1. Understanding Buyers

2. 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

3. 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

4. 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

5. Categories of Buyers Consumer Markets Business Markets Institutions
Governments
Firms

6. 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

7. 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

8. 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

9. 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

10. 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

11. Buyer Needs and Benefit-Based Solutions

12. Organizational vs. Individual Needs

13. Ethical Dilemma

14. 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.

15. Procedures for Evaluating Suppliers and Products
Performance Score Rating

16. Procedures for Evaluating Suppliers and Products
Multiattribute Model

17. 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.

18. 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.”

19. Postpurchase Evaluation and the Formation of Satisfaction

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

21. Buying Decision Types

22. Understanding Communication Styles

23. Communication Styles Matrix

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

25. 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.

26. 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.

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

28. Ethical Dilemma

29. Role Play