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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 Describe how buyers evaluate suppliers and alternative sales offerings by using the multi- attribute model of evaluation

Learning Objectives (continued) 6 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 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 Understand means of engaging customers

Types of Buyers Consumer market Consumers purchase goods and services for their use or consumption Consumer market Firms, institutions, and governments acquire goods and services for their own use or for resale to their customers Business market

Characteristics of Business Markets Concentrated demand Derived demand Higher levels of demand fluctuation Purchasing professionals Multiple buying influences Collaborative buyer-seller relationships

Buying Process Recognition of the problem Determination and description of the characteristics of the item and the quantity needed Search for and qualification of potential sources Acquisition and analysis of proposals Evaluation of proposals and selection of suppliers Selection of an order routine Performance feedback and evaluation

3.2 The Needs Gap

3.3 Complex Mix of Business Buyer Needs

Ethical Dilemma

Determination Description Determination and Description of the Characteristics of the Item and the Quantity Needed Determination Consideration and study of the overall situation to determine the preferred solution Description Translation of general information from the determination stage into detailed specifications Buyers describe the exact information required

Search for Potential Sources and Analysis of Proposals Potential sources for suppliers Trade associations and trade shows Product source directories The Internet Advertising and word of mouth Requests for proposals: Form developed by firms and distributed to qualified potential suppliers Suppliers develop and submit proposals to provide products as specified by the firm

Multiattribute Model Used for evaluating suppliers and products Incorporates weighted averages across desired characteristics

3.5 Weighted Averages for Performance (P) Times Importance (I) and Overall Evaluation Scores

Buyer Evaluation Procedures to Enhance Selling Strategies Modifying the proposed product offering Altering the buyer’s beliefs about the: Proposed offering Competitor’s offering Altering the importance weights Paying attention to neglected attributes

3.4 The Two-Factor Model of Buyer Evaluation

3.6 Three Types of Buying Decisions

3.5 Continuum of Types of Buying Decisions

3.6 Comparison of the Principal Characteristics of Assertiveness and Responsiveness

3.7 Communication Styles Matrix

Communication Style Flexing Salespeople need to adapt to the style of the buyer to enhance communication Positively impacts: Salespeople’s performance Quality of buyer-seller relationships

Buying Teams (Buying Centers) Combine the expertise and multiple buying influences of people from different departments throughout the organization Initiators Influencers Roles Users Gatekeepers Purchasers Deciders

Role of information technology Engaging Customers Role of information technology Business-to-business e-commerce Internet-enabled programs Customer relationship management systems Social networking technologies Buyers demand for relevant information Seek information through laptops, desktops, iPads, and smartphones Companies should offer information to targeted customers through social media

Need for Adding Value Buyers depend on salespeople to provide unique and value-added solutions Expect salespeople to be easily accessible Salespeople must have: Comprehensive knowledge about their products and competitor's products Thorough understanding of the needs of the customers and should be able to solve problems that may arise after sale

Key Terms Consumer market Psychological needs Business market Derived demand Acceleration principle Desired states Actual states Needs gap Situational needs Functional needs Social needs Psychological needs Knowledge needs Requests for proposals (RFP) Multiattribute model Competitive depositioning Two-factor model of evaluation Functional attributes Must-have attributes

Key Terms (continued 1) Psychological attributes Amiables Expressives Delighter attributes Straight rebuy decision Electronic data interchange New task decision Modified rebuy decisions Assertiveness Responsiveness Amiables Expressives Drivers Analyticals Competitive depositioning Two-factor model of evaluation Buying teams Initiators Influencers

Key Terms (continued 2) Users Deciders Purchasers Gatekeepers Outsourcing

Summary Consumer and business markets vary based on their different characteristics Buyers in the business marketplace undergo conscious and logical processes in making purchase decisions Buyer needs - Situational, functional, social, psychological, and knowledge Two-factor model of evaluation helps the buyer evaluate satisfaction obtained on a product purchase

Purchasing decisions made by a buyer Summary (continued 2) Purchasing decisions made by a buyer Straight rebuy, modified rebuys, and new tasks Communication styles help salespeople understand and adapt to personalities of buyers Buying teams combine the expertise of many people within the department