Theories of Selling.ppt

theories of selling

1. THEORIES OF SELLING
By
Presented by
Mr. Rohit A. Pawar*
*Assistant Professor, B.Sc, M.B.A, M.Phil., (Ph.D Research Scholar at RCU, Belagavi)
[Kolhapur Institute of Technology‟s, Institute of Management Education and Research,
Gokul Shirgaon, Kolhapur.

2. INTRODUCTION
Thetheoriesofsellingemphasizeson“whattodo”
and“howtodo”ratherthan“why”.Therearefour
theoriesofsellingsuchas:
1.“AIDAS”theory
2.“Rightsetofcircumstances”theory
3.“Buying-formula”theory
4.“Behaviouralequation”theory.

3. AIDAS THEORY
“AIDAS”theoryand“Rightsetofcircumstances”
theoryisselleroriented.
“Buying-formula”theoryisbuyeroriented
and“Behaviouralequation”theoryemphasizesthe
buyer’sdecisionprocessbutalsotakesthesales
person’sinfluenceprocessintoaccount

4. Theories of
Selling (AIDAS
Theory)
Attention
Interest
Desire
Action
SatisfactionAIDAS
AIDAStheory,aftertheinitialsofthefivewordsusedtoexpressit
(attention,interest,desire,actionandsatisfaction).Duringthesuccessful
sellinginterview,accordingtothistheory,theprospectsmindpasses
throughfivesuccessivementalstates:Attention,Interest,Desire,Action
andSatisfactionconsciously,sothepresentationmustleadtheprospect
throughthemintherightsequenceifasaleistoresult.

5. AIDAS Theory
Thesellerhastoaccomplishthepresentationtaskin
thefollowingsequenceaccordingtothetheory
SecuringAttention:Themainaimistoputthe
prospectintoareceptivestateofmindsothatthe
prospectpayattentiontothepresentation.Thesales
personmustestablishgoodrapportatonce.
Favourablefirstimpressionsaretobeassuredinfirst
step.
GainingInterest:Thesecondgoalistointensifythe
prospect’sattentionsothatitevolvesintostrong
interest.Manytechniquesareusedtogaininterest
suchasshowingvisualaids,flipcharts,technicalaids
etc

6. AIDAS Theory
KindlingDesire:Thethirdgoalistokindlethe
prospect’sdesiretotheready-to–buypoint.The
salespersonmustkeeptheconversationrunning
alongthemainlinetowardthesale.Theobjectionsto
behandledcarefullyandthedesireofthebuyertobe
arouse
InducingActions:Thepresentationmayarousestrong
desireinthebuyer’smindtobuybutthesalesperson
mustinducetheprospecttoact–thattheprospectto
buyasbuyingisnotautomatic.Thesalespersonwill
trytofindouttherighttimetoclosethesalewiththe
positiveactionfromthebuyer’sagreementtobuy.

7. AIDAS Theory
BuildingSatisfaction:Afterthecustomerhasgiventhe
order,thesalespersonshouldreassurethecustomer
thatthedecisionwascorrect.Thesalespersonshould
leftanimpressioninthebuyer’smindthathemere
helpedthebuyertodecidetobuy.

8. (“Right Set Circumstances” Theory of Selling)
Thistheorysometimescalled“Situation-Response”
theoryanditemphasizesoncreatingaright
circumstanceorsituationbythesalespersonsothat
hesucceedsinsecuringtheattentionandgainingthe
interestoftheprospect,andifthesalesperson
presentstheproperstimuliorappeals,thedesired
response(thatisthesale)willresult.Thisisaseller-
orientedtheoryandstressesuponthesalesperson
controllingthesituation
Thisisabuyerorientedtheorytooanditemphasizes
onthebuyer’ssideofthebuyer-sellerdyad.The
buyer’sneedsorproblemsreceivemajorattention,
andthesalesperson’sroleistohelpthebuyertofind
solutions.

9. (“Right Set Circumstances” Theory of Selling)
Thistheorytreatsthejobofasalespersonasproblem
solving.Thepurchasemustsolvebuyer’sproblem
andwhenthepurchasegivessatisfactionthebuyer-
sellerrelationshipwillcontinue

10. (“Right Set Circumstances” Theory of Selling)

11. (“BuyingFormula”TheoryofSelling)
Toensurepurchase,theproductorserviceandthetrade
name(thatthesourceofsupply)mustbeconsidered
adequate,andthebuyermustexperiencea(pleasant)
feelingofanticipatedsatisfactionwhenthinkingofthe
productand/orserviceand/orthetradename.

12. (“BehaviouralEquation”Theory of Selling)
J.AHowardexplainsbuyingbehaviorintermsofthepurchasing
decisionprocess,viewedasphasesofthelearningprocess.
Fouressentialelementsofthelearningprocessincludedinthe
stimulus-responsemodelaredrive,cue,responseand
reinforcement,describedasfollows:
1.Drives:arestronginternalstimulithatimpelthebuyer’sresponse,
andareoftwokinds:
a)Innatedrives:stemfromthephysiologicalneeds,suchas
hunger,thirst,pain,cold,naturalhumandesires
b)Learneddrives:suchasstrivingforstatusorsocialapproval,are
acquiredwhenpairedwithsatisfyingofinnatedrives,in
marketingthelearneddrivesaredominantineconomically
advancedsocieties

13. (“BehaviouralEquation”Theory of Selling)
2.Cues: are weakstimulithatdeterminewhenthebuyerwill
respond.
a)Triggeringcues:activatethedecisionprocessforanygiven
purchase.
b)Non-triggeringcues:influencethedecisionprocessbutdonot
activateit,andmayoperateatanytimeeventhoughthebuyeris
notcontemplatingapurchase.
Triggeringcuestakeabuyertothebuyingpointandnon-triggering
cueshelpinselectingtheproductandmakingapurchasedecision.

14. (“BehaviouralEquation”Theory of Selling)
Non-triggeringcuesaretwokinds:
(i)Productcues:areexternalstimulireceivedfromthe
productdirectly,forexamplecolourofthepackage,weight,
orprice.
(ii)Informationalcues:areexternalstimulithatprovide
informationofasymbolicnatureabouttheproduct.Such
stimulimaycomefromadvertising,conversationwithother
people(includingsalespersonnel)andsoon.

15. (“BehaviouralEquation”Theory of Selling)
C)Specificproductinformationcuesmayalsofunctionas
triggeringcues.Thismayhappenwhenpricetriggersthe
buyer’sdecision.
3.Response:iswhatbuyerdoes.
4.AReinforcementisanyeventthatstrengthensthebuyer’s
tendencytoarriveataparticularresponse.
Howard incorporated these four elements into an equation:
B = PX DXKX V

16. (“BehaviouralEquation”Theory of Selling)
B=Responseofthebuyer
P=Predispositionorforceofhabit
D=Drivelevelofthebuyerormotivationtobuy
K=“Incentivepotential”,thatisthevalueoftheproductor
itspotentialsatisfactiontothebuyer.
V=Intensityofallcues:triggering,productor
informational

17. (“BehaviouralEquation”Theory of Selling)
Therelationamongthevariablesismultiplicative.Thus,if
anyindependentvariablehasazerovalue,‘B’willalsobe
zeroandthereisnoresponse.Nomatterhowmuch‘P’is
theremaybe,iftheindividualisunmotivated(D=0),there
isnoresponse.
When‘K’valueismore,‘P’increasesinvalue,meanswhen
thesatisfactionismorethereinforcementoccursandthe
tendencytomakeresponseinfutureincreasesandasa
resultthebuyerwillbuytheproductnexttimethecue
appears.

18. ThankYou