THEORIES OF SELLING

THEORIES OF SELLING

Selling Theory

1. “AIDAS” Theory: 

Where A stands for Attention
I stand for Interest
D stand for Desire
A stand for Action
S stand for Satisfaction

Please refer previous blog.
2. Right set of circumstances:
This theory is situation response theory. The major emphasis of the theory is that a particular circumstance prevailing in a given selling situation will cause the prospect to respond in a predictable way. Sales personnel try to apply this theory; although they experience difficulties in many rightful selling situations as it cannot be manipulated. The set of circumstances includes external and internal factors which the salesperson tries to create favorable for getting desired response from a given situation. This theory is known as seller-oriented theory and it stresses that the salesman must control the situation in such a way as to produce a sale ultimately. It stresses the importance of the salesperson controlling the situation.

3. “Buying Formula” theory of selling: This theory is known as Buyer-oriented theory .It looks out at buyer’s side i.e. needs and expectation. The theory supports the thinking process that goes on in prospect’s mind that causes decision to buy/not to buy.
The buyer’s needs or problems receive major attention, and the salesperson’s role is to help the buyer to find solutions. This theory purports to answer the question: What thinking process goes on in the prospects’ mind that causes the decision to buy or not to buy? The name “buying formula” was given to this theory by strong.

The theory is based on the fact that there is a need or a problem for which a solution must be found which would lead to purchase decision, as shown below:

Whenever an individual feels a need, he is said to be conscious of a deficiency of satisfaction. The solution will always be a product or service or both and they may belong to a producer or seller. The buyer develops interest in buying a solution.

In purchasing, the “solution” involves two parts:

1. Product or service or both,

2. The brand name, manufacturer or the salesperson of the particular brand name:

The product or service (Brand name) must be considered adequate to satisfy the need and the buyer must experience a pleasant feeling or anticipated satisfaction. This ensure the purchase.

4. “BEHAVIORAL EQUATION”THEORY: J.A.Howard explains buying Behavior in terms of purchasing Decision process viewed as phases of learning process. The process is using Stimuli-Response Model. Four essentials elements required in learning process to explain buying behavior and purchasing decision process.

Drives: This is a strong internal stimuli that impel the buyer’s response. There are two kinds –

1.       Innate drive: stems from physiological needs

2.       Learned drives: such as striving for status or social approval, are acquired when paired with satisfying of innate drives

Cues: This is a weak stimuli when the buyer’s respond.

1.       Triggering cues: activate the decision process for any given purchase.

2.       Non-triggering cues: influence the decision process but do not activate it.

Response is what the buyer does.

Reinforcement: event that strengthens buyers’ tendency of response.

B= P X D X K X V.
B=Response.
P= Predisposition/inward response tendency habit.
D= Present drive level.
K= incentive potential i.e. value of the product/potential satisfaction of the buyer.
V= Intensity of all customer.