THEORIES OF SELLING:

Selling is considered an art by some and a science by others and has produced two contrasting approaches to the theory of selling. The first approach distilled the experiences of successful salespeople and to a lesser extent, advertising professionals. Many such persons succeeded because of their grasp of practical, or learned through experience psychology and their ability to apply it in sales situations. These selling theories emphasize the what to do and how to do rather than the why. These theories, based on experiential nowledge accumulated from years of living in the mar et rather than on a systematic, fundamental body of nowledge. The second approach borrowed findings from the behavioral sciences. !ohn ". #oward of $olumbia %raduate School of &usiness was in the forefront of those who adapted the findings of behavioral science to analysis of buying behavior' his behavioral e(uation attempts to develop a unified theory of buying and selling. There are four theories, the first two, the ")*"S theory and the right set of circumstances theory, are seller oriented. The third, the buying + formula theory of selling, is buyer oriented. The fourth, the behavioral e(uation, emphasizes the buyer,s decision process but also ta es the salesperson,s influence process into account.

(1)

AIDAS Theory of Selling

The theory- popularly nown as the ")*"S theory, after initials of the five words express it .attention, interest, desire, action and satisfaction/ is the basis for many sales training programs are organized. "ccording to the theory, the prospect,s mind passes through five successive mental states0 attention, interest, desire, action, and satisfaction so the sales presentation must lead the prospect through them in the right se(uence if a sale is to result. The psychological writings of 1illiam !ames support this theory. )ts construct is based upon experimental nowledge. )t was in existence as early as 2343. According to thi theory d!ring the !cce f!l elling inter"ie# the $ro $ect%

&ind con cio! ly $' e thro!gh fi"e !cce i"e &ent'l t'te : 'ttention( intere t( de ire( 'ction 'nd 'ti f'ction) The 'le $re ent'tion &! t le'd the $ro $ect thro!gh te$ in the right e*!ence if ' 'le i to re !lt) (i) Sec!ring 'ttention: )n order to put the prospect into a receptive state of mind, the first few minutes of the interview are crucial. The sales person has to have a reason, or an excuse for conducting the interview. )f he has previously made an appointment, this phase presents no problem, though experienced sales personnel say that even with an appointment, a sales person must possess considerable mental alertness' and be a s illed conversationalist, to survive the start of the interview. "s the prospect realizes the caller is bent on selling something, the sales person must establish good support at once. #e needs an ample supply of 5$onversation 6penness5. "mong other things, favorable first impressions are assured proper attire, neatness, friendliness, amid a genuine smile 7ust before the interview. S ill sales personnel often decide up on conversation openness so that those remar s are about the prospects if they are favorable comments about the prospect8s business. " good conversation opens causes the prospect to relax and sets the stage for total presentation. (ii) G'ining Intere t: Many techni(ues are used to intensify the prospect8s attention so that it evolves into strong interest. Some sales people develop contagious enthusiasm for the product or a sample. S'le $ortfolio ( fli$ ch'rt ( or other "i !'l 'id er"e the '&e $!r$o e #hen the $rod!ct i +!l,y or technic'l) 6ne should search out the selling appeal that is most li ely to be effective. Sometimes the prospect drops hints, which the sales person then uses in selecting the best approach. Some sales person stratagems to elicit revealing (uestions to encourage hints by the prospects. 6thers are the prospect (uestion designed to clarify attitudes and feelings towards the product. &ug before identifying the strongest appeal even experienced sale person do considerable probing, usually of

