Chapter 3 Understanding Buyers
Acceleration Principle • As demand
Understanding Your Buyers is the Key to Sales
Success
Types of Buyers
Consumer Markets- • purchase goods and
services for their own use or consumption and
are highly influenced by peer group behavior,
aesthetics, and personal taste.
Business Markets- • Business markets are
composed of firms, institutions, and
governments. • These members of the business
market acquire goods and services to use as:
inputs into their own manufacturing process
(i.e., raw materials, component parts, and
capitalequipment) for use in their day-to-day
operations (i.e., office supplies, professional
services, insurance) for resale to their own
customers.
Distinguishing Characteristics of Business
Markets
1. Concentrated Demand -• Small number of
large buyers account for most of the
purchases
2. Derived Demand- • denotes that the
demand in business markets is closely
associated with the demand for consumer
goods
3. Higher Levels of Demand Fluctuations- •
the demand for goods and services in the
business market is more volatile than that of
the consumer market known as the
Acceleration Principle As demand
increases (or decreases) in the consumer
market, the business market reacts by
accelerating the buildup (or reduction) of
inventories and increasing (or decreasing)
plant capacity
4. Higher Levels of Demand Fluctuations- •
the demand for goods and services in the
business market is more volatile than that of
the consumer market known as the
increases (or decreases) in the consumer
market, the business market reacts by
accelerating the buildup (or reduction) of
inventories and increasing (or decreasing)
plant capacity
5. Purchasing Professionals •
Purchasing Agents: tasked in identifying
suppliers and sourcing goods and services •
Results in a more professional and rational
approach to purchasing
6. Multiple Buying Influences -• Buying team
members come from different areas of
expertise and play different roles in the
purchasing process.
7. Close Buyer–Seller Relationships- • The
increased interdependence and desire to
reduce risk of the unknown has led to an
emphasis on developing longterm buyer-
seller relationships characterized by
increased levels of buyer-seller interaction
and higher levels of service expectations by
buyers.
Types of Buyer Needs •
Situational needs- are the specific needs
that are contingent on, and often a result of,
conditions related to the specific
environment, time, and place. • (e.g.,
emergency car repair while traveling out of
town, a piece of customized production
equipment to fulfill a customer’s specific
situational requirements, or providing for
quick initial shipment to meet a buyer’s
outof-stock status).
Functional needs- represent the need for a
specific core task or function to be
performed—the functional purpose of a
specific product or service. The need for a
sales offering to do what it is 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- comprise 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.g., Polo clothing is associated with
upper-income, successful people)
Psychological needs -reflect the desire for
feelings of assurance and risk reduction, as well
as positive emotions and feelings such as
success, joy, excitement, and stimulation
Knowledge needs- represent the desire for
personal development, information, and
knowledge to increase thought and
understanding as to how and why things happen
• (e.g., product information, newsletters,
brochures, along with training and user support
group meetings/conferences provide current
information on products and topics of interest).
Phase Two—Determination of the
Characteristics of the Item and the Quantity
Needed • 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 a preferred solution.
Phase Two—Determination of the
Characteristics of the Item and the Quantity
Needed • Through effective sales conversations,
salespeople use their knowledge and expertise at
this point to assist the buyer in analyzing and
interpreting the problem situation and needs.
Phase Three—Description of the
Characteristics of the Item and the Quantity
Needed • Using the desired characteristics and
quantities developed in the previous phase as a
starting point, buyers translate that general
information into detailed specifications
describing exactly what is expected and
required.
Phase Four—Search for and Qualification of
Potential Sources • Next, buyers must locate
and qualify potential suppliers capable of
providing the preferred solution.
Phase Five—Acquisition and Analysis of
Proposals • Based on the detailed specifications,
requests for proposals (known in the trade as an
RFP) are developed and distributed to the
qualified potential suppliers
Phase Five—Acquisition and Analysis of
Proposals • The salesperson is responsible for
presenting the proposed features and benefits in
such a manner that the proposed solution is
evaluated as providing higher levels of benefits
and value to the buyer than other competing
proposals.
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
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 potential
suppliers.
Phase Seven—Selection of an Order Routine •
Once the supplier(s) has been selected, details
associated with the purchase decision must be extensive purchase decision and search for
settled. information designed to identify and compare
alternative solutions.

3.Modified Rebuys • The buyer has experience

TYPES OF PURCHASING DECISIONS
1.Straight RebuysOften 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 computerized
by using electronic data interchange (EDI) and
e-commerce (Internet, intranet, and extranet) 30
3 TYPES OF PURCHASING DECISIONS
Straight Rebuys
in purchasing the product in the past but is
interested in acquiring additional information
regarding alternative products and/or suppliers. •
As there is more familiarity with the decision,
there is less uncertainty and perceived risk than
for new task decisions. • Typically occurs as the
result of changing conditions or needs.
UNDERSTANDING COMMUNICATION
STYLES
Assertiveness • 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
Responsiveness • Points to the level of feelings
and sociability an individual openly displays.

• 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 computerized

by using electronic data interchange (EDI) and
e-commerce (Internet, intranet, and extranet)

2.New Tasks • Occurs when the buyer is

purchasing a product or service for the first time.
• Buyers have no experience or knowledge • on
which to rely. • Consequently, they undertake an
Amiables • Developing and maintaining close
personal relationships is important.
• Priority ‘‘must-have’’ is to be liked and their
fundamental ‘‘want’’ is for attention.
Expressives • 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 38 3 U
Purchasers • Have the responsibility 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 flow of information to and
between vendors and other buying center
members.

Drivers • “must-have’’ is winning and their

fundamental ‘‘want’’ is results.

Analyticals • ‘‘must-have’’ of being right and

the underlying ‘‘want’’ for analytical activities.

MULTIPLE BUYING INFLUENCES

Buying Teams • Also referred to as buying

centers

• Incorporate the expertise and multiple buying

influences of people from different departments
throughout the organization

Initiators • Individuals within the organization

who identify a need or perhaps realize that the
acquisition of a product might solve a need or
problem.

Influencers • Individuals who guide the

decision process by making recommendations
and expressing preferences. They are often
technical or engineering personnel.

Users • 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 • They have the ultimate responsibility

for determining which product or service will be
purchased • Although buyers may also be
deciders, it is not unusual for different people to
fill these roles.