Description
A "buyer" or merchandiser is a person who purchases finished goods, typically for resale, for a firm, government, or organization.
Understanding Buyers
Learning Objectives
1. Categorize primary types of buyers. 2. Discuss the distinguishing characteristics of business markets. 3. List the different steps in the business-tobusiness buying process.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Learning Objectives
4. Discuss the different types of buyer needs. 5. Describe how buyers evaluate suppliers and alternative sales offerings by using the multiattribute model of evaluation. 6. Explain the two-factor model that buyers use to evaluate the performance of sales offerings and develop satisfaction.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Learning Objectives
7. Explain the different types of purchasing decisions. 8. Describe the four communication styles and how salespeople must adapt and flex their own styles to maximize communication. 9. Explain the concept of buying teams and specify the different member roles.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Setting the Stage
Understanding the Buyer’s Needs and Dreams is the Key to Success
1. To what did David Laube contribute his success? 2. What is, and more importantly, why does David hold a “discovery” session with his clients?
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Categories of Buyers
Consumer Markets
People (Personal Use)
Firms
Business Markets
Institutions Governments Non-Profit Organizations
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Distinguishing Characteristics of Business Markets
• • • • • • Concentrated Demand Derived Demand Higher Levels of Demand Fluctuation Purchasing Professionals Multiple Buying Influences Close Buyer-Seller Relationships
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Buying Decision Process
Initiating the Relationship
Evaluation Search Acquisition Determination Selection Recognition Description and ofQualification & Proposals of Analysis an of of of & Performance Feedback Desired Selection of Potential Order ofthe Proposals Characteristics of Need Routine Suppliers Sources and Evaluation Developing the Relationships
Enhancing the Relationships
Professional Selling: A Trust-Based Approach Module 3: Understanding Buyers Ingram LaForge Avila Williams Schwepker Jr.
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
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Needs Gap – An Example from the Life of a College Senior
I have a job.
Desired State
Needs Gap
Actual State
I do not have a job.
Professional Selling: A Trust-Based Approach Module 3: Understanding Buyers Ingram LaForge Avila Williams Schwepker Jr.
The Needs Gap
Produce 1,250 Units Per Day
Desired State
Needs Gap 250 Units Per Day
Actual State
Professional Selling: A Trust-Based Approach
Produce 1,000 Units Per Day
Module 3: Understanding Buyers Ingram LaForge Avila Williams
Schwepker Jr.
Types of Buyer Needs
• • • • • Situational Needs Functional Needs Social Needs Psychological Needs Knowledge Needs
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Multi-Attribute Model
The base score
Assessment of Product or Supplier Performance (P)
The weight
Assessing the Relative Importance of Each Characteristic (I)
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Multi-Attribute Model: an Example
Which Job Should I Take?
P I PxI
Compensation 8 3 .4 .4 3.2 1.2
Company A
Location
Score 5.8
Training
7
.2
1.4
P I PxI
Compensation 3 9 .4 .4 1.2 3.6
Company B
Location
Score 6.4
Ingram LaForge Avila Williams
Training
Professional Selling: A Trust-Based Approach
8
.2
1.6
Module 3: Understanding Buyers
Schwepker Jr.
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
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Complex Mix of Business Buyer Needs
37% Level of Influence On Buyers’ Satisfaction
Functional Attributes
“Must-Haves”
Buyers’ Level of Satisfaction
63% Level of Influence On Buyers’ Satisfaction
Psychological Attributes
“Delighters”
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
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
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Characteristics of the Three Types of Buying Decisions
Straight Modified Rebuy Rebuy
Newness of Problem or Need Information Requirements Information Search Consideration of New Alternatives Multiple Buying Influence Financial Risks Low Minimal Minimal None Very Small Low Medium Moderate Limited Limited Moderate Moderate
New Task
High Maximum Extensive Extensive Large High
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Buying Decision Types - Continuum
Straight Rebuy Modified Rebuy New Task
Habitual and Routine Decision Making
Extensive Consideration and Decision Making
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Communication Styles Matrix
High Responsiveness
Amiable
Relationship Oriented
Low Assertiveness
Expressive
Slow Paced
Fast Paced
High Assertiveness
Analytical
Task Oriented
Driver
Low Responsiveness
Professional Selling: A Trust-Based Approach Module 3: Understanding Buyers Ingram LaForge Avila Williams Schwepker Jr.
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.
Need Discovery
Ask specific, fact-finding questions in a systematic manner.
Ask fact finding questions leading to what the driver values and rewards.
Module 3: Understanding Buyers
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.
Ingram LaForge Avila Williams Schwepker Jr.
Professional Selling: A Trust-Based Approach
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.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Current Developments in Purchasing
Increasing Use of Information Technology
Relationship Emphasis on Cooperation and Collaboration Supply Chain Management Target Pricing Increased Importance of Knowledge and Creativity
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
doc_157115155.ppt
A "buyer" or merchandiser is a person who purchases finished goods, typically for resale, for a firm, government, or organization.
