2 theories of selling

7/31/2019 2 Theories of Selling

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Theories of SellingorSales Presentation Strategies

or

Selling Strategiesor

Selling Methods

by

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The Structure of SalesPresentations

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Classification ofPersonal Selling Approaches

Stimulus Response

Selling Mental States Selling

Need SatisfactionSelling

Problem Solving Selling

Consultative Selling


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Stimulus Response Selling

SalespersonProvidesStimuli

BuyerResponses

Sought

ContinueProcess until

PurchaseDecision


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Stimulus Response Selling5215

The theoretical background for thisapproach originated in earlyexperiments with animal behavior.

The key idea is that various stimuli canelicit predictable responses.

Salespeople furnish the stimuli from a

repertoire of words and actionsdesigned to produce the desiredresponse.


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The salesperson attempts to gain favorableresponses from the customer by providingstimuli, or cues, to influence the buyer. Afterthe customer has been properly conditioned,the salesperson tries to secure a positive


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An example of the stimulus response viewof selling would be continued affirmation,a method in which a series of questions

or statements furnished by thesalesperson is designed to condition theprospective buyer to answering yestime after time, until, it is hoped, he orshe will be inclined to say yes to theentire sales proposition.

This method is often used by

telemarketing personnel, who rely on


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Stimulus response sales strategies,particularly when implemented with a cannedsales presentation, have some advantages forthe seller.

The sales message can be structured in alogical order. Questions and objections fromthe buyer can usually be anticipated and

addressed before they are magnified duringbuyerseller interaction.

Inexperienced salespeople can rely onstimulus response sales methods in some

settings, and this may eventually contribute


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The limitations of stimulus response methods,can be severe, especially if the salesperson isdealing with a professional buyer.

Most buyers like to take an active role in salesdialogue, and the stimulus response approachcalls for the salesperson to dominate the flowof conversation.

The lack of flexibility in this approach is also adisadvantage, as buyer responses andunforeseen interruptions may neutralize ordamage the effectiveness of the stimuli.


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Mental States Selling orFormula Selling

Attention Interest Conviction Desire Action


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Mental States or FormulaSelling

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Mental states selling, or the formula approachto personal selling, assumes that thebuying process for most buyers isessentially identical and that buyers can beled through certain mental states, or steps, inthe buying process.

These mental states are typically referred to

as AIDA (attention, interest, desire, andaction).

Appropriate sales messages provide atransition from one mental state to the next.

Like stimulus response selling, the mental


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The salesperson does most of the talking, asfeedback from the prospect could bedisruptive to the flow of the presentation.

A positive feature of this method is that itforces the salesperson to plan the salespresentation prior to calling on the customer.

It also helps the salesperson recognize that

timing is an important element in thepurchase decision process and that carefullistening is necessary to determine whichstage the buyer is in at any given point.


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A problem with the mental states method isthat it is difficult to determine which state aprospect is in. Sometimes a prospect isspanning two mental states or moving backand forth between two states during the salespresentation.

The salesperson attempts to uncover

customer needs that are related to theproduct or service offering. This mayrequire extensive questioning in theearly stages of the sales process.

After confirming the buyers needs, the


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Need Satisfaction Selling

Uncover andConfirm

Buyer Needs

PresentOffering to

Satisfy Buyer

Needs

ContinueSelling until

Purchase

Decision

The salesperson attempts to uncover customer

needs that are related to the product or serviceoffering. This may require extensivequestioning in the early stages of the salesprocess. After confirming the buyers needs,

the salesperson proceeds with a presentationbased on how the offerin can meet those


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Need Satisfaction Selling162116

Need satisfaction selling is based on thenotion that the customer is buying tosatisfy a particular need or set of needs.

It is the salespersons task to identifythe need to be met, then to help thebuyer meet the need.

Unlike the mental states andstimulus response methods, thismethod focuses on the customer

rather than on the salesperson.


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Need Satisfaction Selling17

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Customer responses dominate the earlyportion of the sales interaction, and only afterrelevant needs have been established doesthe salesperson begin to relate how his or heroffering can satisfy these needs.

Customers seem to appreciate this sellingmethod and are often willing to spend

considerable time in preliminary meetings todefine needs prior to a sales presentation orwritten sales proposal.

Also, this method avoids the defensiveness

that arises in some prospects when a


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Problem Solving Selling

DefineProblem

GenerateAlternativeSolutions

Continue

Sellinguntil

PurchaseDecision

EvaluateAlternativeSolutions

The salesperson defines a customer problemthat may be solved by various alternatives.Then an offering is made that represents atleast one of these alternatives. Allalternatives are carefully evaluated before a


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Problem Solving Selling19

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Problem-solving selling is an extension ofneed satisfaction selling.

