2 | Understanding Buyers LEARNING OBJECTIVES er completing th rape you shoud be able to: “ee © vets tne pert tee tapen ne ‘evaluate the performance of sales offerings and @ deve ve cengting hance ot Scat ton tom at Explain the diferent types of purchasing decisions, @ six: the sisferent steps inthe business-to-business poe aie sti : salespeople must adapt and flex their own styles to @ vem tren gps genet taste ommutdon Describe how buyers evaluate suppliers and Explain the concept of buying teams and specify ® alternative sales offerings by using the multatebute rn ee @] vecersand means for engaging customers,Exhibit 2.1 Different Needs of Different Athletic Shoe Buyers ort eee eatery ere ery eteeaore Functional * Hasthe features customers © Individualized sole * Offerstheleadingedge | Needs want texture for different player _in shoe features ' + Well constructed— performance needs © Prominentbrandtogo fl minimizes returns * Perfect fitandsizeforeach — Highest-priced shoes '* Offers point-of-sale team member in the store displays for store use ‘© Custom match with * Competitive pricing university colors * Size of supplier's payment t to. coach and school for é using their shoes i | Situational ‘© Cansupply'stores across Ability todeliver on time ‘© Right sizein stock ready Needs North America * Provide supplier personnel to carry out ‘ '® Ability to ship to individual for team fittings ® Takes Visa and MasterCard stores on a just-in-time © Make contract payments | basis to university and coach at ‘ | © Offers 90-day trade credit beginning of season t Social Needs © Invitation for buying team — © Sponsor and distribute © Offers user-group E toattend trade show: shoes at annual team shoe newsletter to upscale ' and supplier-sponsored night to build enthusiasm customers reception © Include team and © Periodic mailings for new athletes in supplier brand products and incentives 2 promotions to purchase Psychological» Assurance that shoes will * Brand name consistent with * Reinforces customer's self- ' Needs sell at retail players’ self-images ‘image asaninnovator * Brand name with strong _-¢ Theentie team willaccept © Product willdeliverthe | market appeal andbe enthusiastictoward promised performance ‘* Option to return unsold . _Productdecision '* Oneofonlyafew people | goods for credit ‘© Belief that the overall having purchased this | contractis best for the style of shoe | university, team, and coaches : ' | Knowledge '® Level of quality—how the * What makes the shoe ‘* What makes the shoe | Needs shoe is constructed unique and superior to unique and superior to i * Howthe new features competitive offerings competitive offerings | impact performance © Supporting information '® Assurance that everybody | ¢ What makes the shoe ‘and assurance that the onthe courtwillnotbe | unique and superior to contracted payments to wearing thesameshoe | competitive offerings university and coaches are ; orto competitive ' * Product training and — : materials for sales staff a J MS ER ROR ETE = 24 CHAPTER 2: Understanding Buyerson insight gathered by different departments within Philips around the world. “We want to connect sales, ser- vice, marketing, and anyone that’s customer-facing with Salesforce so we can share best practices and pockets of excellence. We also want to give our R&D, supply chain, and product groups insight into evolving customer needs and opportunities,” says Van Gils. Salesforce’s Chatter collaboration software enables Philips’ salespeople, engineers, and service technicians to share information and collaborate across time zones to more fully understand customer needs. Additionally, Philips is using Marketing Cloud by Salesforce to gain a deeper understanding of customers by engaging them on social channels. “To be a customer-centric company, you need to listen to your customers every day, and—since listening alone isn’t enough—you need to have a dia- logue with them,” claims Van Gils. According to Jeroen ‘Tas, CEO of Informatics Solutions and Services, Philips Healthcare, “Whether it’s lighting or healtheare devices, ultimately we want to create a better, healthier world and improve people's lives, by better understanding of our customers and consumers, Salesforce is helping us.”! As the opening vignette illustrates, understanding customers is necessary to succeed in today’s highly com- petitive global marketplace. At Philips, understanding the unique needs of each customer allows salespeople to tailor specific solutions for those needs. In doing so, salespeople are able to bring about value for these customers. This chapter focuses on preparing you to better understand buyers. Following a discussion on differ- ent types of buyers, this chapter develops a model of the buying process and the corresponding roles of the salesperson. Buyer activities characteristic to each step of the purchase decision process are explained and re- lated to salesperson activities for effectively interacting 25 (CHAPTER 2: Understanding Buyerswith buyers, This is followed by an explanation of differ- ent types of purchasing decisions to which salespeople ‘must respond. The influence of individual communica tion styles on selling effectiveness is also discussed. The ‘growing incidence of multiple buying influences and buying teams is then demonstrated, along with their impact on selling strategy. Finally, means for engaging buyers—such as focusing on the customer experience, ‘making relevant information easily accessible to buyers, and adding value demanded by buyers—are discussed from the perspective of the salesperson, TYPES OF BUYERS ‘work and interact with many different types of buyers. These buyer types range from heavy industry and manufacturing operations to consumers making a purchase for their own use. These variants of customer types arise out of the unique buying situations they oc- cupy. As a result, one type of buyer will have needs, ‘motivations, and buying behavior that are very differ- ent from another type of buyer. Consider the different ‘buying situations and the resulting needs of a corporate buyer for Foot Locker compared with the athletic equip- ment buyer for a major university or Joe Smith, attomey ‘at law and weekend warrior in the local YMCA’s basket- ball league. As illustrated in Exhibit 2.1, each of these buyers may be looking for athletic shoes, but their buy- ing needs are very different. To maximize selling effec tiveness, salespeople must understand the type of buyer with whom they are working and respond to their spe- cific needs, wants, and expectations. ‘The most common categorization of buyers splits them into either the (1) consumer market or (2) business market. Consumers purchase goods and services for their ‘own use of consumption and are highly influenced by peer group behavior, aesthetics, and personal taste. Business markets are composed of firms, institutions, and _govern- ments, These members of the business market acquire goods and ser | po their own manufacturing process (e.g., raw mate- rials, component parts, 26 CHAPTER 2: Understanding Buyers vices to use as inputs into _| and capital equipment), for use in their day-to-day op- centions (eg. office supplies, professional services, in- surance), oF for resale to their own customers. Business customers tend to stress overall value as the cornerstone for purchase decisions. @ DISTINGUISHING CHARACTERISTICS OF BUSINESS MARKETS Although there are similarities between consumer and business buying behaviors, business markets tend to be much more complex and possess several characteris- ttics that are in sharp contrast to those of the consumer market. These distinguishing characteristics are de- seribed in the following sections. 22a Concentrated Demand Business markets typically exhibit high levels of concen- tration in which a small number of large buyers account for most of the purchases, The fact that business buyers tend to be larger in size but fewer in numbers can greatly {impact a salesperson’s selling plans and performance. For example, a salesperson selling high-grade industrial slicon for use in manufacturing computer chips wil find that his or her fate rests on acquiring and nurturing the business of one or more ofthe four or five dominant chip makers around the world. 22» Derived Demand Derived demand denotes that the demand in busi- ness markets is closely associated with the demand for ‘consumer goods. When the consumer demand for new ‘ars and trucks increases, the demand for rolled steel also goes up. OF course, when the demand for con- sumer products goes down, so goes the related demand in business markets. The most effective salespeople ‘dentify and monitor the consumer markets that are related to their business customers so they can better anticipate shifts in demand and assist their buyers in staying ahead of the demand shifts rather than being caught with too much, too little, or even with the wrong inventory. Republic Gypsum’ salespeople accurately forecasted a boom in residential construction and the pressure it would put on the supply of plasterboard. ‘Working closely with their key customers, order quan- tities and shipping dates were revised to prevent thosecustomers from being caught with inadequate invento- ries to supply the expanded demand. This gave those ‘customers a significant competitive advantage over their competitors, who were surprised and suddenly ‘out of stock. * 2-2¢ Higher Levels of Demand Fluctuation Closely related to the derived demand characteristic, the demand for goods and services in the business mar- ket is more volatile than that of the consumer market. In economics, this is referred to as the acceleration principle. As demand increases (or decreases) in the consumer market, the business market reacts by ac- celerating the buildup (or reduction) of inventories and increasing (or decreasing) plant capacity. A good ‘example would be the rapidly growing demand for smartphones with advanced capabilities such as induc- tive wireless charging and larger screens. In response to higher consumer demand, wholesalers and retail- crs are increasing their inventories of these advanced phones while decreasing the number of wired charging small screen devices they carry. In response, manufac- turers have shifted their production towards these im- proved models. Salespeople are the source of valuable information and knowledge, enabling their customers to anticipate these Auetuations and assisting them in developing more effective marketing strategies. As a result, both the buying and selling organizations realize mutual positive benefits. 2-24 Purchasing Professionals Buyers in the business markets are trained as purchas- ing agents. The process of identifying suppliers and sourcing goods and services is their job. This results in a ‘more professional and rational approach to purchasing, AAs a result, salespeople must possess increased levels of knowledge and expertise to provide customers with a richer and more detailed assortment of applica- tion, performance, and technical data. 2-2e Multiple Buying Influences Reflecting the increased complesity of many busi- ness purchases, groups of individuals within the buying firm often work together as a buying team or center. As a result, sales- people often work simultaneously with several indi- viduals during. sales call and even different sets of buyers during different sales calls. Buying team mem- bers come from different areas of expertise and play different roles in the purchasing process. To be effec- tive, the salesperson must first identify, then under- stand and respond to, the role and key buying motives of each member. 