PERSONAL SELLING LAB

Q1. What is the difference between the AIDAS theory of selling and the buying
formula theory of selling? Explain by taking the example of any sales situation of
your choice.
ANSWER 1 - AIDAS theory of selling is one of the widest known theories and
is the basis for training materials across numerous organizations. AIDAS stands for
Attention, Interest, Desire, Action, and Satisfaction. The AIDAS theory simply states
that a prospect goes through five different stages before finally responding
satisfactorily to any product. Thus he/s should be led comfortably through all five
stages.

Attention - Gaining attention is a skill and just like any skill, gaining attention can be
improved upon with practice. A common phrase applicable over here is “First
impression is last impression”. The initial attempt of the sales person must be to put
the customer completely at ease. Casual conversation is one of the best openers after
which the sales person can gain customer attention by leading him onto the sale.

EXAMPLE - An example Top of the mind- Mini Cooper!

Mini Cooper, to attract more eyes and attention, used a quirky guerrilla marketing
strategy of placing giant cardboard cartons with torn gift wrapping on the streets

Interest - Once you have gained attention, it is very important to maintain interest.
Some sales people are very good in the opening but as the technicalities take over,
they become uncomfortable while explaining the product. Whereas others who are
strong in the product department might open bluntly but create interest in the second
stage. Maintaining interest is a crucial part of the sales process and hence is included
in the AIDAS theory.

EXAMPLE - let’s consider this campaign by Adidas.

Notice the caption ‘Every team needs the spark’. Lionel Messi’s picture initially
attracts the consumer, the intended audience being sports (especially football)
enthusiasts. The contrasting colours of the shoe and matching caption convey that it’s
a shoe advertisement. The shoe appears to be emitting sparks (representing fast
performance), and the caption contains the same imagery. So the consumer gets
curious and looks up what exactly does the campaign refer to and how can ‘that spark’
be added to the team. At this point, considerable interest has been generated and the
consumer has most likely read up the features of the shoe.
Another good example of generating interest by a brand but in an online world is this
landing page by Buffer which not only showcases the service features but also the
quality validation that 80,000 businesses already use the service.
Desire - Have you seen the commercials wherein you just have to get out of your
house and get the product? Perhaps a car, an ice cream or a house. The same has to be
done by the sales person in personal selling. He has to create enough desire in the
customers mind such that he immediately has to buy the product. Imagine an aqua
guard salesman or a Tupperware salesperson. They highlight the product in such a
manner that you might be thinking “Why didn’t I buy this product before”. Thus,
kindling that desire becomes an integral part of the AIDAS selling theory.

EXAMPLE - How L’Oréal does it.

It caters to consumers’ concerns regarding a product and offers advice for the same. It
curates a lot of content on skincare and beauty tips. Once a person reads up a haircare
routine, for example, she will be more comfortable following that routine if she has
L’Oréal products since she would know exactly how much to use and how to use.
L’Oréal also utilizes that as an opportunity to create a L’Oréal ecosystem by
promoting its other brands within the same space, leading to cross-selling
opportunities.

Action - Although there may be desire for the product, the customer might not act on
it. He might want to buy the product but he might NOT buy it. In such cases the
customer needs to be induced. There are various ways to induce the customer such
that he buys the product. It is important for the sales person to understand whether to
directly induce the customer or whether to push subtle reminders that you are there for
a sales call. Both methods work, but you need to know your customer.

EXAMPLE - Amazon encourages purchases through its ‘EMI options’. That enables
consumers to buy durables and gadgets even when they’re running on a tight budget.

Satisfaction - What would you do after the customer has given the order? Will you
stand up, Point at him and shout “Fooled ya”. I don’t think so. The customer has just
parted with his money. Just like you part your money and expect good service, he
expects the same too. So even after he has bought the product, you need to reassure
the customer that he has made the right decision. The product is good for the customer
and you only presented the product. It was his decision and he is right about it. These
small cues post the sales process really give confidence to the customer and he then
looks forward to your product rather than thinking whether or not he/s has made the
right decision.

EXAMPLE – satisfaction is something which you feel for example driving a car or
cool air coming from AC.

“Buying Formula” Theory of Selling:

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 prospect’s 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
ensures the purchase.

