Chapter 3: Understanding Buyers Flashcards
Salespeople will benefit from being able to identify the …..
Buyer’s communication style
The role of the salesperson will vary based on the type of …
Buying decision
Business markets operate differently than consumer markets, and those differences affect the ….
Selling process
Buyer’s needs may be a mix of ….
situational
functional
social
knowledge needs
Distinguishing Characteristics of Business Markets:
• Concentrated Demand
• Derived Demand
• Higher Levels of Demand Fluctuation
• Purchasing Professionals
• Multiple Buying Influences
• Close Buyer-Seller Relationships
Categories of Buyers:
- Consumer Markets
- Business Markets
Category of buyers for people (personal use)
Consumer market
Category of buyers for firms, institutions, governments, non-profit organizations
Business Markets
Buying Decision Process:
(8)
A. INITIATING the relationship
1. Recognition of Need
2. Description of Desired Characteristics
B. DEVELOPING the relationships
3. Determination of Desired Characteristics
4. Search and Qualification of Potential Sources
5. Acquisition and Analysis of Proposals
6. Evaluation of Proposals and Selection of Suppliers
7. Selection of an Order Routine
C. ENHANCING the Relationships
8. Performance Feedback and Evaluation
A. Initiating the Relationship
(2)
- Recognition of Need
- Description of Desired Characteristics
B. Developing the Relationships
(5)
- Determination of Desired Characteristics
- Search and Qualification of Potential Sources
- Acquisition and Analysis of Proposals
- Evaluation of Proposals and Selection of Suppliers
- Selection of an Order Routine
C. Enhancing the Relationships
- Performance Feedback and Evaluation
Types of Buyer Needs:
- Situational Needs
- Functional Needs
- Social Needs
- Psychological Needs
- Knowledge Needs
e.g. I need a copier now BECAUSE I have a major project I need to complete.
Situational needs
e.g. I need a copier that SORTS AND STAPLES.
Functional needs
e.g. I need a state-of-the-art copier SO I WILL BE RECOGNIZED as of the technology-savvy people in this company.
Social needs
e.g. I need an EXTENDED WARRANTY with a copier.
Psychological needs
e.g. I need COMPREHENSIVE TRAINING on how to use a copier.
Knowledge Needs
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
Multi-Attribute Model
P x I = Attribute Score
P stands for
Assessment of Product or Supplier Performance
l stands for
Assessing the Relative Importance of Each Characteristic
Types of Purchasing Decisions:
- Straight Rebuy Buying Situation
- Modified Rebuy Buying Situation
- New Task Buying Situation
Type of purchasing decision that is Routinized Response Behavior
Straight Rebuy Buying Situation
Type of purchasing decision that is Limited Problem Solving
Modified Rebuy Buying Situation
Type of purchasing decision that is Extensive Problem Solving
New Task Buying Situation
Complex mix of business buyer needs
Functional attributes and Psychological attributes towards buyer’s level of satisfaction
Complex mix business buyer needs that is a “must haves”
37% level of influence on buyer’s satisfaction
Functional attributes
Complex mix business buyer needs that is a “delighters”
63% level of influence on buyers satisfaction
Psychological attributes
The process by which the salesperson adjusts his/her communication style to fit that of the customers in order to facilitate effective communication
Communication Style Flexing
Buying Center Members:
- Initiators
- Users
- Gatekeepers
- Influencers
- Deciders
- Purchasers
Current Developments in Purchasing:
• Target Pricing
• Supply Chain Management
• Relationship Emphasis on Cooperation and Collaboration
• Increasing Use of Information Technology
• Increased Importance of Knowledge and Creativity