22¢ Collaborative Buyer-Seller Relationships The smaller customer base and increased usage of supply chain management, characterized by the strategic coordination and integration of purchasing with other functions within the buying organization as well as'external organizations, has resulted in buy- cers and sellers becoming much more interdependent than ever before. This increased interdependence and desire to reduce risk of the unknown has led to an em- phasis on developing long-term buyer-seller relation- ships characterized by increased levels of buyer-seller interaction and higher levels of service expectations by buyers. Rather than competing to win benefits at the ex- pense of one another, leading organizations are discov- ‘ering that it is possible for all parties to reduce their risk and increase the level of benefits each receives by sharing information and coordinating activities, resources, and capabilities? For instance, Wal-Mart and Sam's Club stores share information with suppli- ers on the products they supply. Procter & Gamble synchronizes its product data with Wal-Mart, saving it (CHAPTER 2: Understanding Buyers28 aan estimated $1 million annually? These longer-term buyer-seller relationships are based on the mutual benefits received by and the interdependence between all parties in this value network. In addition to being keenly aware of changing customer needs, collabora- tive relationships require salespeople to work closely with buyers to foster honest and open two-way com- munication and develop the mutual understanding re- quired to create the desired solutions. This suggests that salespeople understand the buyer's customers to determine how to help the buyer succeed by better serving their customers. Such understanding provides insights to challenges facing the buyer, enhances the salesperson’s credibility, and helps to establish a strong business partnership.‘ Further, salespeople must con- sistently demonstrate that they are dependable and acting in the buyers best interests. THE BUYING PROCESS Although not always the case in the consumer mar- ketplace, buyers in the business marketplace typically tundergo a conscious and logical process in making purchase decisions. As depicted in Figure 2.1, the se- quential and interrelated phases of the business buy- er’s purchase process begin with (1) recognition of the problem or need, (2) determination of the characteris- tics of the item and the quantity needed, (3) description of the characteristics of the item and quantity needed, (4) search for and qualification of potential sources, (5) acquisition and analysis of proposals, (6) evaluation cof proposals and selection of suppliers, (7) selection of aan order routine, and (8) performance feedback and evaluation, Depending on the ‘nature of the buying organiza- tion and the buying situation, the buying process may >be highly formalized or simply a rough approximation of what actually occurs. The decision process General Motors employs for the acquisition of a new organization- wide computer system will be highly formalized and purposefully reflect each of the previously described de- ‘cision phases. Compared with General Motors, the deci- ‘sion process of Bloomington Bookkeeping, a single office and four-person operation, could be expected to use a less formalized approach in working through their buying decision process fora system. In the decision to replenish stock office supplies, both of the organizations are likely to use a much less formalized routine—but stil, a routine that reflects the different decision phases. (CHAPTER 2: Understanding Buyers As Figure 2.1 further illustrates, there isa close cor- respondence between the phases of the buyer's decision. process and the selling activities of the salesperson. It is important that salespeople understand and make use of the fiterrelationships between the phases of the buy- ing process and selling activities. Effective use of these interrelationships offers salespeople numerous opportu nities to interact with buyers in a way that guides the shaping of produet specifications and the selection of sources while facilitating the purchase decision. 23a Phase One—Recognition of the Problem or Need: The Needs Gap Needs are the result of a gap between buyers’ desired states and their actual states. Consequently, need ‘recognition results when an individual cognitively and ‘emotionally processes information relevant to his or her actual state of being and compares it to the desired state of being. As illustrated in Figure 2.2, any perceived difference, or needs gap, between these two states activates the motivation or drive to fill the gap and reach the desired state. For example, the SnowRun- ner Company's daily production eapacity is limited to 1,000 molded skimobile body housings. Their research indicates that increasing capacity to 1,250 units per day ‘would result iti significant reductions in per-unit costs and allow them to enter additional geographic ma keets—both moves that would have significant and posi- “tive impacts on financial performance. The perceived need to expand production activates a corresponding motivation to search for information regarding alterna- tive solutions and acquire the capability to increase pro- duction by 250 units. However, ifthere is no gap, then there is no need and. no active buying motive. Itis common for salespeople to find themselves working with buyers who, for one reason co another, do not perceive a needs gap to be present. It is possible that they do not have the right informa- tion or ack a full understanding of the situation and the ‘existence of options better than their current state. It is also possible that their understanding of the actual state might be incomplete cor mistaken. For example, SnowRunners buyers might not understand the cost reduction. possibili- ties and inereased market potential that could result from increased capacity. ‘As a result, they perceivePS SSeS es Se EMIT sdat] STEPS IN THE SELLING PROCESS Business Buyers’ Buying Process The Selling Process ern eae) hts eur ecu eCard eke anc tation Seer) ee cto quisition and Analysis salle Enhancing Customer Relationships Prue eet cen Pea jue through ee CHAPTER 2: Understanding Buyers 2930 Desired State Produce 1,250 units per day no need to increase production—the desired state is the same as their actual state. Similarly, the buyers might be functioning with incomplete information regarding the ‘Runner's existing molding machines requiring increased downtime for ‘maintenance. Properly realized, this lowering of the actual state would result in a needs gap. Successful salespeople position themselves, to assist buyers in identifying and understanding needs as a result of their broader expertise and knowl- edge regarding product use and application. Salespeople can also use sales conversations to present buyers with information and opportunities that effectively raise the desired state, generate a need, and trigger the purchase decision process, Top-performing salespeople under- stand the importance of assisting their buyers in forming realistic perceptions of the actual state and the desired state. In this manner, the salesperson can continue to serve as a nonmanipulative consultant to the buyer while affecting buying motives that yield mutual benefits to all parties, However, it should be noted that the persuasive power of assisting the buyer in determining and compar- ing desired and actual states can also be misused and lead to unethical and manipulative selling behaviors such as those exhibited in “An Ethical Dilemma.” TYPES OF BUYER NEEDS ‘The total number of potential customer needs is inf- nite and sometimes difficult for salespeople to grasp and understand on a customer-by-customer basis. Consequently, many salespeople find it helpful to group customer needs into one of five basic types or companys actual state of reduced production capacity due to Snow- [Busines buyers typically undergo a conscious and logical CHAPTER 2: Understanding Buyers The needs gap Is the difference between the buyer's perceived desired state and the buyer's perceived actual state, categories that focus on the buying situation and the benefits to be provided by the product or service be- ing chosen’ These five general types of buyer needs process in making while traveling ut of town, 2 aa piece of customized production purchase decisions. are described as follows: + Situational needs are the specific needs that are contingent on, and often a result of, conditions related to the specific environment, time, and place (eg, emergency car repair equipment to fulfil a customer's specific situational requirements, cor providing for quick inital shipment to meet a buyers outof-stock status) Functional needs represent the need fora specific core task or function to be performed—the functional purpose ofa specific product or service. The need for a sales offering to do what itis supposed to do (e.g. alcohol disinfects, switches open and close to control some flow, the flow control valve is accurate and reliable). Social needs are the need for acceptance from and association with others—a desire to belong to some reference group. For example, a product or service might be associated with some specific and desired affinity group or segment (e, Polo clothing s associated with upper-income, successful people; 180 9000 Certification Is associated with high-quality vendors; leading e-commerce Web sites include discussion groups to build a sense of community). punBa ee An Ethical Dilemma Bob Labels is a sales representative fora firm that manufactures and sells various packaging machines. Bob is i meeting with a prospect, Andrew Ale, ‘who Is a purchaser for a midsized beer ‘manufacturer looking to expand its. business, Thus, the company is in need of an additional bottle labeler. The bottle labeler currently used by the company was bought at auction several years ago. Having found Bobs company on the Internet, ‘Andrew contacted Bob and they set up a meeting at Andrew's office. Upon assessing Andrew's needs, Bob determined that Andrew was looking for a roll-fed bottle labeler carable of labeling up to 1,200 bottles per minute. This concerned Bob because the fastest bottler he carried as capable of labeling only up to 1,000 bottles per minute. Currently, Andrew's company was not running at full capacity, but he felt he would need this capability in the near future to meet expected demand. While Bob knew his labeler would work fine for the near future, he also knew that given Andrew's future needs, a faster bottler would actually be the most beneficial purchase. Bob really ‘wanted to make this sale as it would be instrumental in him achieving a ‘bonus. The bonus would be particulaily Useful to help Bob pay the hospital bills associated with his wife's cancer. Bob believes that he could work with ‘Andrew to get him to reassess his needs and convince him that the machine he has to offer will be quick enough to meet production needs now and.in the future; particularly given that there is no ‘guarantee of an expected growth in sales. Bob surmises that if Andrew's company outgrew this labeler, they ould always purchase an additional labeler from him down the road. What should Bob do? a) Try to convince Andrew that he does not need a labeler that does 1,200 labels per minute. b)_ Suggest an alternate label machine supplier and ask Andrew to keep him in mind for additional packaging machinery needs. ©) Refer to his company’s code of conduct and/or contact his sales manager and ask for advice. + Psychological needs refect the desire foc feelings of assurance andrsk eduction, as well as postive emotions and feeling such as success, jo, excitement, and stimulation (eg, a Mont Blanc pen generates afeling of success effective training programs create a sense of self-control and determination; selection and use of wellknown, high- ‘quality brands provide assurance to buyers and ‘organizations alike). + Knowledge needs represent the desire for personal develop- ment. information, and knowledge to increase thought and understanding as to how and why things. happen (e4, product information, newsletters, brochures, ‘and training and user support group meetings/confer- ‘ences provide current information on products and topics of interest Categorizing buyer needs by type can assist the sales person in bringing order to what could otherwise be a confusing and endless mix of needs and expectations. Or- ganizing the buyer's different needs into their basic types ccan help salespeople in several ways, First, as Exhibit 2.1 and the example worksheet in Exhibit 2.2 illustrate, the basic types can serve as a checklist or worksheet to ensure that no significant problems or needs have been over. looked in the process of needs discovery: Organizing what