Situation 1

Sophisticated Graphic computer industry Industry Practice: Quoting high Prices, Heavy discounts Products priced 10-15% lower, Less discounts Purchasing agents measured by superiors by amount deducted during negotiations Key Learning: Discounts had a significance to buyers that sound pricing logic does not fulfill

Situation 2
AT&T faced competition from a vendor with better technology Customers key decision maker : Ex-Bell employee (big-name system buster) Very less response time to sales threat due to lack of analysis Key Learning: Power, motivation & perceptions of individuals needs to be studied

Major Sales: Who Really Does The Buying

By

Harsh Sharma (113) Vishwam Agrawal (97)

Buying a Corporate Jet

Price tag: more than $3 million Market splits into 2 segments:
Those who already own a jet Those who do not

Salesperson identifies psychological and emotional needs of buying decision

Owner Market Central decision maker: CEO Find the kid inside and impress with raw beauty of the plane Major influencer & Gatekeeper: Pilot, Technical Expert Non Owner Market Even more complex market No precedent/ aviation expert exists

Q1 Whos in The Buying Center?

Buying Center
Initiator: recognizes the problem Gatekeeper: Act as a problem/ product expert Influencers: Who have a say in the purchase and about what is bought Decider: Who say Yes/ No to the purchase Purchaser: Completes purchase, negotiates User: Consume the Product/Service One manager can assume Multiple roles, and viceversa

Q2 Who are the Powerful Buyers?

Q3 What do they want?

Diagnosing motivation
Very important!!! Basic rule of motivation All buyers act selfishly or try to be selfish but sometimes miscalculate and dont serve their own interests

The Buyers decision making process

1) Decompose the product/service into various benefits such as Product feature Price Reliability

2) Segment the potential benefit into various categories

Financial Product/servic e Social/Political Personal

a. Absolute cost saving b. Cheaper than competitors c. Will provide operating cost reductions d. Economies of leasing versus buying

a. Pre and a. Will a. Will post sales purchase purchase service enhance increase b. Specific the buyers liking or features standing respect for c. Space with the the buyer? occupied by buying b. How does unit team or top purchase fit d. Availability manageme buyers self nt? concept?

Buyers Unsure that the desired product will bring the desired benefit

Q4 How do they perceive us?

Outcome: Possible selling approaches

1) The vendor should try to make the buyer concentrate only on the promised benefits 2) The vendor should try to increase the buyers confidence that promised benefits will be realized 3) The vendor should try and change what the buyer wants or which class of benefits he/she responds most strongly

Thank You for your Patience!!!