1. Module Three
Understanding Buyers

2. Understanding Buyers An Expert’s Viewpoint:
Nick LaRoche is an account executive for S.K.K.R., a manufacturers’ representative group selling Weber-Stephens Products. Nick makes an effort to understand his buyers and the way they do business. For example, Nick found a way to help one of his customers increase profits simply by changing the way they purchased Weber products.
Action

3. Understanding Buyers An Expert’s Viewpoint:
Result
The amount Nick sold to this account soon doubled. The relationship between Nick and the buyer has continued to grow since the purchasing change. The buyer has realized increased sales revenue and profits while Nick has enjoyed watching this account grow in total volume.

4. Non-Profit Organizations
Categories of Buyers
Consumer Markets 1
Business Markets 2
Firms
Institutions
Governments
Non-Profit Organizations

5. Distinguishing Characteristics of Business Markets
Concentrated Demand
Derived Demand
Higher Levels of Demand Fluctuation
Purchasing Professionals
Multiple Buying Influences
Close Buyer-Seller Relationships

6. 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

7. Needs Gap – An Example from the Life of a College Senior
I have a job.
Desired State
Needs Gap
I do not have a job.
Actual State

8. Multi-Attribute Model
Assessment of Product or Supplier Performance (P)
The base score
P x I = Attribute Score
Assessing the Relative Importance of Each Characteristic (I)
The weight

9. Multi-Attribute Model: an Example
PxI
4.8
Score
Networking Opportunities
Exposure of Resume
Quality Control 8 4 6 .5 .3 .1 2
2.4 .4 4
1.2 .6
On-line Resume Service
5.8
Score
Campus Career Services

10. 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

11. 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”

12. 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

13. Communication Styles Matrix
Low Assertiveness
High Assertiveness
Low Responsiveness
High Responsiveness
Amiable
Expressive
Relationship Oriented
Task Oriented
Slow Paced
Fast Paced
Analytical
Driver

14. Types of Purchasing Decisions
Straight Rebuy Buying Situation
Routinized Response Behavior
Modified Rebuy Buying Situation
Limited Problem Solving
New Task Buying Situation
Extensive Problem Solving

15. Buying Center Members Initiators Users Gatekeepers Influencers
Deciders
Purchasers
The roles in the buying center work together to affects the outcome of the purchase decision.

16. Current 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