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Sell5_PPT_Ch03.pptx

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Understanding Buyers

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

Learning Objectives

LEARNING OUTCOMES

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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

Learning Objectives (continued)

LEARNING OUTCOMES

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Types of Buyers

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

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Characteristics of Business Markets

Concentrated demand

Derived demand

Higher levels of demand fluctuation

Purchasing professionals

Multiple buying influences

Collaborative buyer-seller relationships

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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

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3.2 The Needs Gap

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Figure

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3.3 Complex Mix of Business Buyer Needs

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Figure

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Ethical Dilemma

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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

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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

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Multiattribute Model

Used for evaluating suppliers and products

Incorporates weighted averages across desired characteristics

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

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Exhibit

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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

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3.4 The Two-Factor Model of Buyer Evaluation

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Figure

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3.6 Three Types of Buying Decisions

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Exhibit

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3.5 Continuum of Types of Buying Decisions

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Figure

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3.6 Comparison of the Principal Characteristics of Assertiveness and Responsiveness

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Figure

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3.7 Communication Styles Matrix

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Figure

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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

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Buying Teams (Buying Centers)

Influencers

Users

Purchasers

Deciders

Initiators

Gatekeepers

Roles

Combine the expertise and multiple buying influences of people from different departments throughout the organization

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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

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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

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Key Terms

Consumer market

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

KEY TERMS

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Key Terms (continued 1)

Psychological attributes

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

KEY TERMS

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Key Terms (continued 2)

Users

Deciders

Purchasers

Gatekeepers

Outsourcing

KEY TERMS

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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

SUMMARY

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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

SUMMARY

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