Understanding Buyers – How and why customers buy

Chapter 3

In-Class Exercise: I’ll Cook His Goose!

Understanding Buyers Starts with understanding yourself,…..and being

confident in what you are selling.Knowledge Bases (from Chapter 2): Industry Company Product Price and Promotion Service Market/Customer Competitor Technology

Adaptive Selling

Adaptive selling (Chapter 1) entails: Gathering information about each customer Observing customers’ reactions during the

sales call Being able to make rapid adjustments during

the sales process/call/presentation Tailoring the sales presentation to each

customer’s social style

Understanding Social Styles

Assertiveness Competitive Rapid movers Quick decision makers Initiative takers Time sensitive

Responsiveness Friendly Talkative Approachable Less time sensitive Slower decision makers More sensitive to others’

feelings

Understanding Social Styles

Understand and know yourself and your prospect’s dominant personality type.

Social Styles Matrix

Amiable“Show concern for me and my

problems”• Supportive• Respectful• Willing• Dependable• Personable

Expressive“I like competent, imaginative

salespeople”• Personable• Stimulating• Enthusiastic• Dramatic• Inspiring

Driver“Show me bottom line results”

• Determined• Demanding• Thorough• Decisive• Efficient

Analytical“What I need are practical suggestions”

• Industrious• Persistent• Serious• Vigilant• Orderly

RES

PON

SIVE

NES

S

ASSERTIVENESS

Low

High

HighLow

Appendix for Chapter 3

In-Class Exercise: What Makes Him so Successful?

Selling From TheCustomer’s Perspective Three conditions constitute a quality buying

experience:1. Customers believe that salespeople’s

assessments of their needs and expectations are good (from quality communication)

2. Customers experience fulfillment of these needs on a long-term basis due to the salesperson and the sales support team

3. When customer needs change suddenly, salespeople respond by making every effort to meet new needs

Selling to Prospects’Needs and Wants – a starting point The goal is to reach a common understanding

between buyer and seller This can only happen through the process of

disclosure – the giving and taking of information Do we share any background experiences? Are our language skills, attitudes, and beliefs

similar or dissimilar? What assumptions have we made about each

other based on stereotypes?

Uncovering Needs and Wants

Salespeople must: Determine what will motivate the prospect to

act (not necessarily a purchase) Understand the goal orientation of the

prospect Assess and adapt to the style of the prospect

Types of Buyer Needs

Situational 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.

Functional Needs

Social Needs

Psychological Needs

Knowledge Needs

Complex Mix of Business Buyer Needs

Buyers’Level of

Satisfaction

Psychological Attributes“Delighters”

Functional Attributes

“Must-Haves”

63%Level of Influence

On Buyers’ Satisfaction

37%Level of Influence

On Buyers’ Satisfaction

Categories of Buyers

Manufacturers

Institutions/Governments

Wholesalers, Retailers

Non-Profit Organizations

Business Markets

People (Personal Use)Consumer Markets

Distinguishing Characteristics of Business Markets

Concentrated Demand Derived Demand Higher Levels of Demand Fluctuation

Acceleration Principle Purchasing Professionals Multiple Buying Influences – Buying teams/centers Close Buyer-Seller Relationships – Ethical Dilemma,

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Buying Decision Process

Recognition ofthe Need

Determination of Desired Characteristics

Description ofDesired Characteristics

Search and Qualificationof Potential Sources

Acquisition & Analysisof Proposals

Evaluation of ProposalsSelection of Suppliers

Selection of anOrder Routine

Performance Feedback and Evaluation

Characteristics of theThree Types of Buying Decisions

Straight Rebuy

Modified Rebuy

New Task

Newness of Problem or NeedInformation Requirements

Information SearchConsideration of New Alternatives

Multiple Buying InfluenceFinancial Risks

LowMinimalMinimal

NoneVery Small

Low

MediumModerateLimitedLimited

ModerateModerate

HighMaximumExtensiveExtensive

LargeHigh

Buying Center Members

• Initiators• Users• Gatekeepers• Influencers• Deciders• Purchasers

The roles in the buying center work together to affect

the outcome of the purchase decision.

Individual Factors Affecting the Buying Center

Multi-Attribute Model

A procedure/tool for evaluating suppliers and products that incorporates weighted averages across desired characteristics that are important in the buying decision.

Multi-Attribute Model

Assessment of Product/Service or Supplier Performance (P)

Assessing the Relative Importance of Each Characteristic (I)

The base score

The weight

Example of the Multi-Attribute Model Process

Vinyl Fabric Nylon Velvet Fabric

CharacteristicPerformance

ScoreImportance

Weight PxIPerformance

ScoreImportance

Weight PxIComfort

5 9 45 8 9 72Durability

7 8 56 8 8 64Guarantee

7 8 56 8 8 64Price

10 6 60 1 6 6Evaluation

Score 217 152