mod03sm
TRANSCRIPT
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Understanding Buyers
Module Three
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Understanding BuyersAn Experts Viewpoint:
Nick LaRoche is an account executive for S.K.K.R., a
manufacturers representative group selling Weber-
Stephens Products. Nick makes an effort to understand his
buyers and the way they do business. For example, Nick
found a way to help one of his customers increase profitssimply by changing the way they purchased Weber
products.
Action
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Understanding BuyersAn Experts Viewpoint:
The amount Nick sold to this account soon doubled.
The relationship between Nick and the buyer hascontinued 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.
Result
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Categories of Buyers
Firms
Institutions
Governments
Non-Profit Organizations
Consumer Markets
Business Markets
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Distinguishing Characteristics of
Business Markets
Concentrated Demand
Derived Demand
Higher Levels of Demand Fluctuation
Purchasing Professionals
Multiple Buying Influences
Close Buyer-Seller Relationships
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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 Evaluation
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Needs Gap An Example from the
Life of a College Senior
Actual State
Desired State
Needs
Gap
I have a job.
I do not have
a job.
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Multi-Attribute Model
Assessment of
Product or Supplier
Performance (P)
Assessing the RelativeImportance of Each
Characteristic (I)
The base score
The weight
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P I PxI
P I PxI
Multi-Attribute Model: an Example
On-line Resume
Service
Campus Career
Services
NetworkingOpportunities
Exposure
of Resume
Quality
Control
Networking
OpportunitiesExposure
of Resume
Quality
Control
.5
.3
.1
.5
.3
.1
8
4
4
4
8
6
2
2.4
.4
4
1.2
.6
4.8
5.8
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Employing Buyer Evaluation Procedures
to Enhance Selling Strategies
Modify the Product Offering Being Proposed
Alter the Buyers Beliefs about the Proposed
Offering
Alter the Buyers Beliefs about the Competitors
Offering
Alter the Importance Weights
Call Attention to Neglected Attributes
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Complex Mix of Business Buyer Needs
BuyersLevel of
Satisfaction
PsychologicalAttributesDelighters
FunctionalAttributesMust-Haves
63%Level of Influence
On Buyers Satisfaction
37%Level of Influence
On Buyers Satisfaction
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Characteristics of the
Three Types of Buying Decisions
StraightRebuy
ModifiedRebuy
NewTask
Newness of Problem or Need
Information Requirements
Information Search
Consideration of New Alternatives
Multiple Buying InfluenceFinancial Risks
Low
Minimal
Minimal
None
Very SmallLow
Medium
Moderate
Limited
Limited
ModerateModerate
High
Maximum
Extensive
Extensive
LargeHigh
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LowAssertiveness
HighAssertiveness
LowResponsiveness
HighResponsiveness
Communication Styles Matrix
Analytical Driver
Amiable Expressive
Slow Paced Fast Paced
Relationship Oriented
Task Oriented
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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
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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