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Theories and Models of Selling


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This presentation deals with various theories of sales like AIDAS theory, Right set of circumstances theory, buying formula theory, behavioural equation theory. It also discusses the SPIN model of selling and details the Situation, Problem, Implication and Need Pay-off questions at the heart of SPIN Model. This presentation is useful for practicing professionals, professors and students teaching and studying undergraduate and post graduate courses in marketing and sales & distribution management of GGSIP University, University of Delhi and other universities

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Theories and Models of Selling

  1. 1. Models and Theories of Selling Presented by: JATIN VAID
  2. 2. Selling theories  Is selling a science, taught through concepts or an art, learned through experience  Experience psychology V/S Behavioral science  Explain the ‘Buyer – Seller’ process  Seller orientation or Buyer orientation or Both?
  3. 3. Types of Selling Theories 1. AIDAS Theory 2. “Right Set of Circumstances” Theory 3. “Buying Formula” Theory 4. “Behavioral Equation” Theory
  4. 4. 1. AIDAS Theory  Buyers’ mind passes through 5 stages consciously – Attention, Interest, Desire, Action, Satisfaction i. Securing Attention: Good rapport, conversation openers, first impression, attire, smile, social skills ii. Gaining Interest: Visual aids, effective selling appeal, asking questions, brochures, handing over product to customer iii. Kindling Desire: Ready to buy point, Handling objections, summarizing, focus iv. Inducing actions: Sense timing for trial close, asking for orders, reassuring v. Building Satisfaction: Thank customer, reassuring decision, written order, following up promises made
  5. 5. 2. “Right Set of Circumstances” Theory  Also called, ‘Situation – Response’ Theory  Particular circumstances prevailing in a given selling situation will cause the prospect to respond in a particular way  External & internal stimuli  Fails to assign importance to external factors (response)  Salesperson should control the situation to sell effectively  Difficult to apply
  6. 6. 3. “Buying Formula” Theory  Emphasizes the buyer’s perspective (thought process) to buy or not to buy  Buyer’s needs receive major attention & seller’s role is to help buyer find solution.  Buying formula is based on a theory by E.K Strong and arranges responses in a psychological sequence
  7. 7. Buying formula Need Product (And / Or) Brand Name Purchase Satisfaction
  8. 8. 4. “Behavioral Equation” Theory  J.A Howard  Explains buying behavior in terms of purchasing decision process as a learning process Elements: i. Drive: Strong internal stimuli (Innate or learned) ii. Cues: Weak stimuli that determines when buyer will buy (Price, advertisement) iii. Response: What buyer does iv. Reinforcement: An event that strengthens the buyer’s tendency to respond
  9. 9. Behavioral equation B = P X D X K X V Where, B: Buying P: Predisposition D: Drive level K: Incentive potential V: Intensity of all cues
  10. 10. SPIN Model of Selling By, Neil Rackham (1988) Underlying assumptions: i. Relationship selling is customer centric ii. Selling process adapted to customers to deliver personal solutions iii. Ask relevant questions iv. Four kinds of questions: Situation, Problem, Implication, Need-payoff (SPIN)
  11. 11. Steps of SPIN Selling 1. Opening: Builds rapport & establish a buyer – centered purpose for sale call 2. Investigation: Heart of SPIN Model – to ask relevant questions to uncover buyer’s needs (Situation, Problem, Implication & Need – payoff) 3. Demonstrating capability: Explain the benefits of solution and show how the product meets the prospect’s needs 4. Obtaining commitment: To make the prospect agree to advance the sale or make a purchase
  12. 12. i. Situation Questions  Straightforward facts about the buyer’s existing situation & provide a starting place for understanding buyer’s needs  To be asked sparingly to avoid monotony  Based on careful research about customer
  13. 13. ii. Problem Questions  Helps customers recognize their needs & paves way to propose a solution  Helps better understanding of customer’s problem
  14. 14. iii. Implication Questions  Increase a prospect’s motivation to seek change.  Uncover the causes of the problem & its long term consequences  Effective when prospect is the decision maker
  15. 15. iv. Need-payoff Questions  Helps customers to discover a way out by asking how their problem could be resolved  Right ‘Need-payoff’ questions can tell seller how his solutions can help the customer  Highly convincing
  16. 16. Thank You!