3Understanding

Buyers

3Learning 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 1

L 2

L 3

L 4

3Learning 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 6

L 5

L 7

3Learning 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 8

L 9

L 10

3Categories of Buyers

FirmsInstitutions Governments

Business Markets

Consumer Markets

3

ConsumerComputer Market

ComputersSuppliers

ComputerComponent

Suppliers

Manufacturing EquipmentSuppliers

Office ConsumableSuppliers

Labor, Financial, Other Resources

Peripheral Suppliers

Computer Consumable

Suppliers

Distinguishing Characteristics of Business Markets

• _______________ Demand• ____________ Demand• Higher Levels of Demand Fluctuation• Purchasing Professionals• Multiple Buying Influences• Close Buyer-Seller

Relationships

3Recognition of

the 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

Buying Decision Process

________________________

_______________________

_______________________

3Needs Gap – An Example from the

Life of a College Senior

Actual State

Desired State

____________

I have a job.

I do not havea job.

Career ServicesProfessional NetworkingCommitment to LearningExtra Curricular Activity

3The Needs Gap

Actual State

Desired StateProduce 1,250 Units Per Day

Produce 1,000 Units Per Day

Needs Gap250 Units Per Day

3Types of Buyer Needs

___________ 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

3Buyer Needs and

Benefit-Based Solutions

3Organizational vs. Individual Needs

3Ethical Dilemma

3Procedures for Evaluating

Suppliers and Products

RFP: a formdevelopedby firms and distributed to qualifiedpotentialsuppliers that help suppliers develop and submit solution proposals.

Descriptive Rating

3Procedures for Evaluating

Suppliers and Products

Performance Score Rating

3Procedures for Evaluating

Suppliers and Products

Multiattribute Model

3Employing 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.

3Employing 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.”

3Postpurchase Evaluation and the

Formation of Satisfaction

3Types of Purchasing Decisions

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

3Buying Decision Types

3Understanding Communication Styles

3Communication Styles Matrix

3Communication Style Flexing

The process by which the salesperson __________ his/her communication style to fit that of the customers in order to_______________communication.

3Buying Teams

• 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.

Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people form different departments throughout the organization.

3Buying Teams

• 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.

Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people form different departments throughout the organization.

3Current Developments in Purchasing

Increasing Use of Information Technology

Relationship Emphasis on Cooperation and Collaboration

______________________

________________

Increased Importance of Knowledge and Creativity

Increased Outsourcing

3Ethical Dilemma

3Role Play