Understanding Buyers

1. 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. Discuss the different types of buyer needs. L 4 L L L 1 2 3

3. Learning Objectives 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 L L 6 5 7

4. Learning Objectives 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 L L 8 9 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-SellerRelationships

7. Buying Decision Process Recognition ofthe Need ________________________ Description ofDesired Characteristics Determination of Desired Characteristics Search and Qualificationof Potential Sources _______________________ Acquisition & Analysisof Proposals Evaluation of Proposals &Selection of Suppliers _______________________ Performance Feedback and Evaluation

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

9. Desired State Needs Gap250 Units Per Day Actual State The Needs Gap Produce 1,250 Units Per Day Produce 1,000 Units Per Day

10. ___________ Needs Types of Buyer Needs I need a copier now because I have a majorproject 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. Functional Needs ________ Needs Psychological Needs ___________ Needs

11. Buyer Needs and Benefit-Based Solutions

12. Organizational vs. Individual Needs

13. Ethical Dilemma

14. Procedures for EvaluatingSuppliers and Products Descriptive Rating RFP: a formdevelopedby firms and distributed to qualifiedpotentialsuppliers that help suppliers develop and submit solution proposals.

15. Procedures for EvaluatingSuppliers and Products Performance Score Rating

16. Procedures for EvaluatingSuppliers 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 pictureof 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 productbeing 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. • ___________ – Individualswho are in the position tocontrol the flow of information to and betweenvendors and other buyingteam 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