Module Three Understanding Buyers Understanding Buyers An Experts

Module Three Understanding Buyers

Understanding Buyers An Expert’s Viewpoint: Nick La. Roche is an account executive for S. K. K. R. , a manufacturers’ representative group selling Weber-Stephens Products. Nick makes an effort to understand his buyers and the way they do business. For example, Nick found a way to help one of his customers increase profits simply by changing the way they purchased Weber products. Action

Understanding Buyers An Expert’s Viewpoint: Result The amount Nick sold to this account soon doubled. The relationship between Nick and the buyer has continued to grow since the purchasing change. The buyer has realized increased sales revenue and profits while Nick has enjoyed watching this account grow in total volume.

Categories of Buyers Consumer Markets Business Markets Firms Institutions Governments Non-Profit Organizations

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

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

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

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

Multi-Attribute Model: an Example Networking Opportunities On-line Resume Exposure Service of Resume Quality Control Networking Opportunities Campus Career Exposure Services of Resume Quality Control P I Px. I 4 . 5 2 8 . 3 2. 4 4 . 1 P I Px. I 8 . 5 4 4. 8 . 4 4 . 3 1. 2 6 . 1 . 6 5. 8

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

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

Characteristics of the Three Types of Buying Decisions Straight Modified Rebuy Newness of Problem or Need Information Requirements Information Search Consideration of New Alternatives Multiple Buying Influence Financial Risks Low Minimal None Very Small Low Medium Moderate Limited Moderate New Task High Maximum Extensive Large High

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

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

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.

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