AwarenessAwarenessAwarenessAwareness InterestInterestInterestInterest DesireDesireDesireDesire ActionActionActionActionAdvertisingAdvertisingVeryeffectiveVeryeffectiveSomewhateffectiveNoteffectivePublicPublic Very Very Very NotPublicPublicRelationsRelationsVeryeffectiveVeryeffectiveVeryeffectiveNoteffectiveSalesSalesPromotionPromotionSomewhateffectiveSomewhateffectiveVeryeffectiveVeryeffectivePersonalPersonalSellingSellingSomewhateffectiveVeryeffectiveVeryeffectiveSomewhateffective
Summed up as “Everything Was Right for The Sale.”Situation Response TheoryThis Theory holds that the particular circumstancesprevailing in a given selling situation cause the prospect ina predictable way.The more skilled the salesperson is in handling the set ofcircumstances, the more predictable is the response.
The set of circumstances includes factors external & internal tothe prospect.The salesperson and the remark are external factors.The salesperson and the remark are external factors.Proponents of these theory tends to stress external factors andthe expense of internal factors.This is a seller oriented theory: it stresses the importance of thesalesperson controlling the situation.
Taking a customer for a outing to strike adeal. Ex.Taking him for a 5 star hotel for adinner or lunch and then talk about the dealGoing to star buck or Coffee been for aGoing to star buck or Coffee been for adiscussionAOT - www.tharakadias.com 10
• The name ‘’buying formula’’ has been givenby E.K. Strong.• It emphasizes the buyer’s side of the buyer-seller dyadAOT - www.tharakadias.com 11
Reduced to its simplest form, the mental processesinvolved in a purchase areNeed(or problem) Solution Purchase
After adding the fourth element, it becomesNeed Solution Purchase Satisfaction
After modification in the solution and satisfaction, thebuying formula becomesNeed Product/Serviceand trade namePurchase Satisfaction/Dissatisfactionand trade name
After adding adequacy and pleasant feelings, it becomesPleasant feelingsNeedProduct/Serviceand trade namePurchaseSatisfaction/DissatisfactionAdequacy
if sales to new prospects are desired, every element in theformula should be presented.developing new uses is comparable to selling to new prospects.
Developed using stimuli-response model.Sophisticated and advanced version of the “Right set ofcircumstances” theory.
Requires 4 essential elementsRequires 4 essential elementsRequires 4 essential elementsRequires 4 essential elements----1: Drive-A strong internal stimulus.2: Cues-Weak stimuli when the buyers respond.o Triggeringo Non-Triggering (specific product-eg. special discounts)
3: Response-What does the buyer do?4: Reinforcement- Event that strengthens thebuyer’s response tendency.buyer’s response tendency.
B=P*D*K*VB=P*D*K*VB=P*D*K*VB=P*D*K*VB=Response (e.g. act of buying a product or personalizing asupplier)supplier)P=Predisposition (internal response of tendency or force ofhabit)D=Present drive level or the level of motivationK=value of the product or its potential satisfaction to the buyerV=Intensity of all cues, triggering and non triggering
When a product’s potential satisfaction to thebuyer (K) yields rewards, reinforcement occurs.When P is positive, K is automatically active.When P is positive, K is automatically active.When P and K are positive, customers are moreloyal to the product.
Need problem – identify the need behalf of the customerChoice problem – help to choose the right offerHelping in deciding the choice criteria – helps to select the choice criteriato obviate the problemProduct installation – find the best place to install the product in thecustomers placecustomers placeProduct choose problem – stand by the customers when he encountersdifficulties on product applicationProduct maintenance problems – offers after sales services regularlyCustomer feed back problem – future communication, reporting to thecompany etc.Problem related to quick damages of defects in products within andbeyond warranty periodAOT - www.tharakadias.com 28
Eliciting fullest information and queries from both sidesReducing doubts from both sidesDriving out or marginalizing communication barrierHandling future problems at easeReducing post purchase anxiety of customersReducing post purchase anxiety of customersDiminishing media expenditureStaving off competitive actionMeeting future requirement of both sideAOT - www.tharakadias.com 29
To identify genesis of a buying problemTo define a buying problemTo provide alternative solutions to the problemTo help in evaluating alternative solutions to theTo help in evaluating alternative solutions to theproblemTo help prospects in selecting a specific solutions i.e.purchase decisionAOT - www.tharakadias.com 30
Select team members carefullyHave an orchestrator. In fact a team leader must act at the helm of theteam, who moderates the team effortStage a pre briefing sessionHold a debriefingBe prepared with questions.Be prepared with questions.Keep the number of members to a minimum levelSuccessfully answer questions of the customerBe flexible in the agendaTeam members must be at the same wavelength.Sell something this should be the goalAOT - www.tharakadias.com 32
This is the two way flow of communicationbetween the buyer and the seller for personalselling to take place.AOT - www.tharakadias.com 34
Objectives &StrategiesOrganizationdimensionEconomic value addedAOT - www.tharakadias.com 35Buyer SellerStructural PositioningPeopleSocialCultureLegal
The basic notion of personal selling objective andstrategies should be in line with the corporateobjectives and strategies.Some of these strategies are as followSome of these strategies are as follow1. Retention strategy2. Relational marketing3. Acquisition strategyAOT - www.tharakadias.com 36
LocationSizePower structureDegree of centralizationDegree of centralizationOrganizational orientationRisk takingPurchase situationTypes of contractPersonal relationshipAOT - www.tharakadias.com 37
This value refer to the worth that the sellercreate through products and services thatthey manufacture for the buyers. Buyerreceive it as a cost. Buyer will compare it withreceive it as a cost. Buyer will compare it withthe perceive value.AOT - www.tharakadias.com 38
The formal position of the decision makers inthe buying and selling organization. DMUAOT - www.tharakadias.com 39
Human element in personal selling is centralto dyadic relation1. Interpersonal relationship force to talk2. Discourse2. Discourse3. Convert dissension to acceptance4. Consolidation or relationsAOT - www.tharakadias.com 40
Personal selling is a vehicle to establish asocial link between a buyer and a seller. Asselling is basically a human behavior . Socialingredient and skills for this process is vitalingredient and skills for this process is vitalfor a successful long term relationship.AOT - www.tharakadias.com 41
This also plays a major role like social inbridging the organization and societytogether by shared values and beliefs. Hencethey are supposedly different between twothey are supposedly different between twoorganization there for employees shouldadopt to the organizational culture whichrepresent by the products and services theyofferAOT - www.tharakadias.com 42
Legal element define and control therespective rights and obligations of bothbuyer and sellers.This is a watch dog of freeand fair business.and fair business.AOT - www.tharakadias.com 43