at first might appear to be different needs and problems CHAPTER 2: Understanding Buyers 317Exhibit 2.2 Example Worksheet for Organizing Buyer Needs and Benefit-Based Solutions Primary Buyer: Bart Waits Buying Organization: Primary industry: into their common types also helps the salesperson bet- ter understand the nature of the buyer’s needs along with the interrelationships and commonalities between them. Intum, this enhanced understanding and the framework of basic types combine to serve as a guide for salespeople in generating and then demoistrating value-added solu- tions in response to the specific needs of the buyer. ‘As previously discussed, the specific circumstances or types of solution benefits that a buyer is seeking should determine a salesperson's strategy for working with that buyer. Consequently, it should be noted that the needs of business buyers tend to be more complex than consum- ers’ needs. As with consumers, organizational buyers are people and are influenced by the same functional, social, psychological, knowledge, and situational experiences and forces that affect and shape individual needs. How-, ever, in addition to those individual needs, organizational buyers must also’satisfy the needs and requirements of the organization for which they work. As Figure 2.3 de- picts, these organizational needs overlay and interact 32 CHAPTER 2: Understanding Buyers ‘SouthWest Metal Stampings ‘Stamped Metal Parts and Subcomponents Buyer'sSituationalNeeds _* Requires an 18 percent increase in production to meet increased sales * On-hand inventory will not meet production/delivery schedule ‘+ Tight cash flow pending initial deliveries and receipt of payment Buyer'sFunctional Needs _—_® Equipment to provide effective and efficient increase in production ‘+ Expedited delivery and installation in six weeks or less + Equipment financing extending payments beyond intial receipts Buyer's Social Needs ‘Expansion in production transforms them into top 10 in industry ‘ Belonging to user group of companies using this equipment ‘* Feeling that they are an important customer of the supplier Buyer's Psychological Needs _* Confidence that selected equipment will meet needs and do the job ‘* Assurance that seller can complete installation in six weeks '» Saving face—to believe borrowing for equipment is common Buyer's Knowledge Needs ‘Evidence that this the right choice * Understanding new technology used by the selected equipment ‘Training program for production employees and maintenance staff with the needs of the individual. To maximize selling ef- fectiveness in the organizational or business-to-business ‘market, salespeople must generate solutions addressing. both the individual and organizational needs of business buyers. For more on the importance of understanding, ‘aistomer needs see “From the Classroom to the Field: ‘The Importance of Understanding Buyer Needs.” 24a Phase Two—Determination of the Characteristics of the Item and the Quantity Needed Coincident to recognizing a need or problem is the motivation and drive to resolve it by undertaking a search for additional information leading to possible “solutions. This particular phase of the buying process involves the consideration and study of the overall situation to understand what is required in the form of « preferred solution. This begins to establish theFIG. 2.3 Core rr Functional ro Functional _ oo ERR RR eRRRNREEE TE A business buyer's needs are a combination of the buyer's individual needs and the organization's needs. general characteristics and quantities necessary to resolve the need or problem. Through effective sales dialogue, salespeople use their knowledge and exper- tise at this point to assist the buyer in analyzing and interpreting the problem situation and needs. Sales- people offer valuable information about problem situations and solution options that buyers typically perceive as beneficial. From the Classroom to the Field The Importance of Understanding Buyer Needs Brett Eiskina graduated from the University of Central Missouri in May 2012 and is a corporate acquisition account executive at Sprint Nextel. Brett discusses the importance of understanding buyer needs. Throughout my seven years of professional sales, | have sold in both business and consumer markets At first thought, you might think that the two are completely different sales cycles with different approaches. However, the sales cycle itself is almost the ‘exact samie for each buyer in each market: In my college sales classes, we learned how to identify customer, needs. in my opinion, the single most important step in understanding the buyer is finding his or her specific needs. Tis step Is what separates the good salespeople from the great salespeople, In the business world, different decision makers have different needs that are usually more specific to their title within the company. For example, what is important to a CFO may not be nearly as important to a COO or a CIO, so itis up to you as a salesperson to be able to accurately determine. what is important to the decision maker you are pitching. Most of the time, if you can accurately identity and solve that buyer’s most important needs, then you will get the sale. CHAPTER 2: Understanding Buyers 3334 24> Phase Three—Description of the Characteristics of the Item and the Quantity Needed Using the desired characteristics and quantities devel- ‘oped in the previous phase as a starting point, buyers translate that general information into detailed specifica tions deseribing exactly what is expected and required. ‘The determination of detailed specifications serves sev- eral purposes. First, detailed specifications guide supplier firms in developing their proposals. Second, these speci- fications provide the buyer a framework for evaluating, comparing, and choosing among the proposed solutions. Postpurchase specifications serve as a standard for evala- ation to ensure thatthe buying firm receives the required product features and quantities. Trust-based buyer-seller relationships allow salespeople to work closely with buy- ers and collaboratively assist them in establishing the detailed specifications of the preferred solutions, Such is the case, for instance, with consumer packaged goods company Procter and Gamble, who even located offices near Wal-Mart's headquarters in Bentonville, Arkansas, to ‘work more collaboratively with the world’ largest retailer. 2-4c Phase Four—Search for and Qualification of Potential Sources Next, buyers must locate and qualify potential suppliers capable of providing the preferred solution. Although buyers certainly utilize information provided by salespeo- ple to identify qualified suppliers, there is an abundance of information available from other sources, such as trade ‘associations, product source directories, trade shows, the Internet, advertising, and word of mouth. Once identi- fied, potential suppliers are qualified on their ability to perform and deliver consistently atthe level of quality and quantity required. Due to the large number of informa- tion sources available to buyers researching potential sup- pliers, one of the most important tasks in personal selling is to win the position of one of those information sources ‘and keep buyers informed about the salesperson’s com- ‘pany, its new products, and solution capabilities. 24d Phase Five—Acquisition and Analysis of Proposals Based on the detailed specifications developed in phase three, requests for proposals (known in the trade as an RFP) are developed and distributed to the quali- fied potential suppliers. Based on the RFP, qualified suppliers develop and submit proposals to provide the (CHAPTER 2: Understanding Buyers products as specified. Salespeople play a critical and influential role in this stage of the buying process by developing and presenting the proposed solution to the buyers. In this role, the salesperson is responsible for presenting the proposed features and benefits in such a manner that the proposed solution is evaluated 4s providing higher levels of benefits and value to the buyer than other competing proposals. Consequently, it is imperative that salespeople understand the ba- sic evaluation procedures used by buyers in compar ing alternative and competitive proposals so they can be more proficient in demonstrating the superiority of their solution over the competition. PROCEDURES FOR EVALUATING SUPPLIERS AND PRODUCTS Purchase decisions are based on buyers’ comparative evaluations of suppliers and the products and services they propose for satisfying buyers’ needs. Some buy- cers might look for the sales offering that receives the highest rating on the one characteristic they perceive as being most important. Others might prefer the sales offering that achieves some aécept- able assessment score across every attribute desired by the buyer. However, research intoExhibit 28 Important Product Information Ease of application Excellent Bonding time 8 minutes Durability Toyears Reliability Very good Nontoxic Very good ‘Quoted price $28 per gallon Shetf-life in storage 6 months Service factors Good how purchase decisions are made suggests that most buyers use a compensatory, multiattribute model incorporating weighted averages across desired char- acteristics These weighted averages incorporate (1) assessments of how well the product or supplier performs in meeting each of the specified characteris- tics and (2) the relative importance of each specified _ characteristic to the buying firm. 25a Assessment of Product or Supplier Performance The first step in applying the multiattribute model is to rate objectively how well each characteristic of the competing products or suppliers meets the buy- er’s needs. Let us use the example of General Motors (GM) evaluating adhesives for use in manufacturing ‘The buyers have narrowed the alternatives to prod- ucts proposed by three suppliers: BondIt #302, AdCo #45, and StikFast #217. As illustrated in Exhibit 2.3, the GM buyitig team has assessed the competitive products according to how well they perform on certain important attributes. These assessments are converted to scores as depicted in Exhibit 2.4, with scores ranging from 1 (very poor perfor- manée) to 10 (excellent performance). 10 minutes 12 minutes 12 years 1S years Excellent Good Excellent Very good $22 per gallon $26 per gallon ‘months 4 months Excellent As illustrated, no single product is consistently outstanding across each of the eight identified char- acteristics. Although Bondlt #302 is easy to apply and uses the buyer's current equipment, it is also more expensive and has the shortest durability time in the field. StikFast #217 also scores well for ease of appli- cation, and it has superior durability. However, it has the longest bonding time and could negatively influ- ‘ence production time. 2b Accounting for Relative Importance of Each Characteristic To compare these performance differences properly, ‘each score must be weighted by the characteristic’s per- ceived importance. In the adhesive example, importance ‘weights are assigned on a sale of 1 (relatively unimport- ant) to 10/(very important). As illustrated in Exhibit 2.5, ‘multiplying each performance score by the correspond- ing attribute's importance weight results in a weighted average that can be totaled to calculate an overall rat- ing for each product. Keep in mind that each alternative product generally must meet a minimum specification on each desired product characteristic for it to be con- sidered. The product or supplier having the highest comparative rating is typically the product selected for purchase. In this example, AdCo has the highest overall evaluation, totaling 468 points, compared with BondIt’s 430 points and StikFast’s 446 points. In some cases, the (CHAPTER 2; Understanding BuyersExhibit 2.4 Product Performance Scores Ease of application 10 Bonding time Durability Reliability Nontoxic Quoted price Shetf-life in storage Service factors buyer may bé focusing on one characteristic as being the most important and will choose the seller that performs best on that characteristic, assuming that minimum per formance specifications are met across all other criteria In the GM example, if “durability” were the most impor- tant characteristic, with a minimum performance spect- fication of “4” for all other criteria, then StikFast #217 would be chosen. Exhibit 2.5 Weighted Averages for Performance (P) Times Importance (I) and Overall Evaluation Scores 5 8 6 4 8 9 10 5 10 8 j 9 7 6 6 10 camo ore cnet 2-5¢ Employing Buyer Evaluation Procedures to Enhance Selling Strategies Understanding evaluation procedures and gaining in- sight as to how a specific buyer or team of buyers evalu- ates suppliers and proposals is vital for the salesperson to be effective and requires the integration of several bases of knowledge. First, information gathered prior Ease of application 10 8 80 3 8 40 8 8 72 Bonding time 8 6 48 6 6 36 4 6 4 Durability 6 9 54 8 9 7 9 9 81 Reliability 8 7 56 We ow ok 70 5 # 35 Nontoxic eae ee Cee Quoted price 5 10 50 9 10 90 7 10 70 Shelflife in storage 9 54 6 6 36 6 6 36 Service factors 5 40 8 8 64 10 8 80 | Overall evaluation score. 