theories of selling

THEORIES OF SELLINGTHEORIES OF SELLING

PRESENTED TO PROF. M R RANA

PRESENTED BY:- ANISHA GUPTA (05-MBA-08)ANKUSH KALGOTRA (06-MBA-08)

THEORIES OF SELLINGTHEORIES OF SELLINGSelling is considered as an art by some and a science by others.

This has produced two contrasting approaches to the theory of selling.

Four Theories of SellingFour Theories of SellingAIDAS

“Right set of circumstances”

“Buying Formula”

“Behavioral Equation”

AIDAS and “Right Set Of Circumstances”

are seller oriented theories.

“Buying Formula” theory of selling is Buyer oriented.

The “Behavioral Equation” theory emphasizes the buyer’s decision process but also takes the salesperson’s influence process into account.

AIDAS theory of sellingAIDAS theory of sellingA-Securing attention.

I-Gaining Interest.

D-Kindling desire.

A-Inducing Action.

S-Building Satisfaction.

““Right Set of Right Set of Circumstances”Circumstances”Theory can be summarized as

“Every thing was right”.

This theory is also known as “Situation-response” theory.

A sales person needs to be well skilled to handle the set of circumstances.

BYUING FOMULA THEORY BYUING FOMULA THEORY OF SELLINGOF SELLING

The name “buying formula” The name “buying formula” has been given by the late has been given by the late E.K. Strong.E.K. Strong.

It is a step-by-step explanation of the buyer’s needs.

Reduced to its simplest form, the mental processes involved in a purchase are

need solution purchase

After adding the fourth After adding the fourth element, it becomeselement, it becomes

Need(or problem) solution purchase

satisfaction

After modification in the After modification in the solution and satisfaction, the solution and satisfaction, the buying formula becomesbuying formula becomes

need product and/or service and trade name purchase satisfaction/dissatisfaction

After adding adequacy and After adding adequacy and pleasant feelings, it becomes pleasant feelings, it becomes

adequacy pleasant feelings

need product and/or service and trade

name purchase satisfaction/dissatisfaction

“Behavioral Equation” Theory

Using a stimulus response model and incorporating findings from behavioral research, J.A. Howard explains buying behavior in terms of the purchasing decision process, viewed as phases of the learning process.

Four essential elements of the learning process included in the stimulus-response model are:

1.DRIVES: a) INNATE DRIVES b) LEARNED DRIVES

2. CUES: a) PRODUCT CUES b) INFORMATIONAL CUES

3. RESPONSE

4. REINFORCEMENT

Howard incorporates these four elements into an equation

B =P * D * k * VWhere

B= response or internal response tendencyP= predisposition or the inward response

tendencyK= incentive potentialV= intensity of all the cues

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