3Understanding
Buyers
3Learning Objectives
Categorize primary types of buyers.Discuss the distinguishing characteristics of business markets. List the different steps in the business-to-business buying process.Discuss the different types of buyer needs.
L 1
L 2
L 3
L 4
3Learning Objectives
Describe how buyers evaluate suppliers and alternative sales offerings by using the multi-attribute model of evaluation.Explain the two-factor model that buyers use to evaluate the performance of sales offerings and develop satisfaction.Explain the different types of purchasing decisions.
L 6
L 5
L 7
3Learning Objectives
Describe the four communication styles and how salespeople must adapt and flex their own styles to maximize communication. Explain the concept of buying teams and specify the different member roles.Identify current developments in purchasing.
L 8
L 9
L 10
3Categories of Buyers
FirmsInstitutions Governments
Business Markets
Consumer Markets
3
ConsumerComputer Market
ComputersSuppliers
ComputerComponent
Suppliers
Manufacturing EquipmentSuppliers
Office ConsumableSuppliers
Labor, Financial, Other Resources
Peripheral Suppliers
Computer Consumable
Suppliers
Distinguishing Characteristics of Business Markets
• _______________ Demand• ____________ Demand• Higher Levels of Demand Fluctuation• Purchasing Professionals• Multiple Buying Influences• Close Buyer-Seller
Relationships
3Recognition of
the Need
Description ofDesired Characteristics
Determination of Desired Characteristics
Search and Qualificationof Potential Sources
Acquisition & Analysisof Proposals
Evaluation of Proposals &Selection of Suppliers
Performance Feedback and Evaluation
Buying Decision Process
________________________
_______________________
_______________________
3Needs Gap – An Example from the
Life of a College Senior
Actual State
Desired State
____________
I have a job.
I do not havea job.
Career ServicesProfessional NetworkingCommitment to LearningExtra Curricular Activity
3The Needs Gap
Actual State
Desired StateProduce 1,250 Units Per Day
Produce 1,000 Units Per Day
Needs Gap250 Units Per Day
3Types of Buyer Needs
___________ Needs I need a copier now because I have a majorproject 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 a technology-savvy person.
I need an extended warranty with a copier. I need comprehensive training on how to use a copier.
Functional Needs
________ Needs
Psychological Needs
___________ Needs
3Buyer Needs and
Benefit-Based Solutions
3Organizational vs. Individual Needs
3Ethical Dilemma
3Procedures for Evaluating
Suppliers and Products
RFP: a formdevelopedby firms and distributed to qualifiedpotentialsuppliers that help suppliers develop and submit solution proposals.
Descriptive Rating
3Procedures for Evaluating
Suppliers and Products
Performance Score Rating
3Procedures for Evaluating
Suppliers and Products
Multiattribute Model
3Employing 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• Alter the __________
__________• Call Attention to
Neglected Attributes
Competitive Depositioning: providing information to evidence a more accurate pictureof a competitor’s attributes or qualities.
3Employing 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.”
3Postpurchase Evaluation and the
Formation of Satisfaction
3Types of Purchasing Decisions
Electronic Data Interchange (EDI): Transfer of data electronically between two computer systems.
3Buying Decision Types
3Understanding Communication Styles
3Communication Styles Matrix
3Communication Style Flexing
The process by which the salesperson __________ his/her communication style to fit that of the customers in order to_______________communication.
3Buying Teams
• Initiators – individuals who identify a need.
• ____________ – Individuals who guide the buying decision process by making recommendations and expressing preferences.
• Users – Individuals who will actually use the productbeing purchased.The roles in
the buying center work together to affects the outcome of the purchase decision.
Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people form different departments throughout the organization.
3Buying Teams
• 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.
• ___________ – Individualswho are in the position tocontrol the flow of information to and betweenvendors and other buyingteam members.
Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people form different departments throughout the organization.
3Current Developments in Purchasing
Increasing Use of Information Technology
Relationship Emphasis on Cooperation and Collaboration
______________________
________________
Increased Importance of Knowledge and Creativity
Increased Outsourcing
3Ethical Dilemma
3Role Play