430 468 446 | ~oememremesnee 36 CHAPTER 2: Understanding Buyersto the sales call must be combined with an effective needs-discovery dialogue’ with the buyer(s) to delineate the buyer's needs and the nature of the desired solution, This establishes the most likely criteria for evaluation. Further discussion between the buyer and seller can be- sgn to establish the importance the buyer's place on each of the different performance criteria and often yields in- formation as to what suppliers and products are being considered. Using this information and the'salesperson’ knowledge of how his or her produets compare with competitors’ offerings allows the silesperson to com- plete a likely facsimile of the buyer's evaluation. With this enhanced level of preparation and understanding, the salesperson can plan, create, and deliver a more ef- fective presentation using the five fundamental strate- gies that are inherent within the evaluation procedures buyers use. + Modify the Product Offering Being Proposed. Often, in the course of preparing or delivering a resentation, it becomes apparent that the product offering will not maximize the buyer's evaluation score in comparison with a competitor's offering. In this case, the strategy would be to modify or change the product to one that better meets the buyer's overall needs and thus would receive a higher evaluation. For example, by developing 2 better understanding of the adhesive buyer's perceived importance of certain characteristics, the Bondit salesperson could offer a different adhesive formulation that is not as easy to apply (low perceived importance) but offers improved durability (high perceived importance) and more competitive price (high perceived importance). * Alter the Buyer's Beliefs about the Proposed Offering, Provide information and support to alter the buyer's beliefs as to where the proposed product stands on certain attributes. This is a recommended strategy for cases in which the buyer underestimates the true qualities of the proposed product. However, if the buyer's perceptions are correct, this strategy would encourage the salesperson to exaggerate and ‘overstate claims and, thus, should be avoided. In the instance of Bondit #302's low evaluation score, the salesperson could offer the buyer information and ‘evidence that the product's durability and service factors actually perform much better than the buyer initially believed, By working with the buyer to develop a more realistic perception of the product's performance, Bondit #302 could become the buyer's preferred choice. *+ Alter the Buyers Beliefs about the Competitors Offering. Fora variety of reasons, buyers often mistakenly believe that a competitors offering has higher level attributes or qualities than it actually does. n such an instance, the salesperson can provide information to evidence a more accurate picture of the competitor's attributes. This has been referred to 2s competitive depositioning and is carried ‘out by openly comparing (not simply degrading) the competing offering’s attributes, advantages, and weaknesses. As an illustration, the Bondi salesperson might demonstrate the total cost for each of the three Product alternatives, including a quoted price, ease of application, and bonding time. Bondit is much eas to.apply and has a faster bonding time. Consequently ess of it needs to be applied for each application, which results ina significantly lower total cost and a much improved evaluation score. ‘+ “Alter the Importance Weights. In this strategy, the salesperson uses information to emphasize and thus increase the importance of certain attributes on which the product offering is exceptionally strong, in the case of attributes on which the offering might be short, the strategy would be to deemphasize their importance. Continuing the adhesive purchase decision, Bondit’s salesperson might offer information to influence the buyer's importance rating for ease of application and storage shelf-life—two characteristics in which Bondit is much stronger than the two competitors. * Call Attention to Neglected Attributes. In the case jn Which it becomes apparent that significant attributes may have been neglected or overlooked by the ‘buyer, the salesperson can inctease the buyer's ‘evaluation ofthe proposed offering by pointing out the attribute that was missed, For instance, the Bondit #302 adhesive dries to an invisible, transparent, and semiflexible adhesive compared with the two competitors, which cure toa light gray color that could detract from the final product in eases in which the adhesive flowed out of the joint. he appearance ‘of the final product is a significant concern, and this neglected attribute could substantially influence the comparative evalu 2-54 Phase Six—Evaluation of Proposals and Selection of Suppliers The buying decision is the outcome of the buyer's evaluation of the various proposals acquired from po- tential suppliers. Typically, further negotiations will be conducted with the selected supplier(s) for the pur- ose of establishing the final terms regarding product ‘CHAPTER 2: Understanding Buyers 3738 characteristics, pricing, and delivery. Salespeople play a central role in ‘guining the buyer's commitment to the purchase decision and in the subsequent negotia- tions of the final terms. 25e Phase Seven—Selection of an Order Routine ‘Once the supplier(s) has been selected, details as- sociated with the purchase decision must be settled. These details include delivery quantities, locations, and times along with return policies and the routine for reorders associated with the purchase, For cases in which the purchase requires multiple deliveries over « period of time, the routine for placing subsequent orders and making de- liveries must be set out and understood. Is the order routine standardized on the basis of a prearranged time schedule, or is the salesperson expected to moni- tor usage and inventories in order to place orders and + schedule shipments? Will orders be placed automati- cally through the use of electronic data interchange or the Internet? Regardless of the nature of the order routine, the salesperson plays a critical role in facilitat- ing communication, completing ordering procedures, and settling the final details. 2-5¢ Phase Eight—Performance Feedback and Evaluation ‘The final phase in the.buying process is the evaluation of performance and feedback shared among all parties for the purpose of improving future performance and enhancing buyer-sller relationships. Research sup- ports that salespeople’ customer interaction activities and communication at this stage of the buying process become the primary determinants of customer satisfac- tion and buyer loyalty. Consequently, itis critical that salespeople continue working with buyers after the sale, ‘The salesperson’s follow-up activities provide the critical points of contact between the buyer and seller in order to ensure consistent performance, respond to and take care of problems, maximize customer satisfaction, cre- ate new value opportunities, and further enhance buyer- seller relationships. ‘CHAPTER 2: Understanding Buyers repute on UNDERSTANDING POSTPURCHASE EVALUATION AND THE FORMATION OF SATISFACTION ate their experience with a product purchase on the basis of prod- uct characteristics that fall into a two-factor model of evaluation as depicted in Figure 2.47 The first category, functional attributes, re- fers to the features and characteristics that are related to what the product actually does or is expected to do—its functional characteristics. These functional characteristics have also been referred to as must-have attributes, features of the core product that the customer takes for granted. These are the tributes that must be present for the supplier or product to even be inchided among those being considered for purchase. Consequently, they tend to be fairly common across the set of suppliers and products being considered for purchase by a buyer Characteristics such as reliabil- ity, durability, conformance to specifications, competitive pricing, and performance are illustrative of functional attributes. Psychological at- tributes make up the second. general category. This category refers to how things are carried ‘out and done between the buyer and seller. These supplier and mar- kket offering characteris- tics are described as the delighterattributes— the — augmented — fea- tures and _characteris- tics included in the total market offering ‘that go beyond buyer expecta- tions and have a sig- nificant positive impact on customer satisfaction. “The psychological or de- lighter characteristics are DSL Cee eeu Be ee63% Level of Influence on Buyers’ Satisfaction Buyers evaluate functional attributes and psychological attributes of a sales offering to assess overall performance ‘and satisfaction. not perceived as being universal features across the ‘evoked set of suppliers and market offerings being con- sidered. Rather, these are the differentiators between the competitors. The competence, attitudes, and behaviors of supplier personnel with whom the buyer has contact, as well as the salesperson’ trustworthiness, consider- ation for the customer, responsiveness, ability to recover when there isa problem, and innovativeness in providing solutions are exemplary psychological attributes. 2-6a The Growing Importance of Salespeople in Buyers’ Postpurchase Evaluations Understanding the differential impact of functional (must-haves) and psychological (delighters) attributes is important for salespeople. Functional attributes pos- s8e8s a close correspondenct to the technical and more tangible product attributes, whereas the psychological attributes are similar to the interpersonal communica- tion and behaviors of salespeople and other personnel having contact with customers. Numerous research studies across a variety of industries evidence psycho- logical attributes as having up to two times more influ- ‘ence on buyer satisfaction and loyalty than functional attributes. This observation underscores special. im- plications for salespeople, as it is their interpersonal communication and behaviors—what they do—that make up the psychological attributes. Although both categories of product characteristics are important and have significant influences on buyer satisfaction, the activities and behaviors of the salesperson as she or he interacts with the buyer have more impact on that buyer's evaluation than the features of the prod- uct or service itself? 