By:-Mouli and Girish.

MBA II

THEORIES OF PERSONAL SELLING

1. AIDAS THEORY OF SELLING

• Prospect goes through Five Stages I.e Attention, Interest, Desire, Action and Satisfaction

• Sales Presentation must be structured in a manner that that leads the prospect in the right sequence

• Securing Attention:

• Receptive State of mind

• Sales Person to have a reason to conduct the interview

• Conversation openers • Remarks about the Prospect

AIDAS• Gaining Interest:

• Intensify the prospect's attention

• Searching the most effective selling appeal

• Questions to clarify attitudes and feelings towards the product

• Kindling Desire:

• Kindle the prospect's desire to Ready-to-buy point

• Conversation running along the main line towards the sale

• Taking care of External interruptions and Objection handling

AIDAS

• Inducing Actions:

• Closing the sales buy judging the prospects reaction

• Straightforwardly asking for the order vis-à-vis dropping the hints

• Building Satisfactions:

• Reassuring that the decision was right

• Customer to have an impression that salesperson merely helped in deciding

2. “RIGHT SET OF CIRCUMSTANCES” THEORY

• Everything was right for the sale • Situation Response Theory • Particular circumstance in a selling situation cause the

prospect to respond in a particular way • Salesperson needs to present PROPER STIMULI or

APPEALS so that desired response is resulted• Seller oriented Theory • External Factors vis-à-vis Internal Factors • Focus on the external factors at the expense of Internal

Factors

3. BUYING FORMULA THEORY

• Emphasizes the Buyer’s side of the Buyer-Seller Dyad

• Buyer’s needs or problems receive the major attention and the salesperson’s role is to find solution

• Buying formula is a schematic representation of a group of responses arranged in a psychological sequence

• Emphasizes the Prospect’s responses

BUYING FORMULA THEORY

• Simplest Model:

Need (Problem) – Solution – Purchase • Outcome of a purchase affects the chance that a

continuing relationship will develop between buyer and seller

Need (Problem) – Solution – Purchase- Satisfaction

BUYING FORMULA THEORY

• Need is always satisfied by a solution in terms of product or services accompanied by respective Trade or Brand Name

Need (Problem) – Solution – Product or Service/ Trade or Brand Name - Purchase- Satisfaction

• To ensure purchase, the product or service & the Trade Name must be considered adequate and the buyer must experience feeling of anticipated satisfaction

BUYING FORMULA THEORY

(Adequacy/Pleasant)Need (Problem) – Solution – Product or Service/

Trade or Brand Name - Purchase- Satisfaction (Adequacy/Pleasant)

BUYING FORMULA THEORY

• Emphasis should be placed depending upon kind of circumstance

• Need or Problem should be emphasized if Prospect does not feel a need

• Association between need and Product must be emphasized if Prospect does not connect it

• Association between Brand and Product to be emphasized if Prospect fails to connect it

• In case of competition, emphasis should be on developing the adequacy of the brand name and pleasant feelings around it.

4-BEHAVIORAL EQUATION THEORY

• Buying Behavior in terms of the purchasing process viewed as phases of learning process

• Four Essential Elements:• Drives:Strong Internal Stimuli that impel the buyer’s

action • Innate Drives• Learned Drives

• Cues: Weak Stimuli that will determine when buyer will respond • Triggering Cues• Non Triggering Cues • Specific product and information cues

BEHAVIORAL EQUATION THEORY

• Response: What buyer does • Reinforcement: Event that strengthens the buyer’s

tendency to make a particular response • Behavioral Equation: B = P*D*K*V• B – Response or purchase of brand • P – Predisposition • D – Present drive level • K- Incentive Potential • V –Intensity of all cues

3 COMPONENTS OF BEHAVIORAL EQUATION THEORY

• Buyer-seller dyad and reinforcement.

• Salesperson’s influence process.

• Salesperson’s Role in reducing buyers dissonance.

HANDOVER THE SATISFACTION WHAT CUSTOMER CHERISHES…….

• THANK YOU….