1. Module Three
Understanding Buyers

2. 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.

3. Learning Objectives Discuss the different types of buyer needs.
Describe how buyers evaluate suppliers and alternative sales offerings by using the multiattribute model of evaluation.
Explain the two-factor model that buyers use to evaluate the performance of sales offerings and develop satisfaction.

4. Learning Objectives
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.

5. Understanding the Buyer’s Needs and Dreams is the Key to Success
Setting the Stage
Understanding the Buyer’s Needs and Dreams is the Key to Success
To what did David Laube contribute his success?
What is, and more importantly, why does David hold a “discovery” session with his clients?
Answers
David contributes his success to his belief that great “salespeople do not sell, buy rather serve as a counsel to the buyer to better understand the true nature of their problems and needs.”
In order to better serve his customers, Dave had to help them discover and understand each other’s goals, objectives, dreams, and fears. Once that was accomplished, they could begin developing a strategy for their financial future.

6. Non-Profit Organizations
Categories of Buyers
Consumer Markets
People (Personal Use)
Firms
Institutions
Governments
Non-Profit Organizations
Business Markets

7. Distinguishing Characteristics of Business Markets
Concentrated Demand
Derived Demand
Higher Levels of Demand Fluctuation
Purchasing Professionals
Multiple Buying Influences
Close Buyer-Seller Relationships

8. Buying Decision Process
Initiating the Relationship
Selection of an Order Routine
Recognition of the Need
Evaluation of Proposals & Selection of Suppliers
Description of Desired Characteristics
Acquisition & Analysis of Proposals
Determination of Desired Characteristics
Search and Qualification of Potential Sources
Performance Feedback and Evaluation
Developing the Relationships
Enhancing the Relationships

9. 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

10. Needs Gap – An Example from the Life of a College Senior
I have a job.
Desired State
Needs Gap
I do not have a job.
Actual State

11. The Needs Gap Desired State Actual State Produce 1,250 Units Per Day

12. Types of Buyer Needs Situational Needs Functional Needs Social Needs
Psychological Needs
Knowledge Needs

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

14. Multi-Attribute Model: an Example
Which Job Should I Take?
Company A
Compensation
Location
Training 8 .4
3.2 3
1.2 7 .2
1.4 P I
PxI
Score 5.8
Company B
Compensation
Location
Training 3 .4
1.2 9
3.6 8 .2
1.6 P I
PxI
Score 6.4

15. 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

16. Complex Mix of Business Buyer Needs
37%
Level of Influence
On Buyers’ Satisfaction
Functional Attributes
“Must-Haves”
Buyers’
Level of
Satisfaction
Psychological Attributes
63%
Level of Influence
On Buyers’ Satisfaction
“Delighters”

17. 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

18. 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
None
Very Small
Medium
Moderate
Limited
High
Maximum
Extensive
Large

19. Buying Decision Types - Continuum
Straight Rebuy
Modified Rebuy
New Task
Habitual and Routine Decision Making
Extensive Consideration and Decision Making

20. Communication Styles Matrix
Low Assertiveness
High Assertiveness
Low Responsiveness
High Responsiveness
Analytical
Driver
Amiable
Expressive
Slow Paced
Fast Paced
Relationship Oriented
Task Oriented

21. 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.
Ask fact finding questions leading to what the driver values and rewards.
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.
Ask specific, fact-finding questions in a systematic manner.
Need Discovery

22. 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.

23. 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