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Theories of Selling

By:- Vijay Kamboj
1. AIDAS Theory of Selling
ïŹ Prospect

goes through Five Stages I.e Attention,
Interest, Desire, Action and Satisfaction
ïŹ Sales Presentation must be structured in a manner
that that leads the prospect in the right sequence
ïŹ Securing Attention:
– Receptive State of mind
– Sales Person to have a reason to conduct the interview
– Conversation openers
– Remarks about the Prospect
AIDAS
ïŹ Gaining

Interest:

– Intensify the prospect's attention
– Searching the most effective selling appeal
– Questions to clarify attitudes and feelings towards the

product
ïŹ Kindling

Desire:

– Kindle the prospect's desire to Ready-to-buy point
– Conversation running along the main line towards the

sale
– Taking care of External interruptions and Objection
handling
AIDAS
ïŹ Inducing

Actions:

– Closing the sales buy judging the prospects reaction
– Straightforwardly asking for the order vis-à-vis

dropping the hints
ïŹ Building

Satisfactions:

– Reassuring that the decision was right
– Customer to have an impression that salesperson

merely helped in deciding
2. “Right Set of Circumstances” Theory
ïŹ Everything

was right for the sale
ïŹ Situation Response Theory
ïŹ Particular circumstance in a selling situation
cause the prospect to respond in a particular way
ïŹ Salesperson needs to present PROPER STIMULI
or APPEALS so that desired response is resulted
ïŹ Seller oriented Theory
ïŹ External Factors vis-Ă -vis Internal Factors
ïŹ Focus on the external factors at the expense of
Internal Factors
3. Buying Formula Theory
ïŹ Emphasizes

the Buyer’s side of the Buyer Seller

Dyad
ïŹ Buyer’s needs or problems receive the major
attention and the salesperson’s role is to find
solution
ïŹ Buying formula is a schematic representation of a
group of responses arranged in a psychological
sequence
ïŹ Emphasizes the Prospect’s responses
Buying Formula Theory
ïŹ Simplest

Model:
Need (Problem) – Solution – Purchase
ïŹ Outcome of a purchase affects the chance that a
continuing relationship will develop between
buyer and seller
Need (Problem) – Solution – PurchaseSatisfaction
Buying Formula Theory
ïŹ Need

is always satisfied by a solution in terms of
product or services accompanied by respective
Trade or Brand Name
Need (Problem) – Solution – Product or
Service/ Trade or Brand Name - PurchaseSatisfaction
ïŹ To ensure purchase, the product or service & the
Trade Name must be considered adequate and the
buyer must experience feeling of anticipated
satisfaction
Buying Formula Theory
(Adequacy/Pleasant)
Need (Problem) – Solution – Product or Service/
Trade or Brand Name - Purchase- Satisfaction
(Adequacy/Pleasant)
Buying Formula Theory
ïŹ Emphasis

should be placed depending upon kind
of circumstance
ïŹ Need or Problem should be emphasized if Prospect
does not feel a need
ïŹ Association between need and Product must be
emphasized if Prospect does not connect it
ïŹ Association between Brand and Product to be
emphasized if Prospect fails to connect it
ïŹ In case of competition, emphasis should be on
developing the adequacy of the brand name and
pleasant feelings around it.
Behavioral Equation Theory
ïŹ Buying

Behavior in terms of the purchasing process
viewed as phases of learning process
ïŹ Four Essential Elements:
ïŹ Drives:Strong Internal Stimuli that impel the buyer’s
action
– Innate Drives
– Learned Drives

ïŹ Cues:Stimuli

that will determine when buyer will

respond
– Triggering Cues
– Non Triggering Cues
Behavioral Equation Theory
ïŹ Response:

What buyer does
ïŹ Reinforcement: Event that strengthens the
buyer’s tendency to make a particular response
ïŹ Behavioral Equation:
B = P*D*K*V
ïŹ B – Response or purchase of brand
ïŹ P – Predisposition
ïŹ D – Present drive level
ïŹ K- Incentive Potential
ïŹ V –Intensity of all cues