the (uestion - and - answer variety. The $ro $ect% intere t 're 'ffected +y +' ic &oti"'tion ( clo ene of the inter"ie# !+-ect to the c!rrent $ro+le& ( it ti&eline ( 'nd their rece$ti"e( ,e$tic'l or ho tile &ood) In electing the '$$e'l to e&$h' i.e the 'le $er on &! t t',e 'll the e into 'cco!nt. (iii) /indling De ire: The sales person must eep the conversation running along the main line toward the sale to indle the prospect8s desire to ready - to - buy point. The development of sales obstacles the prospects ob7ections, external interruptions, and digressive remar s may sidetrac the presentation during this phase. 6bstacles must be faced and ways found to get around them. 6b7ections need answering to the prospects satisfaction. Time is saved, and the chance of ma ing a sale improved if ob7ections are anticipated and answered before the prospects raises them. %ood sales people summarize what has been said earlier before continuing. *igressive should be disposed of fact fully, with finesse, but sometimes distracting depression is best handled bluntly for example 5 well0 that8s all very interesting but to get bac to the sub7ect...5. (i") Ind!cting Action: )f the presentation has been perfect, the prospect is ready to buy. #owever, buying must be induced. 9xperienced sales personnel do not close until the prospect is fully convinced of the merits of the proposition. The trial close, the close on a minor point, and the tric close are used to test the prospect8s free action. :or fear of getting 5;o5 from which they thin there is no retreat some sales personnel never as for definite 5yes5 or 5;o. &ut it is better to as for the order straight forwardly. (") 0!ilding S'ti f'ction: The sales person should reassure the customer that his buying decision is correct and that sales person merely helped in deciding. The order is the climax of the selling situation. &uilding satisfaction means than ing the customer for the order,

and attending to such matter as ma ing certain that the order is filled as written, and following upon promises made. For e1'&$le2 Sec!ring 'ttention +Telling about <6 water purifier and its (uality to purify water G'ining Intere t + by showing flipcharts, presentations and brochures and also focusing on purity and health of the family members. /indling De ire + to ma e them use the <6 water purifier for their use Ind!ction + consumer purchase the product due to its effectiveness in providing pure and germ free water 0!ilding S'ti f'ction + appreciate the customer by saying that he has made the good purchase by relating its health factor .

(2) RIGHT SET OF 3IR345STAN3ES THEOR6 0

This theory sometimes is also called Situation <esponse theory, had its psychological origin in experiments with animals and holds that the particular circumstances prevailing in a given selling situation cause the prospect to respond in a predictable way. )f the sales person succeeds in securing the attention and gaining the interest of the prospect, and if the salesperson presents the proper stimuli or appeals, the desired response will result. :urthermore the more s illed the salesperson is in handling the set of circumstances, the more predictable is the response. The set of circumstances includes factors external and internal to the prospect. To use a simplified example, Suppose a salesperson sales to the prospect, =et,s go out for lunch. The salesperson and the remar s are the external factors. &ut at least > factors internal to the prospect affect the response. These are the presence or the absence of desires .2/ :irst to go out for lunch .?/ To have it now

.@/ To go out .>/ To go out with salesperson

Aroponents of this theory tend to stress external factors and at the expense of internal factors. They see selling appeals that evo e desired responses. Sales personnel who try to apply the theory experience difficulty traceable to internal factors in many selling situations, but the internal factors are not readily manipulated. This is a seller oriented theory0 it stresses the importance of the salesperson controlling the situation, does not handle the problem of influencing the factors internal to the prospect, and fails to assign appropriate weight to the response side of the situation response interaction. For e1'&$le Suppose you provide a Aaying guest accommodation as well as provide Tiffin services to those living in A% as well as to others and charge for it.

(7) 80!ying For&!l'9 theory of elling :

This theory emphasizes the buyer,s side of the buyer,s seller dyad. The buyers need or problem receives ma7or attention and the sales person role is to help buyer find solutions. This theory purports0 what thin ing process goes on mind that causes the decision to buy or not to buyB The buying formula is a schematic representation of a group of responses arranged in a psychological se(uence .The formula theory emphasizes the prospects responses and deemphasizes the external factors ,on the assumption that the salesperson, being naturally conscious of the external factors will not overloo them. The mental involved in the purchase are ;eed solution purchase

&ecause the outcome of the purchase affects the chance that a continuing relation will develop between the buyer and the seller and because nearly all sales organizations are interested in continuing relationship. )t is necessary to add a fourth element the fourth elements then are ;eed solution purchase satisfaction

1henever a need is felt or problem recognized, the individual is conscious of a deficiency of satisfaction. 1hen definite buying habit has been established the buying formula is ;eed product service and or trade name dissatisfaction purchase satisfactionC

