1. Module Three
Understanding Buyers

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.

3. Learning Objectives Discuss the different types of buyer needs.
Describe how buyers evaluate suppliers and alternative sales offerings by using the multiattribute model of evaluation.
Explain the two-factor model that buyers use to evaluate the performance of sales offerings and develop satisfaction.

4. Learning Objectives
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.

5. Key Thoughts
Business markets operate differently than consumer markets, and those differences affect the selling process.
The role of the salesperson will vary based on where the buyer is in the buying decision process.
Buyer’s needs may be a mix of situational, functional, social, and knowledge needs.
The role of the salesperson will vary based on the type of buying decision.
Salespeople will benefit from being able to identify the buyer’s communication style.

6. Non-Profit Organizations
Categories of Buyers
Consumer Markets
People (Personal Use)
Firms
Institutions
Governments
Non-Profit Organizations
Business Markets

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

8. Buying Decision Process
Initiating the Relationship
Selection of an Order Routine
Recognition of the Need
Evaluation of Proposals & Selection of Suppliers
Description of Desired Characteristics
Acquisition & Analysis of Proposals
Determination of Desired Characteristics
Search and Qualification of Potential Sources
Performance Feedback and Evaluation
Developing the Relationships
Enhancing the Relationships

9. 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

10. 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

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

12. 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

13. 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

14. Multi-Attribute Model: an Example
Compensation
Location
Training 8 .4
3.2 3
1.2 7 .2
1.4 P I
PxI
Offer from Company A
Score 5.8
Which Job Should I Take?
Compensation
Location
Training 3 .4
1.2 9
3.6 8 .2
1.6 P I
PxI
Score 6.4
Offer from Company B

15. 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

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

17. 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

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 Decision Types - Continuum
Straight Rebuy
Modified Rebuy
New Task
Habitual and Routine Decision Making
Extensive Consideration and Decision Making

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

21. Communication Style Flexing
The process by which the salesperson adjusts his/her communication style to fit that of the customers in order to facilitate effective communication.
Ask specific, fact-finding questions in a systematic manner.
Ask fact finding questions leading to what the driver values and rewards.
Create a cooperative environment with an open exchange of information and feelings.
Begin by finding out the Expressive’s perception of the situation and vision of the ideal outcome.
Need Discovery

22. 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.

23. Current Developments in Purchasing
Target Pricing
Supply Chain Management
Relationship Emphasis on Cooperation and Collaboration
Increasing Use of Information Technology
Increased Importance of Knowledge and Creativity