1. Understanding Buyers – How and why customers buy
Chapter 3

2. 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

3. Adaptive Selling Adaptive selling (Module 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

4. 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

5. Social Styles Matrix “Show concern for me and my problems” Amiable
Supportive
Respectful
Willing
Dependable
Personable
Expressive
“I like competent, imaginative salespeople”
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
RESPONSIVENESS
ASSERTIVENESS
Low
High

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

7. Selling From The Customer’s Perspective
Three conditions constitute a quality buying experience:
Customers believe that salespeople’s assessments of their needs and expectations are good (from quality communication)
Customers experience fulfillment of these needs on a long-term basis due to the salespeople and the sales support team
When customer needs change suddenly, salespeople respond by making every effort to meet new needs

8. 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?

9. 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

10. The Needs Gap – an example
Produce 1,250 Units Per Day
Desired State
Needs Gap
250 Units Per Day
Actual State
Produce 1,000 Units Per Day

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

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

13. Categories of Buyers Consumer Markets Business Markets
People (Personal Use)
Manufacturers
Institutions/Governments
Wholesalers, Retailers
Non-Profit Organizations
Business Markets

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

15. 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

16. 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

17. Chapter Case – p. 75

18. Example of the Multi-Attribute Model Process
Vinyl Fabric
Nylon Velvet Fabric
Characteristic
Performance Score
Importance Weight
PxI
Comfort 5 9 45 8 72
Durability 7 56 64
Guarantee
Price 10 6 60 1
Evaluation Score
217
204

19. Perceived Risk
In many sales situations, the most important perception to be dealt with is risk
Salespeople must provide evidence that their solutions will work, reducing perceived risk of the buyers decisions

20. Five Types of Risk in Purchasing Decisions
Financial
Social
Psychological
Performance
Physical
Understanding these are important for effective salespeople

21. 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

22. 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.

23. Individual Factors Affecting the Buying Center