3 Understanding BuyersStarts with understanding yourself,…..and being confident in what you are selling.Knowledge Bases (from Chapter 2):IndustryCompanyProductPrice and PromotionServiceMarket/CustomerCompetitorTechnology
4 Adaptive Selling Adaptive selling (Chapter 1) entails: Gathering information about each customerObserving customers’ reactions during the sales callBeing able to make rapid adjustments during the sales process/call/presentationTailoring the sales presentation to each customer’s social style
5 Understanding Social Styles AssertivenessCompetitiveRapid moversQuick decision makersInitiative takersTime sensitiveResponsivenessFriendlyTalkativeApproachableLess time sensitiveSlower decision makersMore sensitive to others’ feelings
6 Understanding Social Styles Understand and know yourself and your prospect’s dominant personality type.
7 Social Styles Matrix “Show concern for me and my problems” Amiable SupportiveRespectfulWillingDependablePersonableExpressive“I like competent, imaginative salespeople”StimulatingEnthusiasticDramaticInspiringDriver“Show me bottom line results”DeterminedDemandingThoroughDecisiveEfficientAnalytical“What I need are practical suggestions”IndustriousPersistentSeriousVigilantOrderlyRESPONSIVENESSASSERTIVENESSLowHigh
9 In-Class Exercise: What Makes Him so Successful?
10 Selling From The Customer’s Perspective Three conditions constitute a quality buying experience:Customers believe that salespeople’s assessments of their needs and expectations are good (from quality communication)Customers experience fulfillment of these needs on a long-term basis due to the salesperson and the sales support teamWhen customer needs change suddenly, salespeople respond by making every effort to meet new needs
11 Selling to Prospects’ Needs and Wants – a starting point The goal is to reach a common understanding between buyer and sellerThis can only happen through the process of disclosure – the giving and taking of informationDo 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?
12 Uncovering Needs and Wants Salespeople must:Determine what will motivate the prospect to act (not necessarily a purchase)Understand the goal orientation of the prospectAssess and adapt to the style of the prospect
13 Types of Buyer Needs Situational Needs Functional Needs Social 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.Situational NeedsFunctional NeedsSocial NeedsPsychological NeedsKnowledge Needs
14 Complex Mix of Business Buyer Needs Functional Attributes37%Level of InfluenceOn Buyers’ Satisfaction“Must-Haves”Buyers’Level ofSatisfactionPsychological Attributes63%Level of InfluenceOn Buyers’ Satisfaction“Delighters”
15 Categories of Buyers Consumer Markets Business Markets People (Personal Use)ManufacturersInstitutions/GovernmentsWholesalers, RetailersNon-Profit OrganizationsBusiness Markets
16 Distinguishing Characteristics of Business Markets Concentrated DemandDerived DemandHigher Levels of Demand FluctuationAcceleration PrinciplePurchasing ProfessionalsMultiple Buying Influences – Buying teams/centersClose Buyer-Seller Relationships – Ethical Dilemma, page 81
17 Buying Decision Process Recognition of the NeedSearch and Qualification of Potential SourcesSelection of an Order RoutineDetermination of Desired CharacteristicsAcquisition & Analysis of ProposalsPerformance Feedback and EvaluationDescription of Desired CharacteristicsEvaluation of Proposals Selection of Suppliers
18 Characteristics of the Three Types of Buying Decisions Straight RebuyModified RebuyNew TaskNewness of Problem or NeedInformation RequirementsInformation SearchConsideration of New AlternativesMultiple Buying InfluenceFinancial RisksLowMinimalNoneVery SmallMediumModerateLimitedHighMaximumExtensiveLarge
19 Buying Center Members Initiators Users Gatekeepers Influencers DecidersPurchasersThe roles in the buying center work together to affect the outcome of the purchase decision.
21 Multi-Attribute Model A procedure/tool for evaluating suppliers and products that incorporates weighted averages across desired characteristics that are important in the buying decision.
22 Multi-Attribute Model The base scoreAssessment of Product/Service or Supplier Performance (P)P x I = Attribute ScoreThe weightAssessing the Relative Importance of Each Characteristic (I)
23 Example of the Multi-Attribute Model Process Vinyl FabricNylon Velvet FabricCharacteristicPerformance ScoreImportance WeightPxIComfort5945872Durability75664GuaranteePrice106601Evaluation Score217152