Understanding Buyers

Learning Objectives L 1 L 2 L 3 L 4 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 2 L 3 L 4

Learning Objectives L 5 L 6 L 7 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 5 L 6 L 7

Learning Objectives L 8 L 9 L 10 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

Categories of Buyers Consumer Markets Business Markets Institutions Governments Firms

Distinguishing Characteristics of Business Markets _______________ Demand ____________ Demand Higher Levels of Demand Fluctuation Purchasing Professionals Multiple Buying Influences Close Buyer-Seller Relationships Consumer Computer Market Computers Suppliers Suppliers Computer Component Manufacturing Equipment Suppliers Office Consumable Suppliers Labor, Financial, Other Resources Peripheral Suppliers Computer Consumable Suppliers

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

Needs Gap – An Example from the Life of a College Senior I have a job. Desired State ______ ______ I do not have a job. Career Services Professional Networking Commitment to Learning Extra Curricular Activity Actual State

The Needs Gap Desired State Actual State Produce 1,250 Units Per Day Needs Gap 250 Units Per Day Actual State Produce 1,000 Units Per Day

Types of Buyer Needs ___________ Needs Functional Needs ________ 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 a technology-savvy person. I need an extended warranty with a copier. I need comprehensive training on how to use a copier. ___________ Needs Functional Needs ________ Needs Psychological Needs ___________ Needs

Buyer Needs and Benefit-Based Solutions

Organizational vs. Individual Needs

Ethical Dilemma

Procedures for Evaluating Suppliers and Products Descriptive Rating RFP: a form developed by firms and distributed to qualified potential suppliers that help suppliers develop and submit solution proposals.

Procedures for Evaluating Suppliers and Products Performance Score Rating

Procedures for Evaluating Suppliers and Products Multiattribute Model

Employing 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 picture of a competitor’s attributes or qualities.

Employing 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.”

Postpurchase Evaluation and the Formation of Satisfaction

Types of Purchasing Decisions Electronic Data Interchange (EDI): Transfer of data electronically between two computer systems.

Buying Decision Types

Understanding Communication Styles

Communication Styles Matrix

Communication Style Flexing The process by which the salesperson __________ his/her communication style to fit that of the customers in order to _______________ communication.

Buying Teams Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people form different departments throughout the organization. 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 product being purchased. The roles in the buying center work together to affects the outcome of the purchase decision.

Buying Teams Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people form different departments throughout the organization. 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. ___________ – Individuals who are in the position to control the flow of information to and between vendors and other buying team members.

Current Developments in Purchasing Increasing Use of Information Technology ______________________ Increased Outsourcing ________________ Increased Importance of Knowledge and Creativity Relationship Emphasis on Cooperation and Collaboration

Ethical Dilemma

Role Play