Q2. Write short notes on any four of the following:

A. Seven-Step Selling Process

7 Selling Process Steps
The process of selling a product covers various steps like prospecting, pre-approach,
approach, presentation, handling objections, closing & follow-up with customers. The
7 steps of selling process are explained below in detail:
1. Prospecting
The first step in selling process in which potential customers are identified by the
salesperson is called prospecting.
2. Pre-approach
The stage where the salesperson collects information about the potential customers
and understands them before making the sales call is called pre-approach.
3. Approach
Approach is the step where the salesperson actually meets the customer for the first
time.
4. Presentation
The step wherein the salesperson talks about how the product will satisfy the
customer’s needs and add value to his/her life is called presentation.
5. Handling Objections
In this step, the salesperson clarifies all the doubts and questions that the customer has
and eliminates all his objections to buying the product.
6. Closing
The step in which the customer is asked to place and order for the product is called
closing.
7. Follow-Up
This is the final step in the selling process where the salesperson follows up with the
customers to ensure satisfaction and builds the relationship in order to repeat business
with them.
Example of Selling Process
Let us assume a newly open gym in a posh locality to understand the selling process
steps. The gym owners will first search for prospects who can afford the gym fees and
are in need of accessing a gym with facilities. The pre-approach & approach stages
would be when the owners of the gym would market the brand through leaflets,
brochures etc. This would entice the people to give a call and arrange for a visit to the
gym. Here the gym amenities, facilities, instructors etc. would be shown, which would
be a part of the presentation and demonstration. The queries regarding fees, trainers,
equipment etc. would be handling the objections of the prospect. Once a person is
satisfied, they would be willing to join the gym by paying the fees & hence that would
be closing the deal in the selling process. Follow-up would ensure that the customer
keeps on attending the gym in the future as well.
B. Order Taker vs Order Getter
ORDER TAKERS - An Order Taker can be defined as a sales person who collects
orders but does not attempt to find new customers or persuade existing customers to
increase the size or frequency of their orders.
They are expected to be accurate. They are also expected to have information about
when the order that has been booked will be delivered to customers. Customers will
often enquire the delivery date from them and they should have answers. Orders takers
are also being prompted to at least prod customers to buy certain other products of the
company besides the ones that they are already buying or increase their quantities of
purchase.
When I think of order takers, I think of a retail cashier/clerk from Wal-Mart or a
grocery store, or an inbound customer service agent who is there to maintain accounts
or transfer you to another person to solve your problem.
I feel that these employees are crucial to any business as they have a major role in
maintaining the business and handling the one-time, short-term customers.
Inside order takers: Retail sales assistants are typical inside order takers. The customer
has full freedom to choose products without the presence or influence of a
salesperson. The salesperson’s task is transactional. He receives payments and passes
over the goods to the customers.
Delivery salespeople: Delivery salespeople are primarily concerned with delivering
the product. There is little attempt to persuade customers to increase the order.
Changes in order size are customer driven. Though delivery salespeople do not try to
influence demand, winning and losing an order is heavily dependent on reliability of
delivery.
Outside order takers: Salespeople visit the customer, but they primarily respond to
customers’ requests rather than actively seek to persuade them. They are being
replaced by the more cost-efficient telemarketing teams who call customers and book
their orders.
ORDER GETTERS - An Order Getter/Maker can be defined as a sales person who
increases the firm’s sales revenue by acquiring orders from new customer and more
orders from the existing customers.
When I think of order getters, I think of sales people from the bank, auto sales, real
estate agents, or someone who just simply has a passion for sales. If you are a sales
person, it comes naturally, and with a little studying, and openness to learn from other
successors, you can be a huge asset to any company.
An order getter persuades a customer to make a purchase. He is a frontline
salesperson, and is in a typical selling job. He is supported by technical support staff
and merchandisers.
I. new business salespeople: The selling tasks are to win new businesses by
identifying and selling to prospects. These salespersons should maintain good
relations with current customers who can provide leads. They should also be prepared
to make a lot of cold calls and visits.
ii. Organizational salespeople: They maintain close long-term relationships with
organizational customers. These salespersons should be very sensitive to customers’
problems on a day-to-day basis. They have to act as mediators between the customer
and the functional departments of their own company. The selling job may involve
team selling where salespeople are supported by product and financial specialists.
iii. Consumer salespeople: They sell to individual customer’s products and services
such as cars, insurance. These salespeople have to be sensitive to customers’ time and
they should not be insistent even when customers have declined to buy. Sensing that a
customer does not want the product is as important as sensing that he may want the
company’s product. A consumer salesperson should be always wary of putting off the
customers by being too persistent. Exemplary behaviour is imperative for consumer
salespersons.
iv. Technical support salespeople: Where a product is highly technical and the
negotiations are complex, a salesperson may be supported by product and financial
specialists who can provide the detailed technical and financial information required
by customers. This may be on-going as part of a key account team or on a temporary
basis with the specialist being called into the selling situation whenever required.
v. Merchandisers: Merchandisers advise on product display in stores, implement sales
promotions, check stock levels and maintain contact with store managers. They
provide support to the sales function in retail and wholesale selling. Salespeople
serving individual outlets are supported by merchandisers.