39 (CHAPTER 2: Understanding Buyers40 TYPES OF PURCHASING DECISIONS — Buyers are learners in that purchase decisions are not isolated behaviors, Buyer behavior and purchase deci- sions are based on the relevant knowledge that buy- ers have accumulated from multiple sources to assist them in making the proper choice. Internally, buyers reflect on past experiences as guides for making pur- chase decisions, When sufficient knowledge from past experiences is not available, buyers access external sources of information: secondary sources of informa- tion (eg,, trade journals, product test reports, white papers advertising) and other individuals e.., sales- people, the buyer perceives as being trustworthy and knowledgeable in a given area. ‘The level of experience and knowledge a buyer or buying organization possesses relevant to a given purchasing decision is a primary determinant of the time and resources the buyer will allocate to that purchasing decision. The level of a buyer’s existing experience and knowledge has been used to catego- ize buyer behavior into three types of purchasing, decisions: straight rebuys, modified rebuys, and new tasks. As summarized in Exhibit 2.6, selling strate- gies should reflect the differences in buyer behaviors and decision-making characteristic of each type of buying decision. Exhibit 2.6 Three Types of Buying Decisions Newnes of problem or need Low Information requirements Minimal Information search Minimal Consideration of new alternatives None Multiple buying influences Very small Financial risk E CCHAPTER 2: Understanding Buyers 27a Straight Rebuys If past experiences with a product resulted in high lev- cls of satisfaction, buyers tend to purchase the same product from the same sources. Comparable with a routine repurchase in which nothing has changed, the straight rebuy decision is often the result of a long-term purchase agreement. Needs have been predetermined with the corresponding specifications, pricing, and shipping requirements already established by a blanket purchase order or an annual purchase agreement. Ordering is automatic and often com- puterized by using electronic data interchange (EDI) and e-commerce (Internet, intranet, and ex- tranet). Mitsubishi Motor Manufacturing of Amer- ica uses a large number of straight rebuy decisions in its acquisition of component parts. Beginning as a primary supplier of automotive glass components, ‘Vuteq developed a strong relationship with Mitsubishi Motor Manufacturing of America over a period of several years. As a re- sult, Vuteq's business steadily increased and now includes door trims, fuel tanks, and mirrors in addition to window glass. These _compo- nents are purchased as straight rebuys by using Medium LimitedStraight Rebuy Habitual and Routine Decision Making EDI, allowing Vuteq to deliver these components to Mitsubishi on a minute-to-minute basis, matching on- going production, Although no buying decision begins as a straight re~ buy, once established buyers allocate litte, if any, time and resources to this form of purchase decision. The pri- mary emphasis is on receipt of the products and their continued satisfactory performance. With most of the purchasing process automated, straight rebuy decisions are little more than record keeping that clerical staff in the purchasing office often handles. For the in-supplier (a current supplier), straight rebuys offer the advantage of reduced levels of poten- tial competition. Rather than becoming complacent, however, in-salespeople must continually monitor the ‘competitive environment for advances in product ca pabilities or changes in price structures, They should also follow up on deliveries and interact with users as ‘well as decision makers to make sure that product and performance continue to receive strong and positive evaluations. Straight rebuy decisions present a major challenge to the out-salesperson, Buyers are satisfied with the products and services from current suppliers and see no need to change. This isa classic case where the buyer perceives no difference or needs gap between the actual and desired state. Consequently, there is no active buying motive to which the out-salesperson can respond. In this case, out-salespeople are typi- cally presented with two strategy choices. First, they ‘can continue to make contact with the buyer so that when there is a change in the buying situation or ifthe current supplier makes a mistake, they are there to respond. Second, they ‘ean provide information and evidence relevant Modified Rebuy New Task Extensive Consideration and Decision Making to either the desired or actual states so that the buyer will perceive a needs gap. For example, Vuteq's com- petitors will find it most difficult to gain this portion of Mitsubishi's business by offering similar or equal prod- ucts and systems. However, a competitor might adopt future advances in technology that would enable them to offer significant added value over and beyond that which Vuteq offers. Effectively communicating and demonstrating their advanced capabilities holds the potential for raising the desired state and thus produc- ing a needs gap favoring their solution over Vuteq's ex- isting sales offering. 2-7» New Tasks ‘The purchase decision characterized as a new task decision occurs when the buyer is purchasing a prod uct or service for the first time. As illustrated in Fig- ure 2.5, new task purchase decisions are located at the ‘opposite end of the continuum from the straight rebuy and typify situations in which buyers have no experi- ‘ence or knowledge on which to rely. Consequently, they undertake an extensive purchase decision and search for information designed to identify and compare al- ternative solutions. Reflecting the extensive nature of this type of purchase decision, multiple members of the buying team are usually involved. As a result, the salesperson will be working with several different in- dividuals rather than a single buyer. Mitsubishi buyers and suppliers were presented with new task decisions when the new Mitsubishi four-wheel-drive sport utility vehicle was moving from design to production. Mov- ing from their historical two-wheel-dtive to four-wheel- drive power lines and transmissions presented a variety of new needs and problems. Relevant to a new task purchasing decision, there is no in- or out-supplier. Further, the buyer is aware (CHAPTER 2: Understanding Buyers42 of the existing needs gap. With no prior experience in dealing with this particular need, buyers are often ea- ger for information and expertise that will assist them in effectively resolving the perceived needs gap. Sell- ing strategies for new task decisions should include collaborating with the buyer in a number of ways. First, the salesperson can pro- vide expertise in fully developing, and understanding the need. ‘The salesperson’s extensive experience and base of knowledge is also valuable to the buyer in terms of specifying and evaluating potential solutions. Finally, top salespeople will as- sist the buyer in making a purchase decision and prox vide extensive follow-up to ensure long-term satis- faction. By implementing this type of a consultative strategy, the salesperson establishes a relationship with the buyer and gains considerable competitive advantage. 27¢ Modified Rebuys Modified rebuy decisions occupy a middle position on the continuum between straight rebuys and new tasks. In these cases, the buyer has experience in purchasing the product in the past but s interested in acquiring adali- tional information regarding alternative products and/or shamu promotion, (CHAPTER 2: Understanding Buyers ‘Sea World worked with St, Charles based Craftsmen Industries to develop a pod of six Shamu cruisers to meetits new task decision on a means for conducting a special _ suppliers. As there is more familiarity with the decision, there is less uncertainty and perceived risk than for new task decisions. The modified rebuy typically occurs as the result of changing conditions or needs. Perhaps the buyer wishes to consider new suppliers for current purchase needs or new products that existing suppliers offer. Con- tinuing the example of buyer-seller experiences at Mitsubishi, the company’s decision to reexam ine their methods and sources for training and education corresponds to Ihe characteristics of a modi- fied rebuy decision. Since its beginning, Mitsubishi Motor Manufacturing of America has used a mix of company train- ers, community college and universities to provide ‘education and training to employees. Desiring more coordination across its training programs, the company requested pro- posals for the development and continued management of a corporate university from a variety of suppliers, in- cluding several current as well as new sources. Often a buyer enters into a modified rebuy type of purchase decision simply to check the competitiveness of existing suppliers in terms of the product offering and pricing levels. Consequently, in-salespeople will empha- size how well their product has performed in resolving the needs gap. Out-salespeople will use strategies similar to those undertaken in the straight rebuy. These strate- gies are designed to alter the relative positions ofthe de- | sired and actual states in a way that creates a perceived sup and influences buyers to rethink and reevaluate their current buying patterns and suppliers UNDERSTANDING COMMUNICATION STYLES Verbal and nonverbal messages can also ptovide sales- people with important cues regarding buyers’ personalities ‘and communication styles. Experienced salespeople ‘emphasize the importance of reading and respond- ing to customer commu- nication styles. Effectively sensing and interpreting ceustomers’ communication+Slow-Paced + Cooperative + Avoids Taking Risks + Supportive «Team Player + Nondirective + Easygoing + Reserved in Expressing Opinions +Task-Oriented + Guarded and Cool +Rational Meticulous Organizer + Inflexible Regarding Time + Controlled Gesturing + Nondirective «Formal +Relationship-Oriented *Open and Warm '-Emotional Unorganized + Flexible Regarding Time Highly Animated Spontaneous +Informal ‘Most sales training programs use a two-by-two matrix as a basis for categorizing communication styles into four primary ‘types. The four styles are based on two dimensions: assertiveness and responsiveness. styles allows salespeople to adapt their own interaction behaviors in a way that facilitates buyerseller commu- nication and enhances relationship formation. Most sales training programs use a two-by-two matrix as a ba- sis for categorizing communication styles into four pri- mary types.’ As Figure 2.6 illustrates, the four styles are based on two determinant dimensions: asertiveness and responsiveness. Assertiveness—Assertiveness refers to the degree to which a person holds opinions about issues and attempts to dominate or control situations by directing the thoughts and actions of others. Mighy assertive individuals tend to be fast-paced, opinionated, and ‘quick to speak out and take confrontational positions. Lowrassertive Individuals ter to exhibit a slower pace. They typically hold back, let others take charge, and are slow and deliberate in their communication and actions. Responsiveness—Responsiveness points to the level of feelings and sociability an individual openly displays. Highly responsive individuals are relationship- ‘oriented and openly emotional. They readily express their feelings and tend to be personable, friendly, {and informal. However, low-responsive individuals tend to be task-oriented and very controlled in their display of emotions. They tend to be impersonal in dealing with others, with an emphasis on formality and self-discipline. Verbal and nonverbal messages can provide salespeople with important cues regarding buyers’ personalities and communication styles. (CHAPTER 2: Understanding Buyers 43‘The four quadrants characterize an individual as one of four different communication styles on the basis of his or her demonstrated levels of assertiveness and responsiveness. A salesperson’s skill in properly classifying customers can provide valuable cues regarding customer attitudes and behaviors. ‘The actual levels of assertiveness and responsiveness will vary from one individual to another on a continuum ranging from high to low. An individual may be located anywhere along the particular continuum, and where the individual is located determines the degree to which he or she possesses and demonstrates the particular behav- iors associated with that dimension. The following figure illustrates the range of behaviors commonly associated with each dimension. Overlaying the assertiveness and responsiveness di- mensions produces a four-quadrant matrix as illustrated in Figure 2.7. The four quadrants characterize an incl- vidual as exhibiting one of four different communication styles on the basis of his or her demonstrated levels of assertiveness and responsiveness. Amiables are high on responsiveness but low on