1. Understanding Buyers
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2. Learning 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
Describe how buyers evaluate suppliers and alternative sales offerings by using the multi- attribute model of evaluation

3. Learning Objectives (continued)
6 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
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
Understand means of engaging customers

4. Types of Buyers Consumer market
Consumers purchase goods and services for their use or consumption
Consumer market
Firms, institutions, and governments acquire goods and services for their own use or for resale to their customers
Business market

5. Characteristics of Business Markets
Concentrated demand
Derived demand
Higher levels of demand fluctuation
Purchasing professionals
Multiple buying influences
Collaborative buyer-seller relationships

6. Buying Process Recognition of the problem
Determination and description of the characteristics of the item and the quantity needed
Search for and qualification of potential sources
Acquisition and analysis of proposals
Evaluation of proposals and selection of suppliers
Selection of an order routine
Performance feedback and evaluation

7. 3.2 The Needs Gap

8. 3.3 Complex Mix of Business Buyer Needs

9. Ethical Dilemma

10. Determination Description
Determination and Description of the Characteristics of the Item and the Quantity Needed
Determination
Consideration and study of the overall situation to determine the preferred solution
Description
Translation of general information from the determination stage into detailed specifications
Buyers describe the exact information required

11. Search for Potential Sources and Analysis of Proposals
Potential sources for suppliers
Trade associations and trade shows
Product source directories
The Internet
Advertising and word of mouth
Requests for proposals: Form developed by firms and distributed to qualified potential suppliers
Suppliers develop and submit proposals to provide products as specified by the firm

12. Multiattribute Model
Used for evaluating suppliers and products
Incorporates weighted averages across desired characteristics

13. 3.5 Weighted Averages for Performance (P) Times Importance (I) and Overall Evaluation Scores

14. Buyer Evaluation Procedures to Enhance Selling Strategies
Modifying the proposed product offering
Altering the buyer’s beliefs about the:
Proposed offering
Competitor’s offering
Altering the importance weights
Paying attention to neglected attributes

15. 3.4 The Two-Factor Model of Buyer Evaluation

16. 3.6 Three Types of Buying Decisions

17. 3.5 Continuum of Types of Buying Decisions

18. 3.6 Comparison of the Principal Characteristics of Assertiveness and Responsiveness

19. 3.7 Communication Styles Matrix

20. Communication Style Flexing
Salespeople need to adapt to the style of the buyer to enhance communication
Positively impacts:
Salespeople’s performance
Quality of buyer-seller relationships

21. Buying Teams (Buying Centers)
Combine the expertise and multiple buying influences of people from different departments throughout the organization
Initiators
Influencers
Roles
Users
Gatekeepers
Purchasers
Deciders

22. Role of information technology
Engaging Customers
Role of information technology
Business-to-business e-commerce
Internet-enabled programs
Customer relationship management systems
Social networking technologies
Buyers demand for relevant information
Seek information through laptops, desktops, iPads, and smartphones
Companies should offer information to targeted customers through social media

23. Need for Adding Value
Buyers depend on salespeople to provide unique and value-added solutions
Expect salespeople to be easily accessible
Salespeople must have:
Comprehensive knowledge about their products and competitor's products
Thorough understanding of the needs of the customers and should be able to solve problems that may arise after sale

24. Key Terms Consumer market Psychological needs Business market
Derived demand
Acceleration principle
Desired states
Actual states
Needs gap
Situational needs
Functional needs
Social needs
Psychological needs
Knowledge needs
Requests for proposals (RFP)
Multiattribute model
Competitive depositioning
Two-factor model of evaluation
Functional attributes
Must-have attributes

25. Key Terms (continued 1) Psychological attributes Amiables Expressives
Delighter attributes
Straight rebuy decision
Electronic data interchange
New task decision
Modified rebuy decisions
Assertiveness
Responsiveness
Amiables
Expressives
Drivers
Analyticals
Competitive depositioning
Two-factor model of evaluation
Buying teams
Initiators
Influencers

26. Key Terms (continued 2) Users Deciders Purchasers Gatekeepers
Outsourcing

27. Summary
Consumer and business markets vary based on their different characteristics
Buyers in the business marketplace undergo conscious and logical processes in making purchase decisions
Buyer needs - Situational, functional, social, psychological, and knowledge
Two-factor model of evaluation helps the buyer evaluate satisfaction obtained on a product purchase

28. Purchasing decisions made by a buyer
Summary (continued 2)
Purchasing decisions made by a buyer
Straight rebuy, modified rebuys, and new tasks
Communication styles help salespeople understand and adapt to personalities of buyers
Buying teams combine the expertise of many people within the department