Theories of Selling

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Sales Tips
Understanding customer need
&
problem can drive sales

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Buyer Seller Dyads

Dyad : situation in which two people interacts
Ex :- Sales person- Prospect
Franklin Evans Dyads in Insurance
Sellers and buyers similar outlook can result in sales
Buyers initial conditioning with sales can influence sales.
Sales process is influenced by personality and roles.

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Two approaches Sales theories

1. Based on experiences of sales people and advertising people

( to a certain extent)

2. Based on behavioral theory

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Theories
Seller Oriented
Theories

AIDAS

Buyer oriented
Theories

Buying formulae

Right Set of
circumstances theory

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Sales person
influence and
buyers decision
process
Behavioral equation
theory

1. Attention

1. AIDAS

2. Interest
3. Desire
4. Actions : Buying must be induced.
5. Satisfaction : Assure that it builds satisfaction.

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2. Right Set of Circumstances

It is called situation- response theory .
Particular Circumstances can make the prospect respond in
a predictable way .
Circumstances can be external or internal.

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3. Buying formula theory

Buyers needs or problems are important and sales persons
role is to help the buyer to find solutions.
Need

Solution

Buyer

Satisfaction.
Need to emphasize on need, product \solution.

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Purchase

Adding adequacy and pleasant feelings

adequacy

Need

Product service\trade name

Purchase

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Satisfaction

pleasant feelings

Buyer

4. Behavioral equation theory

J.A Howard used stimulus response model and findings
from behavioral research.
4 essential elements of sales process.
A) Drive b) Cues c) Response d) Reinforcement

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 Drives ( strong Internal stimuli) Innate and Learned

drives
Cues Weak stimuli
Two type of Cues- Product and Informational cues
Response and Reinforcement.

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Howards equation
B= P*D*K*V
B= Response
P=Inward response tendency
D= Present drive level
K= Present satisfaction V= Intensity of all cues.

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Types of Selling Models

1. Standardized Model : Projecting the product features in
relation with customer benefit.
Ex: User friendly, productivity improvement, safety aspects
etc.
Presentation is structured and called canned presentation.

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Continued
2. Need- Satisfaction models : Sales person having a basic
understanding of customer problems and conveys the value
his or her company offers. The sales mans goals :a) Identifying the prospect b) Provide the benefit to change
c) enhance customer confidence d) value promised should be
delivered.

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Continued

3. Problem solution model : Problem solution model similar to

NS model but formal study of customer problem is done.
Ex :- Telecommunication, Computer and Information systems
etc. ( Mostly in B2B context).

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Comparing SM and PS
SM
a) All prospects buy.

PS
a) Few will buy

b) Customer has reasonable

b) Customer requires guidance

understanding
c) Accept it when you can

c) Reject when you cannot

improve customer need.

provide customer need.

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Discussion
Sales person role in reducing buyer
Dissonance/ skepticism

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