INTRODUCTION

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 knowledge
accumulated from years of “living in the market” rather than on a systematic,
fundamental body of knowledge.
The second approach borrowed findings from the behavioral sciences. John
A. Howard of Columbia Graduate School of Business was in the forefront of
those who adapted the findings of behavioral science to analysis of buying
behavior; his “behavioral equation” attempts to develop a unified theory of
buying and selling. There are four theories, the first two, the “AIDAS” 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 equation, emphasizes the buyer’s decision process but also takes the
salesperson’s influence process into account
AIDA is an acronym used in marketing that describes a common list of events
that may be undergone when a person is selling a product or service. The term
and approach are attributed to American advertising and sales pioneer, E. St.
Elmo Lewis. In 1898 Lewis created his AIDA funnel model on customer studies
in the US life insurance market to explain the mechanisms of personal selling.
Lewis held that the most successful salespeople followed a hierarchical, four
layer process using the four cognitive phases that buyers follow when accepting
a new idea or purchasing a new product.

 A - Attention (Awareness): attract the attention of the customer.

 I - Interest: raise customer interest by focusing on and demonstrating
advantages and benefits (instead of focusing on features, as in traditional
advertising).
 D - Desire: convince customers that they want and desire the product or
service and that it will satisfy their needs.
 A - Action: lead customers towards taking action and/or purchasing.

Using a system like this gives one a general understanding of how to target a
market effectively. Moving from step to step one loses some percent of
prospects.
 AIDAS Theory of Selling

The theory- popularly known as the AIDAS 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. According to the theory, the
prospect’s mind passes through five successive mental states: attention, interest,
desire, action, and satisfaction so the sales presentation must lead the prospect
through them in the right sequence if a sale is to result.
The psychological writings of William James support this theory. Its construct
is based upon experimental knowledge. It was in existence as early as 1898.
According to this theory during the successful selling interview the prospect's
mind consciously passes through five successive mental states : attention,
interest, desire, action and satisfaction. The sales presentation must lead the
prospect through steps in the right sequence if a sale is to result.
(i) Securing attention:

In 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. If 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 skilled conversationalist,
to survive the start of the interview. As the prospect realizes the caller is bent on
selling something, the sales person must establish good support at once. He
needs an ample supply of "Conversation Openness". Among other things,
favorable first impressions are assured proper attire, neatness, friendliness, amid
a genuine smile just before the interview. Skill sales personnel often decide up
on conversation openness so that those remarks are about the prospects if they
are favorable comments about the prospect's business. A good conversation
opens causes the prospect to relax and sets the stage for total presentation.

(ii) Gaining Interest:

Many techniques are used to intensify the prospect's attention so that it evolves
into strong interest. Some sales people develop contagious enthusiasm for the
product or a sample. Sales portfolios, flip charts, or other visual aids serve the
same purpose when the product is bulky or technical. One should search out the
selling appeal that is most likely 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 questions to encourage hints by the
prospects. Others are the prospect question designed to clarify attitudes and
feelings towards the product. Bug before identifying the strongest appeal even
experienced sale person do considerable probing, usually of basic motivations,
closeness of the interview subject to the current problems, its timeliness, and
their receptive, skeptical or hostile mood. In selecting the appeal to emphasize
the sales person must take all these into account.

(iii) Kindling Desire:

The sales person must keep the conversation running along the main line toward
the sale to kindle the prospect's desire to ready - to - buy point. The
development of sales obstacles the prospects objections, external interruptions,
and digressive remarks may sidetrack the presentation during this phase.
Obstacles must be faced and ways found to get around them. Objections need
answering to the prospects satisfaction. Time is saved, and the chance of
making a sale improved if objections are anticipated and answered before the
prospects raises them. Good sales people summarize what has been said earlier
before continuing. Digressive should be disposed of fact fully, with finesse, but
sometimes distracting depression is best handled bluntly for example " well:
that's all very interesting but to get back to the
subject...".

(iv) Inducting Action:

If the presentation has been perfect, the prospect is ready to buy. However,
buying must be induced. Experienced 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 trick close are used to test the prospect's free
action. For fear of getting "No" from which they think there is no retreat some
sales personnel never ask for definite "yes" or "No”. But it is better to ask for
the order straight forwardly.
 (v) Building Satisfaction:

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. Building satisfaction means thanking the customer for the
order, and attending to such matter as making certain that the order is filled as
written, and following upon promises made.
For example-

Securing attention –Telling about RO water purifier and its quality to purify
Water .

Gaining Interest – by showing flipcharts, presentations and brochures and also

Focusing on purity and health of the family members.

Kindling Desire – to make them use the RO water purifier for their use

Induction – consumer purchase the product due to its effectiveness in providing

pure and germ free water

Building Satisfaction – appreciate the customer by saying that he has made the
good purchase by relating its health factor .
 A conversation between Mrs. Verma and a Saleman.

Mrs.Verma: How much do these gift penscost?

Salesman: These gift pens are Rs.1500 each.

Mrs.Verma: That is too expensive. Gift presents . My budget is only

Rs.500.only

Salesman: Then why don’t you buy for your husband a waterman pen? We have
a variety of them.

Mrs. Verma: No, I think I want to gift wine to my husband.

Salesman: Then how about a office briefcase?

Mrs.Verma: He has a fairly new one already.

Salesman: I know what would make a unique holiday Christmas gift. Have a
look at these tie and hand kerchief sets. This is a unique customized gift.

Mrs.Verma: Yes. These are really very smart and unique holiday Christmas
gift.. Yes, I’ll buy this one. I also need gift bows and  gift cellophane paper

Now, I have to buy gift presents for my grown up son and daughter and one for
my younger son, who is nine.

Salesman: For your elder son, I suggest an aftershave lotion or a shirt perhaps?
What is
his collar size?

Not only did the salesman capture Mrs.Verma’s Attention he also sold her other
products that she hadn’t decide to buy. This is indeed a perfect example of
AIDAS. Mrs. Verma was satistfied and she also wanted to make a repurchase
then and there for her son and daughter.