assertiveness, Expressives are defined as high on both responsiveness and assertive- ness. Drivers are low on responsiveness but high on as- sertiveness. Analyticals are characterized as being low on assertiveness as well as responsiveness. A salesperson’s skill in properly classifying customers can provide valu- able cues regarding customer attitudes and behaviors. In . turn, these cues allow the salesperson to be more effec- tive by adapting his or her communication and responses to better fit the customer's style. (CHAPTER 2: Understanding Buyers ‘Amiables—Developing and maintaining close personal relationships ae important to amiables. Easygoing and cooperative, they ae often characterized as friendly backslappers due to ther preference for belonging to groups and their sincere interest in other people—their hobbies, interests, families, and mutual friends. With a natural propensity for talking and socializing, they have litle or no desire to control others but rather prefer building consensus. Amiables are not risk takers and need to fee! safe in making a decision. Somewhat undisciplined with regard to time, amiables appear tobe slow and deliberate in ther actions. They avoid conflict and tend to be more concerned with opinions— what others think—than with details and facts. When confronted or attacked, amiables tend to submit In working with an amiable customer, salespeople should ‘remember that their priority *musthave"is tobe liked and their fundamental“want”is, for attention. Expressives— Expressives are animated and highly communicative. Although verycompetitive by nature, they also exhibit warm Personalities and value building close relationships with others. in fact, they dislike being alone and readily seek out others. Expressives are extroverted and are highly uninhibited in their communication. When confronted or crossed, they will attack. Enthusiastic and stimulating, they seem to talk in. terms of people rather than things and have a ready ‘opinion on everything. Yet, they remain open-minded and changeable. Expressives are fast paced in their decision making and behavior and prefer the big picture rather than getting bogged down in details. ‘As a result, they are very spontaneous, unconcerned ‘with time schedules, and not especially organized in their daily lives. They are creative, comfortable operating on intuition, and demonstrate a willingness to take risks. The two keys for expressives. that salespeople must keep in mind are the ‘must have" of never being hurt emotionally and their underlying “want”is attention, Drivers—Sometimes referred to asthe director or dictator style, drivers are hard and detached from their relationships with others. Described as being ‘ool, tough, and competitive in their relationships, drivers are independent and willing to run over others to get their preferred results. As they seek out and. ‘openly demonstrate power and control over people and situations, they are difficult to get close to and appear to treat people as things. Drivers are extremely formal, businesslike, and impatient, with a penchant for time and organization. They are highly opinionated, impatient, and quick to share those opinions with those around them. When attacked or confronted, drivers will dictate. Drivers exhibit alow tolerance for taking advice, tend to be risk takers, and favor making their own decisions. Although they are highly task- ‘oriented, drivers prefer to ignore facts and figures {and instead rely on their own gut feelings in making decisions—after all, they do know it all. When working with drivers, salespeople should remember that this style's“must-have" is winning, and their fundamental want" is results. ‘Analyticals—The descriptive name for this style 's derived from their penchant for gathering and analyzing facts and details before making a decision. Analyticals are meticulous and disciplined in everything they do. Logical and very controlled, they are systematic problem solvers and thus very deliberate and slower in pace. in stressful situations and confrontations, analyticals tend to withdraw. Many times, they appear to be nit-picky about everything around them. They do not readily express their feelings nor are they spontaneous in their behaviors. As a result, they are often seen as being, ‘cool and aloof. Analyticals shy away from personal relationships and avoid taking risks. Time and personal schedules are close to being a religious ritual for the analytical. The two fundamentals that salespeople ‘must keep in mind when working with this style are the “must-have” of being right and the underlying “want” {for analytical activities. 24 Mastering Communication Style Flexing In addition to sensing and interpreting the customer's communication style, a salesperson must also be aware of his or her own personal style. Mismatched and pos- sibly clashing styles can be dysfunctional and present significant barriers to communication and relationship building. To minimize possible negative effects stem- ming from mismatched styles, salespeople can flex their own style to facilitate effective communication. For example, an expressive salesperson calling on an analytical buyer would find considerable differences in both pace and relationship/task-orientation that could hinder the selling process unless adjustments are made. Flexing his or her own style to better match that of the buyer enhances communication. In terms of our example, the salesperson would need to make adjustments by slowing down his or her natural pace, reining in the level of spontaneity and animation, and increasing task orientation by offering more detailed information and analysis. Adapting to buyers by flexing his or her own com- ‘munication style has been found to have & positive im- pact on salespeople’s performance and the quality of buyer-seller relationships. Nevertheless, flexing should not be interpreted as meaning an exact match between a salesperson’s style and that of a customer. Not only {s it not required, exact matches could even be detri- ‘mental. For example, a buyer and seller with matching, expressive styles could easily discover that the entire sales call regressed to little more than a personal dis- ‘cussion with nothing of substance being accomplished. However, a buyer and seller matched as drivers could find it difficult, if not impossible, to reach a decision that was mutually beneficial. Rather than matching the buyer's style, flexing infers that the salesperson should adjust fo the needs and preferences of the buyer to maximize effectiveness. Growmark, an international agricultural product and service organization, teaches CHAPTER 2: Understanding Buyers 45its salespeople to flex throughout their interaction with a buyer by studying different behaviors a salesperson might demonstrate with each style of buyer. Study‘and compare the fling behaviors that Grow- mark recommends that their salespeople demonstrate when working with each buyer communication style. Note the differences in recommended salesperson be- havior and rationalize them in terms of the specific characteristics of each buyer's style. Overlaying and in- tegrating these two sets of information will enhance the understanding of how to flex to different buyers and why that form of flexing is recommended. It is not always possible to gain much information about a buyer's communication style, especially if the buyer is new. If this is the case, it may be more appro- priate to assume that the buyer is an analytical-driver and prepare for this style, If the buyer proves to be close to an amiable-expressive, then the salesperson can easily adapt. It is much more difficult to pre- pare for the amiable-expressive and then switch to an analytical-driver style. ® BUYING TEAMS ‘A single individual typically makes routine purchase decisions such as straight rebuys and simpler modified rebuys. However, the more complex modified rebuy and new task purchase decisions often involve the joint decisions of multiple participants within a buying cen- ter or team, Buying teams (also referred to us buying 46 cHAPTER 2: Understanding Buyers centers) incorporate the expertise and multiple buy~ ing influences of people from different departments, throughout the organization. At Xerox, for example, there are on average four customer employees involved in every Xerox sale." As the object of the purchase deci- sion changes, the makeup of the buying team may also change to maximize the relevant expertise of team mem- bers. The organization’ size, as well as-the nature and volume of the products being purchased, will influence the actual number and makeup of buying teams. The dif- ferent members of a buying team will often have varied ‘goals reflecting their individual needs and those of their different departments. Buying team members are described in terms of their roles and responsibilities within the team." ‘= Initiators—Initiators are individuals within the ‘organization who identify a need or perhaps realize that the acquisition of a product might solve a need or problem. ‘+ Influencers—Iindividuals who guide the decision process by making recommendations and expressing preferences are referred to as influencers. While they ‘could be anyone, they are often technical or engineering personnel, ‘© Users—Users are the individuals within the ‘organization who will actually use the product being purchased. They evaluate a product on ‘the basis of how it will, affect their own job performance, Users often serve as initiators and influencers. + Deciders—The ultimate responsibility for determining which product or service will the role of i Although buyers might, also be deciders, it is not unusual for different people to fill these roles. + Purchasers— Purchasers have the responsibilty for negotiating final terms of purchase with suppliers and executing, the actual purchase or acquisition,‘+ Gatekeepers—Members who are in the position to control the low of information to and between vendors and other buying center members are referred to as gatekeepers. This often includes secretaries and administrative assistants. Although each of these Influencer types will not necessarily be present on all buying teams, the use of buying teams incorporating some or all ofthese multiple influences has increased in recent years. One example of multiple buying influences is offered in the experi- cence of an Executive Jet International salesperson sell- ing a Gulfstream V corporate jet to a Chicago-based pharmaceutical company. Stretching over a period of six months, the salesperson worked with a variety of individuals serving different roles within the buying ‘organization: + Initiator: The initiator ofthe purchase process was the chief operating officer ofthe corporation who found that the recent corporate expansions had outgrown the effective service range of the organization's existing aircraft. Beyond pointing out the need and thus initiating the search, this individual would also be highly involved inthe final choice based on her personal experiences and perceived needs of the company. + Ioftuencers: Two different employee groups acted as the primary influencers. ist were the corporate pilots who contributed a readily avalable and extensive background of knowledge and experience with a variety of aircraft types. Also playing a key influencer role were members from the capital budgeting group in the finance ‘department. Although concerned with documented ‘performance capabilites they also provided inputs and assessments ofthe different alternatives using their capital Investment models. ‘+ Users: The users provided some ofthe most dynamic Inputs, as they were anxious to make the transition to. higher performance aircraft to enhance their ‘own efficiency and performance in working at marketing/ sales ofices and plants that how stretched over the continents of North and South America Primary players in this group included the vice presidents for marketing and for production/operations in addition tothe corporate pilots who would be flying the plane. ‘+ Deciders: Based on the contribution and inputs of each ‘member of the buying team, the chief executive oficer ‘would make the ultimate decision. Her role as, decider was based more ‘on her