable ExpressiveExpressive

Slow PacedSlow Paced Fast PacedFast Paced

Relationship OrientedRelationship Oriented

Task OrientedTask Oriented




Communication Style FlexingCommunication 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 MembersBuying 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 PurchasingCurrent 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

Understanding Buyers Module Three. IngramLaForgeAvila Schwepker Jr. Williams Professional Selling: A...

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