Chapter 3 InClass Exercise Ill Cook His Goose Understanding Buyers Starts with understanding yourselfand being confident in what you are selling Knowledge Bases from Chapter 2 ID: 364173
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Slide1
Understanding Buyers – How and why customers buy
Chapter 3Slide2
In-Class Exercise:
I’ll Cook His Goose!
Slide3
Understanding Buyers
Starts with understanding yourself,…..and being confident in what you are selling.
Knowledge Bases (from Chapter 2):
Industry
Company
Product
Price and Promotion
Service
Market/Customer
Competitor
TechnologySlide4
Adaptive Selling
Adaptive selling
(Chapter 1) entails:
Gathering information about each customer
Observing customers’ reactions during the sales call
Being able to make rapid adjustments during the sales process/call/presentation
Tailoring the sales presentation to each customer’s
social style Slide5
Understanding Social Styles
Assertiveness
Competitive
Rapid movers
Quick decision makers
Initiative takers
Time sensitive
Responsiveness
Friendly
Talkative
Approachable
Less time sensitive
Slower decision makers
More sensitive to others’ feelings Slide6
Understanding Social Styles
Understand and know yourself and your prospect’s dominant personality type.Slide7
Social Styles Matrix
Amiable
“
Show concern for me and my problems”
Supportive
Respectful
Willing
Dependable
Personable
Expressive
“I like competent, imaginative salespeople”
Personable
Stimulating
Enthusiastic
Dramatic
Inspiring
Driver
“Show me bottom line results”
DeterminedDemandingThoroughDecisiveEfficient
Analytical“What I need are practical suggestions”IndustriousPersistentSeriousVigilantOrderly
RESPONSIVENESS
ASSERTIVENESS
Low
High
High
LowSlide8
Appendix for Chapter 3Slide9
In-Class Exercise:
What Makes Him so Successful?
Slide10
Selling From The
Customer’s Perspective
Three conditions constitute a quality buying experience:
Customers believe that salespeople’s assessments of their needs and expectations are good (from quality communication)
Customers experience fulfillment of these needs on a long-term basis due to the salesperson and the sales support team
When customer needs change suddenly, salespeople respond by making every effort to meet new needs
Slide11
Selling to Prospects’
Needs and Wants – a starting point
The goal is to reach a
common understanding
between buyer and seller
This can only happen through the process of disclosure – the giving and taking of information
Do we share any background experiences?
Are our language skills, attitudes, and beliefs similar or dissimilar?
What assumptions have we made about each other based on stereotypes? Slide12
Uncovering Needs and Wants
Salespeople must:
Determine what will
motivate
the prospect to act (not necessarily a purchase)
Understand the
goal orientation
of the prospect
Assess and
adapt to the style
of the prospectSlide13
Types of Buyer Needs
Situational Needs
I need a copier now because I have a major project I need to complete.
I need a copier that sorts and staples.
I need a state-of-the-art copier so I will be recognized as of the technology-savvy people in this company.
I need an extended warranty with a copier.
I need comprehensive training on how to use a copier.
Functional Needs
Social Needs
Psychological Needs
Knowledge NeedsSlide14
Complex Mix of Business Buyer Needs
Buyers’
Level of
Satisfaction
Psychological Attributes
“Delighters”
Functional Attributes
“Must-Haves”
63%
Level of Influence
On Buyers’ Satisfaction
37%
Level of Influence
On Buyers’ SatisfactionSlide15
Categories of Buyers
Manufacturers
Institutions/Governments
Wholesalers, Retailers
Non-Profit Organizations
Business Markets
People (Personal Use)
Consumer MarketsSlide16
Distinguishing Characteristics of Business Markets
Concentrated Demand
Derived Demand
Higher Levels of Demand Fluctuation
Acceleration Principle
Purchasing Professionals
Multiple Buying Influences – Buying teams/centers
Close Buyer-Seller Relationships
–
Ethical Dilemma, page 81Slide17
Buying Decision Process
Recognition of
the Need
Determination of
Desired Characteristics
Description of
Desired Characteristics
Search and Qualification
of Potential Sources
Acquisition & Analysis
of Proposals
Evaluation of Proposals
Selection of Suppliers
Selection of an
Order Routine
Performance Feedback
and EvaluationSlide18
Characteristics of the
Three Types of Buying Decisions
Straight Rebuy
Modified Rebuy
New Task
Newness of Problem or Need
Information Requirements
Information Search
Consideration of New Alternatives
Multiple Buying Influence
Financial Risks
Low
Minimal
Minimal
None
Very Small
Low
Medium
Moderate
Limited
Limited
ModerateModerate
High
Maximum
ExtensiveExtensiveLarge
HighSlide19
Buying Center Members
Initiators
Users
Gatekeepers
Influencers
Deciders
Purchasers
The roles in the buying center work together to affect the outcome of the purchase decision.Slide20
Individual Factors Affecting the Buying CenterSlide21
Multi-Attribute Model
A
procedure
/
tool
for
evaluating
suppliers and products that
incorporates
weighted
averages
across desired characteristics that are important in the buying decision.Slide22
Multi-Attribute Model
Assessment of
Product/Service
or Supplier Performance (P)
Assessing the Relative Importance of Each Characteristic (I)
The base score
The weight
P x I = Attribute ScoreSlide23
Example of the Multi-Attribute Model Process
Vinyl Fabric
Nylon Velvet Fabric
Characteristic
Performance Score
Importance Weight
PxI
Performance Score
Importance Weight
PxI
Comfort
5
9
45
8
9
72
Durability
7
8
56
8
8
64
Guarantee
7
8
56
8
8
64
Price
10
6
60
1
6
6
Evaluation Score
217
152