It goes beyond identifying needs to

developing alternative solutions for satisfyingthese needs. Sometimes even competitorsofferings are included as alternatives in thepurchase decision.

The problem-solving approach typicallyrequires educating the customer about the fullimpact of the existing problem and clearlycommunicating how the solution delivers

significant customer value.


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To be successful in problem-solutionselling, salespeople must be able to getthe buyer to agree that a problem exists

and that solving it is worth the time andeffort required.

The problem-solving approach to sellingcan take a lot of time. In some cases, theselling company cannot afford this muchtime with each prospective customer. Inother cases, the customers may be

unwilling to spend the time.


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The problem-solving approach appearsto be most successful in technicalindustrial sales situations, in which

the parties involved are usuallyoriented toward scientificreasoning and processes and thus find

this approach to sales amenable.


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Long-term Ally

Consultative Selling

The process of helping

customers reach theirstrategic goals by usingthe products, service,and expertise of theselling organization.

Strategic Orchestrator

Business Consultant


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Consultative Selling23

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Consultative selling is the process of helpingcustomers reach their strategic goals by usingthe products, services, and expertise of thesales organization.

Notice that this method focuses onachieving strategic goals of customers,not just meeting needs or solving

problems. Salespeople confirm their customers strategic

goals, then work collaboratively withcustomers to achieve those goals.

In consultative selling, salespeople fulfill


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As a strategic orchestrator, thesalesperson arranges the use of the salesorganizations resources in an effort to satisfythe customer. This usually calls for involvingother individuals in the sales organization.

For example, the salesperson may needexpert advice from production or logistics

personnel to fully address a customer problemor opportunity.


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In the business consultant role, thesalesperson uses internal and external(outside the sales organization) sources tobecome an expert on the customersbusiness. This role also includes aneducational elementthat is, salespeopleeducate their customers on products theyoffer and how these products compare withcompetitive offerings.

As a long-term ally, the salespersonsupports the customer, even when an

immediate sale is not expected.


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Trust-Based Sales Process26

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Trust-Based Sales Process27

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The three major phases of the sales processare initiating, developing, and enhancingcustomer relationships.

Salespeople must possess certain attributesto earn the trust of their customers and beable to adapt their selling strategies todifferent situations.

Throughout the sales process, salespeopleshould focus on customer value, first byunderstanding what it is, then by working withcustomers to create value, communicate

value, and continually increase customer

Basics of Sales Management


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Copyright 2010, S L Gupta

Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta2-28

Personal Selling


Ch-2

Block:

I

Cont.

Various Selling theories

SELL Model

This is a simple model describing the various actions associated with the word

itself.

1. Show features:it is the very first stage; expected to show the features of theproduct, demonstrating how it works, and showing the results of using the

product immediately.

2. Explain advantage:Immediately, after demonstrating the product, explain

the advantage possibly related with the features, showing the advantages

which ate derived from it.

3. Lead into benefits: Correlate the advantages with the benefits. This is

simply highlighting the materialization of those benefits in conducting the set of

activities due to having/using the product.

4. Let them talk:Then at the end, let them talk further about the product, its


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McGraw-Hill Companies,Irwin/McGraw-

The SELL Sequence

3-3

S E L LShow Explain Lead Letfeature advantage into benefit customer talk



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Excel BooksSales and Distribution Management Text & Cases (2nd Edition) S L Gupta2-30

Personal Selling


Ch-2

Block:

I

Cont.

SLAID Model

This is another simple model describing the various actions associated with the

word itself, Slaid acronym for sales steps.

1. Show the product:Showing the product in full or showing specific functionis also possible in the beginning, just to trigger the anxiety or curiosity in their

mind. It is not a full product demonstration. Demonstration comes a bit latter state

in this methods.

2. Listen: A partial demonstration flash triggers a lot of questions, or

estimations or expectations, in case if the product is absolutely new concept.

3. Acknowledge:Your hearing will endorse that you have understood and are

ready to fulfill their needs. You may be given elaborative further deep



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Personal Selling


Ch-2

Block:

I

Cont.

4. Identify:Identify the objections, and bring them on a squaring off situation

with contents offered by your product. If possible, set up a concession clause,

balancing the benefits of new product over the old objections, so that you can

handle the objection and will get the sale.

5. Deliver: Ask the participants to repeat the demonstration to build the

confidence about the product performance.

2 theories of selling

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