Supplies, both of the organizations are likely to use a much less formalized routine but still, a routine that reflects the different decision phases.
As further illustrated by Figure 3.1, there is a close correspondence between the phases of the buyer’s decision process and the selling activities of the salesperson. It is important that salespeople understand and make use of the interrelationships between the phases of the buying process and selling activities. Effective use of these interrelationships offers salespeople numerous opportunities to interact with buyers in a way that guides the shaping of product specifications and the selection of sources while facilitating the purchase decision.
Phase One-Recognition of the Problem or Need:
The Needs Gap
Needs are the result of a gap between buyers’ desired states and their actual states.
Consequently, need recognition results from an individual cognitively and emotionally processing information relevant to his to his or her actual state of being and comparing it to the desired of being. As illustrated in Figure 3.2, and perceived difference, or need gap, between these two states activates the motivation or drive to fill the gap and reach the desired state. For example, the SnowRunner Company’s daily production capacity is limited to 1,000 molded skimobile body housings. Their research indicates that increasing capacity to 1,250 units per day would result in significant reductions in per-unt costs and allow them to enter additional geographic markets- both moves that would have significant and positive impacts on financial performance. The perceived need to expand production activates a corresponding motivation to search for information regarding alternative solutions and acquire the capability to increase production by 250 units.
However, if there is no gap, then there is no need and no active buying motive. It is common for salespeople to find themselves working with buyers who, for one reason or another, do not perceive a needs gap to be present. Possibly they do not have the right information or lack full understanding of the situation and the existence of options better than their current state. It is also possible that their understanding of the actual state might be incomplete or mistaken. For example, SnowRunner’s buyers might not understand the cost reduction possibilities and increased market potential that could result from increased capacity. As a result, they perceive no need to increase production-the desired state is the same as their actual state. Similarly, the buyers might be functioning with incomplete information regarding the company’s actual state of reduced production capacity due to SnowRunner’s existing molding machines requiring increased downtime for maintenance. Properly realized, this lowering of the actual state would result in a needs gap. Successful salespeople position themselves to assist buyers in identifying and understanding needs as a result of their broader expertise and knowledge regarding product use and application.
Salespeople can also present buyers with information and opportunities that effectively raise the desired state, generate a need, and trigger the purchase decision process. Top performing salespeople understand the importance of assisting their buyers in forming realistic perceptions of the actual state and the desired state. In this manner, the salesperson can continue to serve as a non-manipulative consultant to the buyer while affecting buying motives that vied mutual benefits to all parties. However, it should be noted that the persuasive power of assisting the buyer in determining and comparing desired and actual states can also be misused and lead to unethical and manipulative selling behaviors such as those exhibited in “An Ethical Dilemma,”
Types of Buyer Needs
The total number of potential customer need is infinite and sometimes difficult for sales people to grasp and understand on a customer-by-customer basis. Consequently, many salespeople find it helpful to group customer needs into one of five basic types or cate-gories that focus on the buying situation and the benefits to be provided by the product or service being chosen. These five general types of buyer needs are described as follows:
Situational needs are the specific needs that are contingent on, and often a result of,
Conditions related to the specific environment, thime, 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 out-of-stock status).
Functional needs represent the need for a specific core task or function to be per- formed-the functional purpose of a specific 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 whit some specific and desired affinity group or segment ( e.g., Polo clothing is associated with upper-income, successful prople; ISO 9000 Certification is associated with high-quality vendors; leading e- commerce Web sites include discussion groups to build a sense of community).