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Understanding Buyers – How and why customers buy

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Presentation on theme: "Understanding Buyers – How and why customers buy"— Presentation transcript:

1 Understanding Buyers – How and why customers buy
Chapter 3

2 In-Class Exercise: I’ll Cook His Goose!

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

4 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

5 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

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
Supportive Respectful Willing Dependable Personable Expressive “I like competent, imaginative salespeople” 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 RESPONSIVENESS ASSERTIVENESS Low High

8 Appendix for Chapter 3

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 team When 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 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?

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 prospect Assess 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 Needs Functional Needs Social Needs Psychological Needs Knowledge Needs

14 Complex Mix of Business Buyer Needs
Functional Attributes 37% Level of Influence On Buyers’ Satisfaction “Must-Haves” Buyers’ Level of Satisfaction Psychological Attributes 63% Level of Influence On Buyers’ Satisfaction “Delighters”

15 Categories of Buyers Consumer Markets Business Markets
People (Personal Use) Manufacturers Institutions/Governments Wholesalers, Retailers Non-Profit Organizations Business Markets

16 Distinguishing Characteristics of Business Markets
Concentrated Demand Derived Demand Higher Levels of Demand Fluctuation Acceleration Principle Purchasing Professionals Multiple Buying Influences – Buying teams/centers Close Buyer-Seller Relationships – Ethical Dilemma, page 81

17 Buying Decision Process
Recognition of the Need Search and Qualification of Potential Sources Selection of an Order Routine Determination of Desired Characteristics Acquisition & Analysis of Proposals Performance Feedback and Evaluation Description of Desired Characteristics Evaluation of Proposals Selection of Suppliers

18 Characteristics of the Three 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 None Very Small Medium Moderate Limited High Maximum Extensive Large

19 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.

20 Individual Factors Affecting the Buying Center

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 score Assessment of Product/Service or Supplier Performance (P) P x I = Attribute Score The weight Assessing the Relative Importance of Each Characteristic (I)

23 Example of the Multi-Attribute Model Process
Vinyl Fabric Nylon Velvet Fabric Characteristic Performance Score Importance Weight PxI Comfort 5 9 45 8 72 Durability 7 56 64 Guarantee Price 10 6 60 1 Evaluation Score 217 152

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