C. Behavioural Equation Theory

This theory is a sophisticated version of the “right set of circumstances” and this
theory was proposed by Howard, using a stimulus response model and using large
number of findings from behavioural research. This theory explains buying behaviour
in terms of purchasing decision process, viewed as a phase of the learning process,
four essential elements of learning processes included in the stimulus response model
are drive, cues, response and reinforcement, which are given below, in brief:
1. Drive is a strong internal stimulus that impel buyers’ response. Innate drives stem
from psychological needs and learned drives such as striving for status or social
approval.
2. Cues are weak stimuli that determine when the buyer will respond.
Triggering cues activate the decision process whereas new triggering cues influence
the decision process.
3. Response is what the buyer does.
4. A reinforcement is any event that strengthens the buyers’ tendency to make a
particular response.
Howard believed that selling effort and buying action variables are multiplicative
rather than additive.
Therefore, Howard incorporated these four elements into a behavioural equation that
is:
B=P×D×K×V
P = Response or internal response tendency, i.e., the act of purchasing a brand or a
particular supplier.
D = Present drive or motivation level
K = “Incentive potential” that is, the value of product or brand or its perceived
potential value to the buyer.
V = Intensity of all cues: triggering, product or informational.
E. Personal characteristics needed to sell for building long-term relationships.

Must be authentic - People have great BS detectors. Your interest in others and your
desire to make a connection must be authentic. If you are asking questions merely for
appearances, just to make a sale, or to turn the conversation back to yourself, people
will see through you. Not being authentic will earn you a poor reputation. You are
much better served simply coming out and asking for what you want; people will
respect you more. Instead of trying to manipulate people into buying products or
services, you must show them you care. You need to demonstrate that you are
genuinely interested in them and that you realize they are human beings with life, not
just customers you are trying to sell to.

Must be obsessively curious - Those who are the strongest at relationship building
are extremely curious. They are dying to learn about others and their experiences.
They are curious not only about subjects that interest them but also about unfamiliar
subjects. They become investigative reporters, wanting to learn as much as possible
about other people’s lives and passions. They truly enjoy learning. They explore what
makes human beings tick.

Must be a great listener - There is a lot more to being a good listener than just letting
the other person talk. You need to be attentive, patient, make good eye contact, not
interrupt, ask probing questions, and, finally, pause to process what you heard before
responding.

Must have incredible empathy - One of our strongest human talents is the ability to
empathize with another person’s situation. Seeing and understanding someone’s
experience from their perspective, walking in their shoes, is key.

Must love people - No two people are alike. No one is perfect. Everyone is flawed.
Yet everyone has unlimited potential. Human beings are incredible. Everyone has a
story about their life’s journey – what they have overcome, their accomplishments,
their incredible talents, fears, regrets, and dreams. Each human being has a story
inside. The fun is discovering those incredible stories. When you truly serve people,
your goal is not to make money or to get them to do what you want, but to take care of
their needs and desires.

Q3. You are a salesperson responsible for selling computers to business houses.
You have been asked by your manager to visit a newly established US staffing
and recruiting company with 40+ employees. Explain how would you plan your
sales presentation?
Q4. Fill in the blanks with the help of FAB (Feature, Advantage, Benefit). (10
Marks)
“This vacuum cleaner’s high-speed motor _________ works twice as fast
_________ with less effort _________, which saves you 15 to 30 minutes in
cleaning time _________ and the aches and pains of pushing a heavy machine
_________.”