Selling & Sales MGT Week 2

Selling & Sales Mgt.
Buyer Behaviour & the Selling

Process
Types of Buyers
• Individuals
• Producers/Manufacturers
• Wholesalers
• Government agencies
• International partners like distributors,
retailers etc
The Decision Making Unit
• It comprises stakeholders who have the

ability to influence purchase decision
• Such individuals have definite roles to play
regarding the purchase of products
The Decision Making Unit
• Initiator- Person(s) who comes up with the need/idea to buy
• Influencer- Person(s) who shape the outcome of the
decision.
• Decider- Person(s) with power or authority to make decision
• Buyer- Person(s) who make actual purchase decision
• User-Person(s) who eventually uses the product
• Gatekeeper- Person(s) who can prevent the decision from
being made
Consumer Buying Process
a. Need recognition/Need is felt which creates a

purchase problem for a solution.
b. Information search, Sources of market information
c. Evaluation of alternative -Brand, Quality, Features,
Benefits etc.
d. Purchase decision, Influenced by perceived risk,
cost among others
e. Post-purchase evaluation/review
What could Vary the decision?
• The strength of the purchase need/problem

• The nature of the product
• The value of the item
• Who is involved in the buying process
• Who will use the items bought
What Could Vary the Decision
• The length of search time for the product

• The ease of decision-making
• The convenience of purchase
• After sales confidence of the buyer and the
user of the product
The Corporate Buying Process
1.Need recognition
2.Define customer product need
3.Developing product specification
4.Search for qualified suppliers
Corporate Buying Decision
5. Acquisition & analysis proposals

6. Evaluation of proposal and selection of
suppliers
7. Purchase decision followed by placing
of purchase order
8. Evaluation of product performance
Organizational Buying Decisions
New task-
• This is where consumers buy new products for
the first time.
• Customers have limited knowledge of products.
• As rational consumers, they turn to ask more
questions about the product before purchase.
Organizational/Corporate Buying Decision
Straight Re-buy-
• Buying the same product from the same source
over and over again.
• Such consumers have considerable knowledge
which influences the purchase of products.
• Salesmen are required to build sustainable after-
relationships to win future business deals.
Organizational Buying Decision
Modified Re-buy-
• Customers know or have an idea of the
product but require some degree of
improvement/specification of the same
product.
Industrial Products
• These are goods that are meant to be sold primarily for
use in producing other goods or rendering services as
compared with goods destined to be sold primarily to
the ultimate consumer.
• They include accessory equipment; installations;
component parts; maintenance, repair, and operating
items and supplies; raw materials; and fabricating
materials.
Industrial Products
• Complex product lines
• Industrial goods are usually complex because they can
be highly technical.
• These products are used by highly skilled people
• Such products have a high purchase value
• Industrial goods typically have a higher price tag
because of their complex nature and limited target
market.
Characteristics of Industrial Products
• Products with high value
• Products in high quantities
• Well-documented and detailed buying process
• Logical buying process
• Few buyers
• Professional buying
• Derived demand
Characteristics of Industrial Products
• Raw materials
• Capital goods
• Bulk purchase
• Reciprocal buying
• Geographic concentration
• Lease-out purchase
Examples of Industrial Products
• Installations — Factory machinery
• Accessories — Power generators
• Raw materials —Cotton, timber, water, clay, paper etc
• Manufactured parts — Radiator, battery, etc., needed by
a car manufacturer.
• Supplies or Consumables — Lubricants, oils, power etc.
• Services- consultancy, financial services, haulage, courier,
IT solutions etc
Types of buying Decisions
• Habitual buying
• Variety seeking buying
• Dissonance reducing buying
• Complex buying
• Impulse buying
New Trends in Corporate Buying
• Increasing importance of purchasing agents
• Centralized purchasing approach of firms where a
purchase is made probably at the Head Office for the
entire firm
• Global sourcing
• Supply chain management
• Just-in-time (JIT) buying strategies
The Selling Process
a. Prospecting
b. Pre-approach
c. Planning the sales call
d. Approaching the prospect
e. Presenting the sales message
f. Dealing or handling sales objections
g. Closing the sales
h. Sales follow up
The Place of Selling in the Marketing Plan
Contribution to the Sales Function
a. An analysis of the current market situation (Marketing Audit)
b. Determine the sales potential through forecasting
c. Generating and selecting sales strategies
d. Sales budget implementation and control

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Selling & Sales MGT Week 2

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Selling & Sales Mgt.

Buyer Behaviour & the Selling

• It comprises stakeholders who have the

a. Need recognition/Need is felt which creates a

• The strength of the purchase need/problem

• The length of search time for the product

5. Acquisition & analysis proposals

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