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AIDAS Buying Formula Theories of Selling

  • 2. 1. AIDAS Theory of Selling ïŹ Prospect goes through Five Stages I.e Attention, Interest, Desire, Action and Satisfaction ïŹ Sales Presentation must be structured in a manner that that leads the prospect in the right sequence ïŹ Securing Attention: – Receptive State of mind – Sales Person to have a reason to conduct the interview – Conversation openers – Remarks about the Prospect
  • 3. AIDAS ïŹ Gaining Interest: – Intensify the prospect's attention – Searching the most effective selling appeal – Questions to clarify attitudes and feelings towards the product ïŹ Kindling Desire: – Kindle the prospect's desire to Ready-to-buy point – Conversation running along the main line towards the sale – Taking care of External interruptions and Objection handling
  • 4. AIDAS ïŹ Inducing Actions: – Closing the sales buy judging the prospects reaction – Straightforwardly asking for the order vis-Ă -vis dropping the hints ïŹ Building Satisfactions: – Reassuring that the decision was right – Customer to have an impression that salesperson merely helped in deciding
  • 5. 2. “Right Set of Circumstances” Theory ïŹ Everything was right for the sale ïŹ Situation Response Theory ïŹ Particular circumstance in a selling situation cause the prospect to respond in a particular way ïŹ Salesperson needs to present PROPER STIMULI or APPEALS so that desired response is resulted ïŹ Seller oriented Theory ïŹ External Factors vis-Ă -vis Internal Factors ïŹ Focus on the external factors at the expense of Internal Factors
  • 6. 3. Buying Formula Theory ïŹ Emphasizes the Buyer’s side of the Buyer Seller Dyad ïŹ Buyer’s needs or problems receive the major attention and the salesperson’s role is to find solution ïŹ Buying formula is a schematic representation of a group of responses arranged in a psychological sequence ïŹ Emphasizes the Prospect’s responses
  • 7. Buying Formula Theory ïŹ Simplest Model: Need (Problem) – Solution – Purchase ïŹ Outcome of a purchase affects the chance that a continuing relationship will develop between buyer and seller Need (Problem) – Solution – PurchaseSatisfaction
  • 8. Buying Formula Theory ïŹ Need is always satisfied by a solution in terms of product or services accompanied by respective Trade or Brand Name Need (Problem) – Solution – Product or Service/ Trade or Brand Name - PurchaseSatisfaction ïŹ To ensure purchase, the product or service & the Trade Name must be considered adequate and the buyer must experience feeling of anticipated satisfaction
  • 9. Buying Formula Theory (Adequacy/Pleasant) Need (Problem) – Solution – Product or Service/ Trade or Brand Name - Purchase- Satisfaction (Adequacy/Pleasant)
  • 10. Buying Formula Theory ïŹ Emphasis should be placed depending upon kind of circumstance ïŹ Need or Problem should be emphasized if Prospect does not feel a need ïŹ Association between need and Product must be emphasized if Prospect does not connect it ïŹ Association between Brand and Product to be emphasized if Prospect fails to connect it ïŹ In case of competition, emphasis should be on developing the adequacy of the brand name and pleasant feelings around it.
  • 11. Behavioral Equation Theory ïŹ Buying Behavior in terms of the purchasing process viewed as phases of learning process ïŹ Four Essential Elements: ïŹ Drives:Strong Internal Stimuli that impel the buyer’s action – Innate Drives – Learned Drives ïŹ Cues:Stimuli that will determine when buyer will respond – Triggering Cues – Non Triggering Cues
  • 12. Behavioral Equation Theory ïŹ Response: What buyer does ïŹ Reinforcement: Event that strengthens the buyer’s tendency to make a particular response ïŹ Behavioral Equation: B = P*D*K*V ïŹ B – Response or purchase of brand ïŹ P – Predisposition ïŹ D – Present drive level ïŹ K- Incentive Potential ïŹ V –Intensity of all cues