position within the firm rather than her use of the chosen alternative, siven that she traveled ‘primarily by commercial carriers. As the organization's hhighest operating officer, she was ina position to move freely among all members of the buying team and make the decision on overall merits rather than personal feelings or desires. + Purchaser: The corporate purchasing department was responsible for making the actual purchase, negotiating the final terms, and completing al the required paperwork, with the director of purchasing actualy assuming the immediate contact role. The purchasing “office typically handles purchasing contracts and is stafed ‘todraw up, complete, and ile the related registrations and legal documents. + Gatekeepers: This purchase decision actually involved two different gatekeepers within the ‘customer organization: the executive assistant to the chief operating officer and an assistant purchasing officer. The positioning of these gatekeepers facilitated the salesperson’s exchange of information and ability to keep in contact with the various members of the buying team. The COO's executive assistant moved easily among the various executives influencing the decision and was able to make appointments with the right people at the right times. However, the assistant purchasing officer ‘was directly involved with the coordination of each member and bringing their various inputs into one summary document for the CEO. The salesperson’s positive dealings and good relationships with each of the gatekeepers played a significant role in Executive Jet getting the gale, A classic and all-too-common mistake among sales- people is to make repetitive calls on a purchasing man- ager over a period of several months only to discover that a buying team actually exists and that someone other than the purchasing manager will make the ulti mate decision. Salespeople must gather information to discover who isin the buying team, their individual roles, and which members are the most influential. This infor- mation might be collected from account history files, people inside the salesperson’: organization who are familiar with the account sources within the client or- ganization, conversations with the initial buyer contact, and even other salespeople. A salesperson should work with all members of the buying team and be careful to address their varied needs and objectives properly. Nev- ertheless, circumstances sometimes prevent a salesper- son from working with all members of the team, and it is important that the salesperson reaches those that are ‘most influential. It may be difficult, however, to get past the gate- keeper to reach those individuals most influential in the buying process. Brett Eiskina, Corporate Acquisition (CHAPTER 2: Understanding BuyersAccount Executive at Sprint Nextel, has found that us- ing social media allows him to bypass the gatekeeper and go directly to decision makers. As Brett explains, “In the past, effective gatekeepers have been a sales- person's worst nightmare. There is nothing worse than repeatedly calling on a client only to learn that they are always “In a meeting” or “Out of the office” EV- ERY time you call. Well, with the growing number of people using social media, itis becoming increasingly easier for \le to skip those gatekeepers and go straight to those decision makers. [have found Linke- din to be particularly valuable. It gives me informa- tion and insight to buyers (e.g. college, field of study, groups they belong to, etc.) that I would never have known before contacting them. I've set many appoint- ments simply by mentioning that I was an alum of the same college as the person I was trying to reach out to. LinkedIn will also show you if you have any mutual connections that you can query for information before reaching ont for the appointment. Don't just stick to Linkedin though; Hoovers, Data.com, ‘Twitter .and even Facebook are all very powerful tools that can help you get an edge over the other salespeople reaching ‘out to the same decision maker.” @® ENGAGING cusToMERS Today’s business organizations are undergoing pro- found change in response to ever-increasing competi- tion and rapid changes in the business environment. ‘The worldwide spread of technology has resulted in in- tense and increasingly global competition that is highly ‘dynamic in nature. Accelerating rates of change have fragmented what were once mass markets into, more micro-and njche markets composed of more know!- edgeable and demanding customers with escalating expectations. In response, traditional purchasing prac tices are also rapidly changing to ensure that custom- crs are fully engaged. 2-102 Focusing on the Customer Experience A study of customer experience professionals from large multinational B-to-B organizations represent ing an array of industries provides insight on what the business customer experience will look like mov- ing forward." According to the study, customers will expect companies to have a clear understanding Of their needs and to proactively address their cur- rent and future needs with a personalized customer 48 CHAPTER2: Understanding Buyers ‘experience. Accessing the internet to get the most current information on products, solutions and best practices, customers will have a more informed base ‘of understanding and will expect an equally informed salesperson. Consequently, salespeople must move beyond providing solutions to current needs and move toward “insight selling” by anticipating and ful- filing customer needs necessary for them to adeptly face the future. Salespeople must have access to cus- tomer intelligence and emphasize proactive and per- sonalized customer support. According to the survey, 62% of respondents indicated that they are investing in understanding individual customer characteristics to better meet the changing needs of customers. To keep customers, salespeople will be required to anticipate needs along the stages of the customer lifecycle and proactively respond. This will entail the use of big data to generate customer intelligence that can be used to provide a comprehensive view of the customer. Customers will expect sellers to keep them informed by interacting with them using the buyer's preferred method of communication. Exhibit 2.7 indicates communication channels most likely to be used often by business customers in 2020, 220 The Role of Information Technology Buyers and sellers alike are using technology to enhance the effectiveness and efficiency of the purchasing pro- cess. Business-to-business e-commerce is rapidly grow- ing. Although EDI over private networks has been in use for some time, nearly all the current growth has been in Internet-based transactions. Information technology electronically links buyers and sellers for direct and immediate communication and transmission of information and data. Transactional exchanges such as straight rebuy decisions can now be automated with Internet- and World Wide Web- . enabled programs tracking sales at the point of pur- chase and capturing the data for real-time inventory ‘control and order placing. By cutting order and ship- ping times, overall cycle times are reduced, mistakes are minimized, and working capital invested in invento- ries is made available for more productive applications. Farther, the automation of these routine transactions allows buyers and salespeople to devote more time to new tasks, complex sales, and postsale service and rela- | tionship-building activities. Customer relationship management (CRM) sys- tems integrated with the Web allow reps to have a more informed conversation with prospects and customers by helping. them better understand customers. Sales(0% 10% 20% 30% 403% 50% 60% 70% 80% organizations know keywords searched to find the sell- cers company, pages clicked on the company’s Web site, and particular products and services buyers examined prior to asking for more information. Additionally, data collected on customer demographics, sales and cus- tomer service histories, and marketing preferences and customer feedback can be easily accumulated through @ CRM system and used to better understand custom- ers and provide customized offerings to: best serve their needs. Celanese Corporation, a leading chemi- cals manufacturer, credits its CRM system with allow- ing sales dialogue to advance based on the premise that the customer has a specific need it can fulKill Soctal networking technologies are likely to play an important role in CRM systems, making it more convenient for ‘customers to provide information that goes into product planning and development, as well as provide deeper insights into customer buying motives. 1 Likely to Be Used in 2020 For instance, Microsoft offers its Sales Produetiv- ity CRM software that incorporates Outlook, Lyne, Skype and Yammer to allow for social collaboration between buyers and sellers, For an example of how Dell goes beyond CRM with predictive analytics, see “Technology in Selling: Deeper Customer Insight at Dell” In addition to facilitating exchange transactions, applications integrating the Internet are also being used to distribute product and company information along with training courses and materials. Several companies have begun publishing their product catalogs online as a replacement for the reams of product brochures salespeople have traditionally had to carry with them. ‘The online catalogs can be easily updated without the ‘expense of obsolete brochures and can be selectively downloaded, by salespeople to create customized pre- sentations and proposals. CHAPTER 2: Understanding Buyers 49Technology in Selling Deeper Customer Insight at Dell though Del already used CRM technology, in order to better under- stand customers and improve salesorce productivity, Deltumed to Lat- tice Engines, a company that specializes in predictive analytics Lattice software determines purchasing patterns of Dell business customers and then searches Web and customer information fr prospec that match those patterns. The Latice software looks fr buying triggers and behav- iors andconwerts them into mathematical algorithms that can predict thelikethood that a potential custome wl buy 2 certain product. forintanc, companies who sign an office lease typically purchase Del smal-business products, the software could ascertain information 2-10¢ Buyers’ Demand for Access to Relevant Information With ever-éxpanding information technology, buyershave easier access to information on vendors and are utilizing technology to become more informed buyers. This has shifted some of the power to buyers, who can accompany more bidders, making the landscape even more competi- tive, As buyers increasingly undertake a larger share of the purchase process on their own, they are demanding that sellers make available to them relevant content to help them justify their buying decisions. In a survey of how customers choose, approximately two-thirds of re- spondents indicated that they do their own research rather than waiting for salespeople to contact them.” As such, buyers are demanding that information be made available to them via their laptops, desktops, iPads, and smartphones as they seek out more and more informa- tion prior to connecting with a salesperson. These buyers 50 (CHAPTER 2: Understanding Buyers en about new office leases, Linkedln announcements, website information, _and other public statements or sources of information to identify likely ‘prospects. The application also uses information from socal networks suchas Linke to provide a more comprehensive customer profile for salespeople enabling reps to better understand customers and ‘prospects more quickly. Using this software, Dell sales reps are provided with comprehensive inteligence (9, pat purchases, corporate activ- ity ily next purchase from Dell) that allows them to participate in relevantand timely discussions with prospecs and customers. TandaDVSutoi com are looking for personalized dialogue that can Help guide them through the decision process. For instance, content aimed at an economic buyer might inchude a return-on- investment (RO!) calculator. To help the analytical buyer understand the company’: novel approach to solving a problem, a case study