Understanding Buyers
3
Understanding
Buyers
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duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
LEARNING OUTCOMES
1 Categorize primary types of buyers
2 Discuss the distinguishing characteristics of
business markets
3 List the different steps in the business-to-
business buying process
4 Discuss the different types of buyer needs
5 Describe how buyers evaluate suppliers and
alternative sales offerings by using the
multi-attribute model of evaluation
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Learning Objectives
LEARNING OUTCOMES (continued)
6 Explain the two-factor model that buyers
use to evaluate the performance of sales
offerings and develop satisfaction
7 Explain the different types of purchasing
decisions
8 Describe the four communication styles and
how salespeople must adapt and flex their
own styles to maximize communication
9 Explain the concept of buying teams and
specify the different member roles
10 Understand means of engaging customers
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Types of Buyers
Consumer market
• Consumers purchase goods and services for
their use or consumption
Business market
• Firms, institutions, and governments acquire
goods and services for their own use or for
resale to their customers
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Characteristics of Business
Markets
• Concentrated demand
• Derived demand
• Higher levels of demand fluctuation
• Purchasing professionals
• Multiple buying influences
• Collaborative buyer-seller relationships
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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
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Figur
3.2 The Needs Gap
e
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Figur
3.3 Complex Mix of Business
e Buyer Needs
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Ethical Dilemma
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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
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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
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Multiattribute Model
• Used for evaluating suppliers and products
• Incorporates weighted averages across
desired characteristics
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Exhib 3.5 Weighted Averages for Performance (P)
it Times Importance (I) and Overall
Evaluation Scores
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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
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Figur
3.4 The Two-Factor Model of
e Buyer Evaluation
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Exhib
3.6 Three Types of Buying
it Decisions
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Figur
3.5 Continuum of Types of Buying
e Decisions
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Figur 3.6 Comparison of the Principal Characteristics
e of Assertiveness and Responsiveness
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Figur
3.7 Communication Styles Matrix
e
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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
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Buying Teams (Buying Centers)
Combine the expertise and multiple buying influences of
people from different departments throughout the
organization
Initiators Influencers
Users Roles Gatekeepers
Deciders Purchasers
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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
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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
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KeyKEY
Terms
TERMS
•Consumer market •Psychological needs
•Business market •Knowledge needs
•Derived demand •Requests for
•Acceleration principle proposals
•Desired states (RFP)
•Actual states •Multiattribute model
•Needs gap •Competitive
•Situational needs
depositioning
•Functional needs
•Two-factor model of
•Social needs evaluation
•
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KeyKEY
Terms
TERMS(continued 1)
•Psychological •Amiables
•Expressives
attributes
•Drivers
•Delighter attributes
•Analyticals
•Straight rebuy
•Competitive
decision
•Electronic data depositioning
interchange
•Two-factor model of
•New task decision evaluation
•Modified rebuy •Buying teams
decisions
•Initiators
•Assertiveness
•Influencers
•Responsiveness
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KeyKEY
Terms
TERMS(continued 2)
•Users
•Deciders
•Purchasers
•Gatekeepers
•Outsourcing
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Summary
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
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Summary
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
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Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SELL5 | CH3 29
