BECAUSE MORE THAN 1 BUYER IS INVOLVED
Selling to Company is different
from selling to Individuals
DIRECT BUYING CENTERS
The actual members who are going to use
your products or services
The company representative who is going to
interact and carry on the transaction with
These are the actual decision makers who will
taking a decision to buy or not
INDIRECT BUYING CENTERS
They are not the actual decision makers. But
their opinion matters in certain purchase
decision either because their expertise on the
matter or decision maker’s trust on them.
These people have no control over the
decision making process, but they control the
access to decision makers & their influencers.
Steps in Business Buying
General Need Description
Order Routine Specification
To be successful in sales we need goals, right planning & systematic approach. But the most important thing is to have the right mindset.
The agent needs to come across to the customer as a consultant and not as a sales man. To be a good consultantSell yourself first – All great business is based on friendship. Before anything else, it is important for the customer to trust you. Trust is never built between two companies. It is built between individuals involved in the sale.Customers are not looking to buy your product for its features. They are looking for a solution to their problems through your products.Mostly the customers may not know their own problems or they may not know how to explain their problems to you. You need to ask the right questions to be able to understand the real problems of your customers.
Most people see no as a rejection or dismissal. Successful sales people see no as a challenge, more of a postponement than a refusal.When the prospect says no, try to understand… does it mean not now but sometime in future maybe. Or does it mean not yet, i.e. you have not given enough to convince the prospect. Or it means not this one, but may be some other product can solve my problem. However, you should take a no ifThe sale goes against your goals & prioritiesYou can’t deliverYou don’t like dealing with the customerThe customer is better off with another vendorYou don’t have time
Don’t meet your prospect with the purpose of pushing your product, but to find him solutions and to increase his business or profits.
Once a martial arts teacher saw a new student in his class wearing a simple tracksuit. Seeing him practice his moves the master realized that he was already an expert. On discovering that this new student was already a black belt, the master asked him why he was not wearing it. The student replied, “If I come to this class wearing my black belt and thinking I know it all, I won’t learn much. To show my respect to the masters here, I come with an empty hand.”Further explain that to succeed in sales, it is very important to have the right attitude or mindset. A sales man must have a learning attitude. He needs to keep learning about new products, competitors and customers, etc.
Explain the steps in customer buying behavior and the role your marketing can play in each step.
An agent has no time to be complacent because customer satisfaction as an endless process.
The diagram is maslow’s need hierarchy according to this customer desires occur in layers. As one layer of needs gets satisfied, the next one arises. Explain the different levels starting with physiological.
Selling to businesses is an attractive proposition, because usually the size of business is much larger. Usually the buying cycle of a business is much longer than individuals but the volume of order usually makes for the extra effort.Before selling to a business, you should be aware that you are going to deal with more than one person.
Buying centers are different individuals or groups of individuals who will play different roles in the buying process. Direct Buying Centers are the people who are directly involved in the purchase decision.Users – These are the people who are going to use your product. It is very important for the management that these people be satisfied from the purchase decision. Even the problem recognition is done by these people. Usually incase of life insurance the person being insured will be the user.Buyers – They are authorized by the management or decision makers to seek proposals and finalize the vendor. Very often the finance or accounts related departments will be made responsible for insurance purchase.Deciders – The people who may or may not come in direct contact with you, but are actually going to take the decision. The decision makers in most businesses would be the directors, promoters, ceo, etc.
Indirect Buying centers are the individuals or groups of individuals who do not take any direct purchase decisions. These people influence the people who are directly involved in buying behavior. It is important for the sales person to recognize and persuade these people in order for the sale to go through.Influencers – These could be cronies, who are generally close to the decision maker or experts within the company.Gatekeepers – These would be typically the receptionists, guards, peons, secretaries, etc.
The business buying motives are the key reasons or decision making criteria which are considering in making a purchase decision. You must evaluate your offering and compare it with the competitors from time to time, against these parameters.Efficiency – The product or the service is it going to be deliver the results as expected.Economy – The cost of the services in comparison to other vendors and also is it worth its value in terms of expected resultsGood Quality – Is the product or service reliable in terms of qualitySimplicity – Is it going to be simple to use, or it would require extensive training. If training is required, how would the retraining be handled.Sale Ability – Is the product saleable in terms of delivery and packing, etc.
Steps in Business BuyingProblem Recognition – The actual users or their managers determine that there is a problem. Sometimes the agent might go and make them aware of the problem.General Need Description – Buyers or the Decision Makers define the NEED in terms of the problem that they have identified. Sometimes the agent might need to help them redraft their need. For example, the problem is lack of HR funds to pay in case of accidents in the factory shop floor. The management defines the need as increased hr budgets for PAYMENT OF DAMAGES in case of accident. The agent redefines the need as increased hr budgets for INSURANCE PREMIUM.Product specification – The business starts defining the product specifications, like in above case the business will define how many people to be covered and insurance cover for each employee. Agent might help them by educating them about laws and providing case scenarios through his website.Supplier Search – Now the company starts the process of identifying different suppliers.Proposal Solicitation – Very often a formal or informal RFP (Request for Proposal) is floated. The buyer in the company may not have sufficient expertise to create the RFP document.Supplier Selection – Suppliers will be shortlisted and finalized based on the technical and commercial proposals received.Order routine specification – The order procedures, periodicity, size, payment terms and other commercial terms and conditions will be freezed at this stage.Performance Review – The vendor performance will be reviewed from time to time. In case the vendor falls short on management expectation, new vendor will be appointed through the same process.