Understanding Buyers
Learning Objectives
1. Categorize primary types of buyers. 2. Discuss the distinguishing characteristics of business markets. 3. List the different steps in the business-tobusiness buying process.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Learning Objectives
4. Discuss the different types of buyer needs. 5. Describe how buyers evaluate suppliers and alternative sales offerings by using the multiattribute model of evaluation. 6. Explain the two-factor model that buyers use to evaluate the performance of sales offerings and develop satisfaction.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Learning Objectives
7. Explain the different types of purchasing decisions. 8. Describe the four communication styles and how salespeople must adapt and flex their own styles to maximize communication. 9. Explain the concept of buying teams and specify the different member roles.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Setting the Stage
Understanding the Buyer’s Needs and Dreams is the Key to Success
1. To what did David Laube contribute his success? 2. What is, and more importantly, why does David hold a “discovery” session with his clients?
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Categories of Buyers
Consumer Markets
People (Personal Use)
Firms
Business Markets
Institutions Governments Non-Profit Organizations
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Distinguishing Characteristics of Business Markets
• • • • • • Concentrated Demand Derived Demand Higher Levels of Demand Fluctuation Purchasing Professionals Multiple Buying Influences Close Buyer-Seller Relationships
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Buying Decision Process
Initiating the Relationship
Evaluation Search Acquisition Determination Selection Recognition Description and ofQualification & Proposals of Analysis an of of of & Performance Feedback Desired Selection of Potential Order ofthe Proposals Characteristics of Need Routine Suppliers Sources and Evaluation Developing the Relationships
Enhancing the Relationships
Professional Selling: A Trust-Based Approach Module 3: Understanding Buyers Ingram LaForge Avila Williams Schwepker Jr.
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
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Needs Gap – An Example from the Life of a College Senior
I have a job.
Desired State
Needs Gap
Actual State
I do not have a job.
Professional Selling: A Trust-Based Approach Module 3: Understanding Buyers Ingram LaForge Avila Williams Schwepker Jr.
The Needs Gap
Produce 1,250 Units Per Day
Desired State
Needs Gap 250 Units Per Day
Actual State
Professional Selling: A Trust-Based Approach
Produce 1,000 Units Per Day
Module 3: Understanding Buyers Ingram LaForge Avila Williams
Schwepker Jr.
Types of Buyer Needs
• • • • • Situational Needs Functional Needs Social Needs Psychological Needs Knowledge Needs
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Multi-Attribute Model
The base score
Assessment of Product or Supplier Performance (P)
The weight
Assessing the Relative Importance of Each Characteristic (I)
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Multi-Attribute Model: an Example
Which Job Should I Take?
P I PxI
Compensation 8 3 .4 .4 3.2 1.2
Company A
Location
Score 5.8
Training
7
.2
1.4
P I PxI
Compensation 3 9 .4 .4 1.2 3.6
Company B
Location
Score 6.4
Ingram LaForge Avila Williams
Training
Professional Selling: A Trust-Based Approach
8
.2
1.6
Module 3: Understanding Buyers
Schwepker Jr.
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
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Complex Mix of Business Buyer Needs
37% Level of Influence On Buyers’ Satisfaction
Functional Attributes
“Must-Haves”
Buyers’ Level of Satisfaction
63% Level of Influence On Buyers’ Satisfaction
Psychological Attributes
“Delighters”
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
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
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Characteristics of the Three Types of Buying Decisions
Straight Modified Rebuy Rebuy
Newness of Problem or Need Information Requirements Information Search Consideration of New Alternatives Multiple Buying Influence Financial Risks Low Minimal Minimal None Very Small Low Medium Moderate Limited Limited Moderate Moderate
New Task
High Maximum Extensive Extensive Large High
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Buying Decision Types - Continuum
Straight Rebuy Modified Rebuy New Task
Habitual and Routine Decision Making
Extensive Consideration and Decision Making
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Communication Styles Matrix
High Responsiveness
Amiable
Relationship Oriented
Low Assertiveness
Expressive
Slow Paced
Fast Paced
High Assertiveness
Analytical
Task Oriented
Driver
Low Responsiveness
Professional Selling: A Trust-Based Approach Module 3: Understanding Buyers Ingram LaForge Avila Williams Schwepker Jr.
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.
Need Discovery
Ask specific, fact-finding questions in a systematic manner.
Ask fact finding questions leading to what the driver values and rewards.
Module 3: Understanding Buyers
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.
Ingram LaForge Avila Williams Schwepker Jr.
Professional Selling: A Trust-Based Approach
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.
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
Current Developments in Purchasing
Increasing Use of Information Technology
Relationship Emphasis on Cooperation and Collaboration Supply Chain Management Target Pricing Increased Importance of Knowledge and Creativity
Professional Selling: A Trust-Based Approach
Module 3: Understanding Buyers
Ingram
LaForge Avila Williams
Schwepker Jr.
doc_157115155.ppt