Theories of Selling

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1
Lecture Outline

- Approaches to Personal Selling

- Theories of selling

A) AIDAS Theory
B) Right set of circumstances Theory
C)Buying formula Theory
D) Behavioural Equation Theory
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 Classification of
Personal Selling
Approaches
 Stimulus Response Selling
 Mental States Selling
 Need Satisfaction Selling
 Problem Solving Selling

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 Stimulus Response Selling

Continue
Salesperson Buyer
Process until
Provides Responses
Purchase
Stimuli Sought
Decision

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 Mental States Selling

Attention Interest Conviction Desire Action

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 Need Satisfaction Selling

Present Continue
Uncover and
Offering to Selling until
Confirm
Satisfy Purchase
Buyer Needs
Buyer Needs Decision

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 Problem Solving Selling

Continue
Generate Evaluate Selling
Define
Alternative Alternative until
Problem
Solutions Solutions Purchase
Decision

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 Consultative Selling

Business Consultant

The process of helping

customers reach their
strategic goals by using Strategic Orchestrator
the products, service,
and expertise of the
selling organization.
Long-term Ally

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 Four Theories of Selling

 AIDAS

 “Right set of circumstances”

 “Buying Formula”

 “Behavioral Equation”

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 AIDAS and “Right Set Of Circumstances” are
seller oriented theories.

 “Buying Formula” theory of selling is Buyer

oriented.

 The “Behavioral Equation” theory

emphasizes the buyer’s decision process but
also takes the salesperson’s influence
process into account.
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 AIDAS theory of selling
 A-Securing attention.

 I-Gaining Interest.

 D-Kindling desire.

 A-Inducing Action.

  S-Building Satisfaction.
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 “Right Set of Circumstances”

 Theory can be summarized as “Every thing

was right”.

 This theory is also known as “Situation-

response” theory.

 A sales person needs to be well skilled to

handle the set of circumstances.

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 BUYING FORMULA
THEORY OF SELLING

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 The name “buying formula” has
been given by the late E.K.
Strong.
 It is a step-by-step explanation of the
buyer’s needs.
 Reduced to its simplest form, the mental
processes involved in a purchase are

need solution purchase

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 After adding the fourth element, it
becomes

Need(or problem) solution purchase

satisfaction

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 After modification in the solution
and satisfaction, the buying
formula becomes

need product and/or service and trade

name purchase
satisfaction/dissatisfaction

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 After adding adequacy and
pleasant
feelings, it becomes
adequacy pleasant
feelings

need product and/or service and trade

name purchase
satisfaction/dissatisfaction

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“Behavioral Equation”
Theory

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 Using a stimulus response model and
incorporating findings from behavioral
research, J.A. Howard explains buying
behavior in terms of the purchasing decision
process, viewed as phases of the learning
process.
Four essential elements of the learning process
included in the stimulus-response model are:
1. DRIVES:
a) INNATE DRIVES
b) LEARNED DRIVES

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2. CUES:
a) PRODUCT CUES
b) INFORMATIONAL CUES

3. RESPONSE

4. REINFORCEMENT

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Howard incorporates these
four elements into an
equation
B =P * D * k * V
Where
B= response or internal response tendency
P= predisposition or the inward response tendency
K= incentive potential
V= intensity of all the cues

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