Module Three
Understanding Buyers
Learning Objectives
1. Categorize primary types of buyers.
2. Discuss the distinguishing characteristics
of business markets.
3. List the different steps in the business-to-
business buying process.
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Learning Objectives
4. Discuss the different types of buyer needs.
5. Describe how buyers evaluate suppliers
and alternative sales offerings by using the
multiattribute model of evaluation.
6. Explain the two-factor model that buyers
use to evaluate the performance of sales
offerings and develop satisfaction.
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Learning Objectives
7. Explain the different types of purchasing
decisions.
8. Describe the four communication styles and
how salespeople must adapt and flex their
own styles to maximize communication.
9. Explain the concept of buying teams and
specify the different member roles.
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Setting the Stage
Understanding the Buyer’s Needs
and Dreams is the Key to Success
1. To what did David Laube contribute
his success?
2. What is, and more importantly, why
does David hold a “discovery”
session with his clients?
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Categories of Buyers
Consumer Markets People (Personal Use)
Firms
Institutions
Business Markets
Governments
Non-Profit Organizations
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Distinguishing Characteristics of
Business Markets
• Concentrated Demand
• Derived Demand
• Higher Levels of Demand Fluctuation
• Purchasing Professionals
• Multiple Buying Influences
• Close Buyer-Seller Relationships
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Buying Decision Process
Initiating
Initiating the
the Relationship
Relationship
Evaluation
Search
Acquisition
Determination
Selection
Recognition
Description
and
Evaluation
Search
Acquisitionof
ofQualification
&
Proposals
Determination
Selection
Recognition
Description
and of
Analysis
an
of
of
of
of &
Qualification
&Proposals
of
Analysis
an
of &
Performance
Performance Feedback
Feedback
Desired
Selection
of
of Potential
Order
of
ofthe
Desired
SelectionProposals
Characteristics
of
Need
Routine
Potential
Order
the Suppliers
Sources
Proposals
Characteristics
of
Need
Routine
Suppliers
Sources
and Evaluation
and Evaluation
Developing
Developing the
the Relationships
Relationships
Enhancing
Enhancing the
the Relationships
Relationships
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Buying Decision Process
Recognition
Recognition of
of Search
Search and
and Qualification
Qualification Selection
Selection of
of an
an
the Need
the Need of
of PotentialSources
Potential Sources Order Routine
Order Routine
Determination
Determination of
of Acquisition
Acquisition && Analysis
Analysis Performance
Performance Feedback
Feedback
Desired Characteristics
Desired Characteristics of Proposals
of Proposals and Evaluation
and Evaluation
Description
Description of
of Evaluation
Evaluation of
of Proposals
Proposals
Desired Characteristics
Desired Characteristics Selection of Suppliers
Selection of Suppliers
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Needs Gap – An Example from the
Life of a College Senior
I have a job.
Desired State
Needs
Gap
Actual State
I do not have
a job.
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
The Needs Gap
Produce 1,250 Units Per Day
Desired State
Needs Gap
250 Units Per Day
Actual State
Produce 1,000 Units Per Day
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Types of Buyer Needs
• Situational Needs
• Functional Needs
• Social Needs
• Psychological Needs
• Knowledge Needs
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Multi-Attribute Model
Assessment of
The base score Product or Supplier
Performance (P)
Assessing the Relative
The weight Importance of Each
Characteristic (I)
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Multi-Attribute Model: an Example
Which Job Should I Take?
P I PxI
Compensation 8 .4 3.2
Score
Company A Location 3 .4 1.2
5.8
Training 7 .2 1.4
P I PxI
Compensation 3 .4 1.2
Score
Company B Location 9 .4 3.6
6.4
Training 8 .2 1.6
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Employing Buyer Evaluation Procedures
to Enhance Selling Strategies
• Modify the Product Offering Being Proposed
• Alter the Buyer’s Beliefs about the Proposed
Offering
• Alter the Buyer’s Beliefs about the
Competitor’s Offering
• Alter the Importance Weights
• Call Attention to Neglected Attributes
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Complex Mix of Business Buyer Needs
37%
Functional Level of Influence
On Buyers’ Satisfaction
Attributes
“Must-Haves”
Buyers’
Level of
Satisfaction
Psychological 63%
Attributes Level of Influence
“Delighters” On Buyers’ Satisfaction
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Types of Purchasing Decisions
• Straight Rebuy Buying Situation
– Routinized Response Behavior
• Modified Rebuy Buying Situation
– Limited Problem Solving
• New Task Buying Situation
– Extensive Problem Solving
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Characteristics of the
Three Types of Buying Decisions
Straight Modified New
Rebuy Rebuy Task
Newness of Problem or Need Low Medium High
Information Requirements Minimal Moderate Maximum
Information Search Minimal Limited Extensive
Consideration of New Alternatives None Limited Extensive
Multiple Buying Influence Very Small Moderate Large
Financial Risks Low Moderate High
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Buying Decision Types - Continuum
Straight Modified New
Rebuy Rebuy Task
Habitual and Routine Extensive Consideration
Decision Making and Decision Making
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Communication Styles Matrix
High
Responsiveness
Amiable Expressive
Relationship Oriented
Low High
Slow Paced Fast Paced
Assertiveness Assertiveness
Task Oriented
Analytical Driver
Low
Responsiveness
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Communication Style Flexing
The process by which the salesperson
adjusts his/her communication style to fit
that of the customers in order to facilitate
effective communication.
Ask fact Create a Begin by finding
Ask specific, finding cooperative out the
Need fact-finding questions environment Expressive’s
Discovery questions in a leading to with an open perception of the
systematic what the driver exchange of situation and
manner. values and information vision of the
rewards. and feelings. ideal outcome.
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Buying Center Members
• Initiators
• Users
The roles in the
• Gatekeepers buying center work
together to affects
• Influencers the outcome of the
purchase decision.
• Deciders
• Purchasers
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
Current Developments in Purchasing
Increasing Use of Information Technology
Relationship Emphasis on Cooperation
and Collaboration
Supply Chain Management
Target Pricing
Increased Importance of Knowledge and Creativity
Professional Selling: Module 3: Ingram LaForge Avila
A Trust-Based Approach Understanding Buyers Schwepker Jr. Williams
