Module Three

Understanding Buyers
 Learning Objectives

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.

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Learning Objectives

4. Discuss the different types of buyer needs.

5. Describe how buyers evaluate suppliers
and alternative sales offerings by using the
multiattribute model of evaluation.
6. Explain the two-factor model that buyers
use to evaluate the performance of sales
offerings and develop satisfaction.

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Learning Objectives

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.

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Setting the Stage

Understanding the Buyer’s Needs

and Dreams is the Key to Success

1. To what did David Laube contribute

his success?
2. What is, and more importantly, why
does David hold a “discovery”
session with his clients?

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Categories of Buyers

Consumer Markets People (Personal Use)

Firms

Institutions
Business Markets
Governments
Non-Profit Organizations

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Distinguishing Characteristics of
Business Markets

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

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Buying Decision Process

Initiating
Initiating the
the Relationship
Relationship

Evaluation
Search
Acquisition
Determination
Selection
Recognition
Description
and
Evaluation
Search
Acquisitionof
ofQualification
&
Proposals
Determination
Selection
Recognition
Description
and of
Analysis
an
of
of
of
of &
Qualification
&Proposals
of
Analysis
an
of &
Performance
Performance Feedback
Feedback
Desired
Selection
of
of Potential
Order
of
ofthe
Desired
SelectionProposals
Characteristics
of
Need
Routine
Potential
Order
the Suppliers
Sources
Proposals
Characteristics
of
Need
Routine
Suppliers
Sources
and Evaluation
and Evaluation

Developing
Developing the
the Relationships
Relationships

Enhancing
Enhancing the
the Relationships
Relationships
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Buying Decision Process

Recognition
Recognition of
of Search
Search and
and Qualification
Qualification Selection
Selection of
of an
an
the Need
the Need of
of PotentialSources
Potential Sources Order Routine
Order Routine

Determination
Determination of
of Acquisition
Acquisition && Analysis
Analysis Performance
Performance Feedback
Feedback
Desired Characteristics
Desired Characteristics of Proposals
of Proposals and Evaluation
and Evaluation

Description
Description of
of Evaluation
Evaluation of
of Proposals
Proposals
Desired Characteristics
Desired Characteristics Selection of Suppliers
Selection of Suppliers

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 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.
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 The Needs Gap

Produce 1,250 Units Per Day

Desired State

Needs Gap
250 Units Per Day

Actual State
Produce 1,000 Units Per Day

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Types of Buyer Needs

• Situational Needs
• Functional Needs
• Social Needs
• Psychological Needs
• Knowledge Needs

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Multi-Attribute Model

Assessment of
The base score Product or Supplier
Performance (P)

Assessing the Relative

The weight Importance of Each
Characteristic (I)

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Multi-Attribute Model: an Example

Which Job Should I Take?

P I PxI
Compensation 8 .4 3.2
Score
Company A Location 3 .4 1.2
5.8
Training 7 .2 1.4

P I PxI
Compensation 3 .4 1.2
Score
Company B Location 9 .4 3.6
6.4
Training 8 .2 1.6

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 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

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Complex Mix of Business Buyer Needs

37%
Functional Level of Influence
On Buyers’ Satisfaction
Attributes
“Must-Haves”
Buyers’
Level of
Satisfaction
Psychological 63%
Attributes Level of Influence
“Delighters” On Buyers’ Satisfaction

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 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

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Characteristics of the
Three Types of Buying Decisions

Straight Modified New

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

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Buying Decision Types - Continuum

Straight Modified New

Rebuy Rebuy Task

Habitual and Routine Extensive Consideration

Decision Making and Decision Making

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Communication Styles Matrix
High
Responsiveness

Amiable Expressive
Relationship Oriented

Low High
Slow Paced Fast Paced
Assertiveness Assertiveness

Task Oriented
Analytical Driver

Low
Responsiveness
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 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 Create a Begin by finding

Ask specific, finding cooperative out the
Need fact-finding questions environment Expressive’s
Discovery questions in a leading to with an open perception of the
systematic what the driver exchange of situation and
manner. values and information vision of the
rewards. and feelings. ideal outcome.
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 Buying Center Members

• Initiators
• Users
The roles in the
• Gatekeepers buying center work
together to affects
• Influencers the outcome of the
purchase decision.
• Deciders
• Purchasers

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
 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

Professional Selling: Module 3: Ingram LaForge Avila

A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams