The document discusses several theories of selling: 1. The AIDAS theory outlines 5 stages a prospect goes through - Attention, Interest, Desire, Action, and Satisfaction. A sales presentation must guide the prospect through these stages. 2. The "Right Set of Circumstances" theory posits that a sale occurs when all external factors are favorable. The seller must present the right stimuli to elicit the desired response. 3. The Buying Formula Theory emphasizes understanding the buyer's needs and finding the appropriate solution. It models the buyer's response as moving from need to purchase to satisfaction.

1. Theories of Selling
Dr. Gopal Thapa
Nepal Commerce Campus

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Buying Formula Theory
(Adequacy/Pleasant)
Need (Problem) – Solution – Product or Service/ Trade
or Brand Name - Purchase- Satisfaction
(Adequacy/Pleasant)

10. 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.

11. 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: Stimuli that will determine when buyer will
respond
 Triggering Cues
 Non Triggering Cues

12. 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