Understanding Buyers Module Three

Categories of Buyers FirmsInstitutionsGovernments Non-Profit Organizations ________________ ________________

Distinguishing Characteristics of Business Markets _______________ Demand_______________ Demand Higher Levels of Demand ________Higher Levels of Demand ________ Purchasing ProfessionalsPurchasing Professionals _____________ Buying Influences_____________ Buying Influences Close Buyer-Seller RelationshipsClose Buyer-Seller Relationships

Buying Decision Process _____________ of the Need ______________ of Desired Characteristics _____________ of Desired Characteristics ______ and _________ of Potential Sources __________ & _______ of Proposals ________ of Proposals _________ of Suppliers Selection of an Order Routine Performance ________ and _____________

Needs Gap – An Example from the Life of a College Senior _____ _____ I have a job. I do not have a job. __________ ___________

Multi-Attribute Model Assessment of Product or Supplier Performance (P) Assessing the Relative Importance of Each Characteristic (I) The base score The weight

PIPxIPIPxI Multi-Attribute Model: an Example On-line Resume Service Campus Career Services Networking Opportunities Exposure of Resume Quality Control Networking Opportunities Exposure of Resume Quality Control

Employing Buyer Evaluation Procedures to Enhance Selling Strategies _________________________ Being Proposed_________________________ Being Proposed _______ the Buyer’s _________ about the Proposed Offering_______ the Buyer’s _________ about the Proposed Offering Alter the Buyer’s Beliefs about the Competitor’s OfferingAlter the Buyer’s Beliefs about the Competitor’s Offering __________________________________________________________ Call Attention to Neglected AttributesCall Attention to Neglected Attributes

Complex Mix of Business Buyer Needs Buyers’ Level of Satisfaction ___________ ___________ “Delighters” ________ ________ “Must-Haves” 63% Level of Influence On Buyers’ Satisfaction 37% Level of Influence On Buyers’ Satisfaction

Characteristics of the Three Types of Buying Decisions Straight Rebuy Modified Rebuy New Task 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 High Maximum Extensive Extensive Large High

Low Assertiveness High Assertiveness Low Responsiveness High Responsiveness Communication Styles Matrix AnalyticalDriver AmiableExpressive____________________ ________________________

Types of Purchasing Decisions _______________ Buying Situation_______________ Buying Situation –Routinized Response Behavior _______________ Buying Situation_______________ Buying Situation –Limited Problem Solving _______________ Buying Situation_______________ Buying Situation –Extensive Problem Solving

Buying Center Members ____________________ The roles in the buying center work together to affects the outcome of the purchase decision.

Current Developments in Purchasing Increasing Use of Information Technology Relationship Emphasis on __________ and ___________ Supply Chain Management __________ Increased Importance of Knowledge and Creativity