might prove valuable." Blogs, white papers, webinars, videos, recorded in- terviews, product demos, and presentations—providing anything from expert analysis and advice, to product announcements, should be offered to targeted custom- ers through media such as a company Web site, Twitter stream, or LinkedIn discussion group." Logicalis, an inte- sgrated information and communication technologies pro- vider, tries to gain attention as a thought leader by helping buyers understand cutting-edge IT topics by posting infor- ‘mative content on its own Web site and having a presence ‘on Facebook and LinkedIn, Citrix Systems, a provider of virtualization and cloud-computing technologies, is us- ing blogs to provide information to those searching forSelling in Action How to Become Invaluable to Your Customers: ‘Adian Davis, author, certified speaking professional andexpertin strategic selling and account management discusses three steps to collaborative value creation: “Sales teams are taught that value begins with their product. Fist, they lear the product, then they lear is crtcal features, and then they eam the benefits ofthese features to thelr customers Product, features, benefits —in that order. This is completely wrong ‘and itis rooted in an Industrial Age framework. Inthe Industrial Age, manufacturers used “value-added” processes to add valve to raw materials and create finished products. nother words, they defined vale. In this post-Indusrial Age, vendors do nt creat valu. ‘repeat that in case you read overt Vendors donot create value! Values defined and created by customers. Therefore, your ‘approach to value creation must begin with, and be in partnership with, and end with the customer. Follow these three steps for a sound approach to selling value: 1. Start with the customer Rather than start with your produc start with the customer’ ‘strategy and processes. n order to create value, you must trends in cloud computing and virtualization, while Link- Ware, a developer of electronic forms, posts relevant information on community sites that prospective cus- tomers visit2® The more streamlined and personalized the information, the /better, as buyers increasingly face information overload. Overwhelmingly, buyers are look- ing for information that proves how the seller's product wil resule in savings, enhance productivity, and positively affect profitability. aerate oe ‘understand where the customer is going, how they are trying together, and what s getting in thelr way. 2. Collaborate withthe customer ‘Work out how your capabilities (praduct or services) can be applied to their processes in order to address external pressures, internal obstacles and/or emerging opportunities fr growth. 3. Work with yourcustomer ‘ver thelong tem, ensue that your customers are actualy deving ‘value from the use of your products and services. As much as possible, amt quantify this valet be sure that both you and yourastomer understand the economic impact of your intervention, By taking this rigorous approach to collaborative value creation, _you will separate yourself from the hordes of vendors that are stuck ‘in The Product-Push TrapTM. You will be able to, very quickly, identify those customers with areal ned for your produc or service. ts these customers that will work with you as @ partner because they .- quickly recognize that partnering with you creates value for them. AS You create value for them, youl ceate demand for our solutions” 2104 The Need for Adding Value The increased interdependence between buyer and seller organizations hinges on the salesperson’s capabil- ities to serve as a problem solver in a dynamic and fast- ‘changing business environment. According to a study of 80,000 business customers, buyers expect several things from salespeople.” For one, they expect sales- people to personally manage their businesss. In fact, (CHAPTER 2: Understanding Buyers 51many buying organizations Outsource to a supplier ‘certain activities that the buying organization previ- ously performed. These activities are necessary for the day-to-day functioning of the buying organization but are not within the organization's core or distinct pos- sibilities. Moreover, buyers depend on the salesperson to provide unique and value-added solutions to their changing problems and needs. To shape such innova- tive solutions, salespeople must have broad-based and comprehensive knowledge readily available and-the ability to use that knowledge in creative ways. This includes knowledge of one’ own products and capa- bilities, as well as the products and capabilities of com- petitors. More important, the salesperson must possess 52 CHAPTER 2: Understanding Buyers 4 thorough understanding of product applications and the needs of the customer to work with the buyer in ‘generating innovative solutions. Finally, buyers expect salespeople to be easily accessible in order to respond to ‘ongoing concerns and solve problems that may arise af- ter the sale. By fulfilling these expectations, salespeople ‘ean add value to the customer buying experience and more fully engage the buyer. For more information on how to grow customer re- lationships through cus- tomer value creation, see “Selling in Action: How to Become Invaluable to Your Customers."CHAPTER CASE ING FOR RELATIONSHIPSEIRST, INC. : RSTANDING COMMUNICATION STYLE, BUYING TEAMS, AND BUYING NEEDS BACKGROUND RelationshipsFist, Inc. sa relatively new entrant in the cloud ‘computing business management software industry, having been in existence for a litle over four years. It specializes in providing Web-based customizable customer relationship management software solutions that support an entire ‘company, from accounting to Web capabilities. Its software is constructed around an individual customer record so that ‘2ccounting, sales, support, shipping, and billing all access ‘identical information for each interaction. The company ‘curently serves a variety of busihesses actoss a number of Industries. Customer satisfaction fs the company's top priority and it acts with integrity to full this mission. ts technology is easy to lear and easy to use, and its information technology staffs extremely knowledgeable and customer friendly. The company currently employs more than 75 salespeople ‘who call directly on businesses and organizations throughout the United States. Salespeople ae trained to be customer- oriented problem solvers who seek to establish long-term relationships with customers. This approach has alowed RelationshipsFist to experience steady sales gains since its beginning and it hopes to continue its upward growth trajectory CURRENT SITUATION Dawn, a recent college graduate who just completed the sales rep training program at RelationshipsFist, is excited about her upcoming meeting with Green Meadows Nursery and Landscape, LLC of Kansas City, Missouri Privately owned, Green Meadows serves the nursery and landscaping needs ofits customers through its two large metro retail locations. ach location has a store manager, and several ful-and part-time employees to assist with sales and operations. The company’s owner serves as president and they also employ a director of marketing and sales, who among other things. oversees a staff offive outside salespeople, a director of operations a director of information technology (whose primary responsibility is to run the Web side oftheir business and a director of accounting and finance. The outside sales force solicits both residential and commercial accounts and in large parts responsible for growing the non-etall business for Green Meadows. ‘Agood friend of Dawns, Taylor Shift, happens tobe neighbors with Stewart trong, Green Meadows director of marketing ‘and sales. na recent conversation with Stewart, Taylor ‘mentioned Dawn and how she might be able to help him at Green Meadows. Stewart suggested that Taylor have Dawn ‘give him a call and subsequently Dawn was able to secure a meeting with Stewart Strong the following Tuesday moming, ‘Dawn was delighted that Taylor provided her with this ‘prospect and was confident that this would help her get off 40. fast start at RelationshipsFirst, Dawn has been fiends with Taylor since grade school. This s not unusual for Dawn, ‘who has many friends and close relationships, ikely because she shows such a sincere interest in others, particularly in their hobbies, interests, family, and mutual friends. She enjoys listening to the opinions of others and seems to get along with most everyone, generally avoiding conflict rather than submitting to others. Dawn credits her abilty to communicate well orally (she loves to talk and socialize), get ‘along well wit others, and build a consensus, in part, for her landing a position in sales at Relationshipsist. Prior to her meeting with Stewart Strong, Dawn asked Taylor {f she could meet her for lunch to find outa itle more about Stewart and Green Meadows, When awn finally arrived for lunch, late as usual, she wasn't able to learn as much about Green Meadows as she would have liked, but she did learn the following about Stewart. Taylor indicated that Stewart was a good neighbor, but he certainly wasnt a fiendly, outgoing relationship builder such as Dawn. in fact, he tended to be rather cool, tough, and competitive when it came to relationships. He lked to be in charge of people and situations and was not wiling to let others stand inthe way of achieving his goals Stewart manages his time wells impatient with others, and tends to be very businesslike. He likes extreme sports and appears to have ‘a penchant for taking risks, According to Taylor, at annual home owners’ association meetings, Stewart tends to be the ‘most outspoken individual in attendance. While opinionated, Stewart rarely takes advice from others and prefers to make his own decisions‘Although Dawn believed she still had additional work to do before meeting with Stewart, she was at least glad to know alittle bit about the person she would be meeting. The more she knew about her buyer, she surmised, the better she could tailor her offering to meet his needs, QUESTIONS Based on your understanding ofboth Dawn and Stewart, how would you characterize the communication syle of each? Wha, f ary, preparations and style flexing should Dawn make to better relate to and communicate with Stewart tong? ‘Who allright be volved inte buying decision for Green ‘Meadows with regard to Daw offering? For each, explain wy and how. Explain at leasttwoneeds that might be met by Green Meadows ‘by purchasing the software offered by ReatonshipsFist ROLE PLAY Situation: Read the case. (Characters: Dawn, sales rep for Relationshipstirst, Inc; Stewart Strong, ditector of marketing ‘and sales, Green Meadows Nursery and Landscape, LLC. ‘Scene: Location—Stewart Strong’ office at Green Meadows. ‘Action—Dawn meets with Stewart to find out more about Green Meadows operations and needs to see if, she can help them. She is also trying to determine who else might be involved in the buying decision and what influence each might have. She has no plans to make a sale on this callCHAPTER CASE ‘Yovare a sales representative for Shoes Unlimited, a manufacturer ‘marketer ofan aray of styles of men’s and women’s casual ‘CURRENT SITUATION ‘You recently scheduled 2 meeting with Joe Jackson, owner of ‘Fantastic Footwear, an independent retal shoe store located in a “small rural community in southeast Missouri. Joe contacted you _after finding your company on the Internet. He isin the process of _Pvaluating several supplies for his soon-to-be-opened shoe store. Before meeting with Joe, you have decided to prepare a series (of questions to ak Joe to identi his situational, functional, social, psychological, and knowledge needs. When meeting with oe you want to ask him several questions so that you can fly "understand his needs and then demonstrate to him how you and your company can best satisfy those needs. ROLE PLAY Location: Joe Jackson's office at Fantastic Footwear (Characters: You, Shoes Uniimited sales representative; Joe’ Jackson, owner of Fantastic Footwear ‘Action: Using the questions you developed, have a ‘conversation with Joe to assess his five general types of needs (ask atleast one to two questions to assess ‘each need).