information when working with potential suppliers. In working with targeted pricing
requirements, salespeople find they have two fundamental options. They can
meet the required cost level, which often entails cutting their prices, or they can
work with the buyer to better understand and possibly influence minimum performance
specifications. Certain restrictive specifications might be relaxed as a trade-off
for lower pricing. For example, a salesperson might negotiate longer lead times,
fewer or less complex design features, or less technical support in exchange for
lower prices. The latter option requires salespeople to have a high level of knowledge
regarding their products, organizational capabilities, and customer applications
and needs. Just as important is the ability to create feasible options and
effectively communicate them to the buyer.
Increased Importance of Knowledge and Creativity
The increased interdependence between buyer and seller organizations hinges on the
salesperson’s capabilities to serve as a problem solver in a dynamic and fast-changing
business environment. Buyers depend on the salesperson to provide unique and
value-added solutions to their changing problems and needs. To shape such innovative
solutions, salespeople must have broad-based and comprehensive knowledge
readily available and the ability to use that knowledge in creative ways. This includes
knowledge of one’s own products and capabilities, as well as the products and capabilities
of competitors. More important, the salesperson must possess a thorough
understanding of product applications and the needs of the customer to work with
the buyer in generating innovative solutions.
SUMMARY
1. Categorize primary types of buyers. Buyers are classified according to their
unique buying situations that influence their needs, motivations, and buying
behavior. The most common categorization splits buyers into either consumer
markets or business markets. Consumers purchase goods and services for their
own use or consumption whereas members of the business market acquire
goods and services to use them as inputs into manufacturing, for use in the
course of doing business, or for resale. Business markets are further divided
into firms, institutions, and governments.
2. Discuss the distinguishing characteristics of business markets. Business
markets have numerous characteristics that distinguish them from consumer markets.
Among the more common characteristics are consolidation, which has
resulted in buyers being fewer in number but larger in size; demand that is
derived from the sale of consumer goods; more volatile demand levels;
professional buyers; multiple buying influences from a team of buyers; and
increased interdependence and relationships between buyers and sellers.
3. List the different steps in the business-to-business buying process. There are
eight sequential and interrelated phases that make up the business buyers’ decision
process. This process begins with (1) recognition of the problem or need,
(2) determination of the characteristics of the item and the quantity needed,
(3) description of the characteristics of the item and quantity needed, (4) search
for and qualification of potential sources, (5) acquisition and analysis of proposals,
(6) evaluation of proposals and selection of suppliers, (7) selection of
an order routine, and (8) performance feedback and evaluation.
information when working with potential suppliers. In working with targeted pricing
requirements, salespeople find they have two fundamental options. They can
meet the required cost level, which often entails cutting their prices, or they can
work with the buyer to better understand and possibly influence minimum performance
specifications. Certain restrictive specifications might be relaxed as a trade-off
for lower pricing. For example, a salesperson might negotiate longer lead times,
fewer or less complex design features, or less technical support in exchange for
lower prices. The latter option requires salespeople to have a high level of knowledge
regarding their products, organizational capabilities, and customer applications
and needs. Just as important is the ability to create feasible options and
effectively communicate them to the buyer.
Increased Importance of Knowledge and Creativity
The increased interdependence between buyer and seller organizations hinges on the
salesperson’s capabilities to serve as a problem solver in a dynamic and fast-changing
business environment. Buyers depend on the salesperson to provide unique and
value-added solutions to their changing problems and needs. To shape such innovative
solutions, salespeople must have broad-based and comprehensive knowledge
readily available and the ability to use that knowledge in creative ways. This includes
knowledge of one’s own products and capabilities, as well as the products and capabilities
of competitors. More important, the salesperson must possess a thorough
understanding of product applications and the needs of the customer to work with
the buyer in generating innovative solutions.
SUMMARY
1. Categorize primary types of buyers. Buyers are classified according to their
unique buying situations that influence their needs, motivations, and buying
behavior. The most common categorization splits buyers into either consumer
markets or business markets. Consumers purchase goods and services for their
own use or consumption whereas members of the business market acquire
goods and services to use them as inputs into manufacturing, for use in the
course of doing business, or for resale. Business markets are further divided
into firms, institutions, and governments.
2. Discuss the distinguishing characteristics of business markets. Business
markets have numerous characteristics that distinguish them from consumer markets.
Among the more common characteristics are consolidation, which has
resulted in buyers being fewer in number but larger in size; demand that is
derived from the sale of consumer goods; more volatile demand levels;
professional buyers; multiple buying influences from a team of buyers; and
increased interdependence and relationships between buyers and sellers.
3. List the different steps in the business-to-business buying process. There are
eight sequential and interrelated phases that make up the business buyers’ decision
process. This process begins with (1) recognition of the problem or need,
(2) determination of the characteristics of the item and the quantity needed,
(3) description of the characteristics of the item and quantity needed, (4) search
for and qualification of potential sources, (5) acquisition and analysis of proposals,
(6) evaluation of proposals and selection of suppliers, (7) selection of
an order routine, and (8) performance feedback and evaluation.
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