Understanding Buyers

1
Understanding Buyers

• Module Three

2
Understanding BuyersAn Experts Viewpoint
Nick LaRoche 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.
3
Understanding BuyersAn Experts Viewpoint
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.
4
Categories of Buyers
Firms Institutions Governments Non-Profit
Organizations
5
Distinguishing Characteristics of Business Markets

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

6
Buying Decision Process
Recognition ofthe Need
Search and Qualificationof Potential Sources
Selection of anOrder Routine
Determination of Desired Characteristics
Acquisition Analysisof Proposals
Performance Feedback and Evaluation
Description ofDesired Characteristics
Evaluation of ProposalsSelection of Suppliers
7
Needs Gap An Example from theLife of a College
Senior
I have a job.
8
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
9
Multi-Attribute Model an Example
On-line Resume Service
Campus Career Services
10
Employing Buyer Evaluation Procedures to Enhance
Selling Strategies

• Modify the Product Offering Being Proposed
• Alter the Buyers Beliefs about the Proposed
  Offering
• Alter the Buyers Beliefs about the Competitors
  Offering
• Alter the Importance Weights
• Call Attention to Neglected Attributes

11
Complex Mix of Business Buyer Needs
37 Level of Influence On Buyers Satisfaction
Must-Haves
Buyers Level of Satisfaction
63 Level of Influence On Buyers Satisfaction
Delighters
12
Characteristics of theThree Types of Buying
Decisions
Straight Rebuy
Modified Rebuy
New Task
13
Communication Styles Matrix
Amiable
Expressive
Analytical
Driver
14
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

15
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.
16
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