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Module 3 Understanding Buyers

Nick LaRoche understands his buyers and how they do business. For one customer, he found that changing how they purchased Weber products could increase profits. As a result, the amount Nick sold to this account doubled and their relationship has continued to grow as the buyer realized increased sales and profits and Nick enjoyed watching the account grow.

Uploaded by

Berna Montoya
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
588 views

Module 3 Understanding Buyers

Nick LaRoche understands his buyers and how they do business. For one customer, he found that changing how they purchased Weber products could increase profits. As a result, the amount Nick sold to this account doubled and their relationship has continued to grow as the buyer realized increased sales and profits and Nick enjoyed watching the account grow.

Uploaded by

Berna Montoya
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Module Three

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

Action
Understanding Buyers
An Expert’s Viewpoint:

Result

The amount Nick sold to this account soon doubled.


The relationship between Nick and the buyer has
continued to grow since the purchasing change. The
buyer has realized increased sales revenue and profits
while Nick has enjoyed watching this account grow in
total volume.
Categories of Buyers

Consumer Markets

Business Markets
Firms
Institutions
Governments
Non-Profit Organizations
Distinguishing Characteristics of
Business Markets

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

Recognition of Search and Qualification Selection of an


the Need of Potential Sources Order Routine

Determination of Acquisition & Analysis Performance Feedback


Desired Characteristics of Proposals and Evaluation

Description of Evaluation of Proposals


Desired Characteristics Selection of Suppliers
Needs Gap – An Example from the
Life of a College Senior
I have a job.

Desired State

Needs
Gap

Actual State
I do not have
a job.
Multi-Attribute Model

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

Assessing the Relative


The weight Importance of Each
Characteristic (I)
Multi-Attribute Model: an Example
P I PxI
Networking
Opportunities 4 .5 2
On-line Resume Exposure
4.8
Service of Resume 8 .3 2.4
Quality
Control 4 .1 .4

P I PxI
Networking
Opportunities 8 .5 4
Campus Career Exposure
5.8
Services of Resume 4 .3 1.2
Quality
Control 6 .1 .6
Employing Buyer Evaluation Procedures
to Enhance Selling Strategies
• Modify the Product Offering Being Proposed
• Alter the Buyer’s Beliefs about the Proposed
Offering
• Alter the Buyer’s Beliefs about the Competitor’s
Offering
• Alter the Importance Weights
• Call Attention to Neglected Attributes
Complex Mix of Business Buyer Needs

37%
Level of Influence
Functional On Buyers’ Satisfaction
Attributes
“Must-Haves”
Buyers’
Level of
Satisfaction
Psychological 63%
Attributes Level of Influence
On Buyers’ Satisfaction
“Delighters”
Characteristics of the
Three Types of Buying Decisions

Straight Modified New


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

Amiable Expressive
Relationship Oriented

Low High
Slow Paced Fast Paced
Assertiveness Assertiveness

Task Oriented

Analytical Driver

Low
Responsiveness
Types of Purchasing Decisions

• Straight Rebuy Buying Situation


– Routinized Response Behavior

• Modified Rebuy Buying Situation


– Limited Problem Solving

• New Task Buying Situation


– Extensive Problem Solving
Buying Center Members

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

Increasing Use of Information Technology

Relationship Emphasis on
Cooperation and Collaboration

Supply Chain Management

Target Pricing

Increased Importance of Knowledge and Creativity

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