SALES

AND DISTRIBUTION

MANAGEMENT.....Continued

UNIT-I

Theories of Selling--An Overview

There are several Theories of Selling such as:

1.) AIDAS Theory

2.) “Right Set of Circumstances” Theory

3.) “Buyers Formula” Theory

4.) “Behavioural Equation” Theory

•AIDAS Theory of Selling:

•A- Attention

I- Interest

D--Desire

A- Action

S- Satisfaction

A series of successive “Mental States” a buyer has to go through while making a purchase decision

The prospect has to go through these five stages consciously

The Sales presentation must lead the prospect through them in the right sequence if the sale is to result

• Securing Interest: Here the goal is to put the prospect into a receptive state of mind.

• The sales person must built up a good rapport.

• Gaining Interest: Here the goal is to intensify the prospects attention so that it evolves into strong interest

• Sales people develop a contagious enthusiasm for the product or the sample

• When the product is bulky or technical then sales portfolios, flipcharts or other Visual aids serve the purpose.

• Throughout this phase , the hope is to search out the selling appeal that is most likely to be effective.

• The hints dropped by prospects are used by the Sales person to select the best approach.

• They ask questions from the prospects regarding the clarification of attitudes and feelings towards the product or service.

• Even experienced sales people do a lot of probing usually of the question and answer variety before identifying strongest appeal.

• Kindling Desire: The goal is to kindle the prospects desire to the ready to buy point.

• The sales person must keep the conversation running along the main line toward the sale.

• The development of sales obstacles, prospects Objections,external interruptions and digressive remarks can sidetrack the presentation during this phase.

• Obstacles must be faced while objections need answering to the prospects satisfaction

• Time is saved and chance of sale are improved

•External interruptions cause break in presentation and good sales people summarize what has been said earlier before continuing further when conversation resumes

•Digressive remarks should be disposed of tactfully

Inducing Actions: The prospect is ready to act if the presentation is perfect

•However Buying is not done automatically rather it is induced

•Experienced sales person rarely try for a close until they feel that the prospect is convinced regarding the merits of the product

• Building Satisfaction: After the customer has given the order, the sales person must reassure the prospect regarding his decision

• The sales person must applaud him for taking that decision

• Building satisfaction means thanking the customer for the order

• The order finalization is the climax of the selling situation so

• Every effort should be made to avoid the anticlimax situation

“Right Set of Circumstances” Theory

•This theory is based on the asumption “Everything was right for that Sale”

•This is also known as “Situation-Response Theory”

•It is holding the view that particular circumstances prevailing in a given selling situation caused the prospect to respond in a predictable manner

•The set of circumstances includes factors external and internal to the prospect.

“Buyers Formula” Theory•This theory emphasizes the buyers side of the Buyer-seller dyad.

• The buyers needs or problems receive major attention, and the salespersons role is to help the buyer find solutions.

• It focuses on the thinking process which is going on in prospects mind that causes the decision to buy or not to buy

• The buying formula is a schematic representation of a group of responses arranged in psychological sequence.

• The mental process involved in a purchase are

• Need(or problem)----------Product(Service) and Trade Name --------------- Purchase --------------Satisfaction

• There are two important factors involved such as Adequacy and Pleasant Feelings associated with both products as well as Trade Name

• when a buying habit is established , the buyer must know why the product is adequate solution and why the trade name is the best one to buy

• Thus whenever his buying habit is challenged by anybody he needs reasons to defend the purchase

“Behavioural Equation” Theory

•It is a combination of S-R Model and findings from behavioural research •J.A. Howard explains buying behaviour in terms of purchsaing decision process •It is viewed as phases of the learning process•There are four essential elements of the learning process in the S-R model such as

Drive,Cue , Response and Reinforcement

•Drives: They are strong internal stimuli that impel the buyers response. It is of two kinds as Innate Drives Learned Drives

•Cues : are weak stimuli that determine the timing of buyers response. They are also of types such as Triggering Cues Non-Triggering Cues

The Non-Triggering Cue is again of two types such as

•Product Cues

•Informational Cues

Response: It is what the buyer does

•Reinforcement is an event that strengthens the buyers tendency to make a particular response

•Howard has given an equation for this

B = P x D x K x VB--- Response or Internal response Tendency or act of Purchasing

P---- Predisposition or Force of Habit

D--Present Drive Level (or Motivation level)

K--Incentive Potential ( Value of Product or potential satisfaction to Buyers)

V--Intensity of all Cues

Three necessary Factors

• Buyer- Seller Dyad & Reinforcement

• Salespersons Influence process

• Sales persons role in reducing buyers Dissonance