To ensure purchase the product or service and the trade name must be considered ade(uate, and the buyer must experience a feeling of anticipated satisfaction when thin ing of the product and service and the trade name. )n many cases, an item viewed as ade(uate is also li ed, and vice versa, but this is not always so. Some products and services that are (uite ade(uate are not li ed and bought that are admittedly not as good as competing items. Similar reasoning applies to trade names. Some sources of supply are both ade(uate and li ed, others are ade(uate but not li ed, and still others are li ed but patronized even though they are inade(uate to competing sources. 1ith ade(uacy and pleasant feelings included, the buying formula becomes "de(uacy "de(uacy

;eed

product andC or trade name Service

purchase

satisfaction

Aleasant feelings

Aleasant feelings

1hen a buying habit is being established, the buyer should now why product or service is an ade(uate solution to the need or problem, and why trade name is the

best name to buy. The buyers must also have a pleasant feeling toward the product or service and the trade name. Then, whenever the buyer,s habit is challenged by a friend,s mar , a competing salesperson,s presentation, or a competitor,s advertisement, the buyer needs reasons to defend the purchase, and, in addition, he or she needs a pleasant feeling toward both the product or service and the trade name. The primary elements in a well established buying habit are those connected by solid lines, on the central line of the formula. Most purchases are made with scarcely a thought as to why, and with a minimum of feeling. "nd it should be the constant aim of the sales person and advertiser to form such direct associations. <easons .ade(uacy of solution/ and pleasant feelings constitute the elements of defense in the buying habit. "s long as they are present, repeat buying occurs. The answer to each selling problem is implied in the buying formula, and differences among answers are differences in emphasis upon the elements in the formula. )t may be said that .2/)f the prospect does not feel a need or recognize a problem that can be satisfied by the product or service, the need or problem should be emphasized.

.?/)f the prospect does not thin of the product or service when he or she feels the need or recognizes the problem, the association between need or problem and product or service should be emphasized.

.@/)f the prospect does not thin of the trade name when he or she thin s of the product or service, the association between the product or service or trade name should be emphasized. .>/)f need or problem, product or service and trade name are well associative, emphasis should be put upon facilitating purchase and use. .D/)f competition is felt, emphasis should be put upon establishing in the prospects, minds the ade(uacy of the trade name product or service, and pleasant feelings towards it. For e1'&$le:

Suppose a salesperson goes to a lady and wants to sell a water purifier. #e will tell about the effectiveness of the purifier in cleaning water and ma ing it purer and safer. #e will place the water purifier as the solution for pure and germ free water. 1hen the lady purchases the water purifier it depends on her whether she gets satisfied or not. )t is not possible that the water purifier provides the same ade(uacy and pleasant feeling to all. The water purifier may give ade(uate and pleasant feeling and the lady may purchase it and it will provide her satisfaction. There may be other products in the mar et that can provide more ade(uacy and feeling.

(:) 0eh'"ior'l E*!'tion Theory: Esing stimuli + response model, this theory has developed. :our essential elements re(uired in learning process to explain buying behavior and purchasing decision process. *rive + a strong internal stimulus that impel the buyer,s response .i/ )nnate drive .psychological/
(ii)

=earned drive .statusCsocial/

:or example0 innate drive +you are hungry =earned drive + you want to have burger $ues + 1ea stimuli when the buyer,s respond .i/Triggering cue + activates decision process for a given product and evo es you to buy a product. :or example 0 you are hungry and want to have burger .ii/ ;on + triggering cue + influences the decision process but not activate. )t can be of two types for the product which helps to ma e opinion for decision process and the information which you get from advertisements, sales promotion etc. :or example 0Fou believe Mcdonalds provides the cheap and the best burger with (uic est service time.

.iii/ Specific product C information + also functions as triggering cue. :or example special offersCdiscounts on cold drin and :rench fries with the burger. <esponse0 1hat buyer doesB 9xample buyer can purchase or not <einforcement + event that strengthens buyer,s tendency of response. 9xample0 convenience, time saving and money factor also. &GAH*HIHJ &G<esponse AG AredispositionC inward response tendency habit *G Aresent drive level IG incentive potential i.e. value, productCpotential satisfaction of the buyer 9xample if predisposition is positive then automatically I is active JG intensity of all customer 9xample here A and I is positive the customer are more loyal towards the products and sales increases.