theories and models of selling
TRANSCRIPT
Models and Theories of Selling
Presented by:JATIN VAID
Selling theories
Is selling a science, taught through concepts or an art, learned through experience
Experience psychology V/S Behavioral science Explain the ‘Buyer – Seller’ process Seller orientation or Buyer orientation or
Both?
Types of Selling Theories
1. AIDAS Theory
2. “Right Set of Circumstances” Theory
3. “Buying Formula” Theory
4. “Behavioral Equation” Theory
1. AIDAS Theory Buyers’ mind passes through 5 stages consciously – Attention,
Interest, Desire, Action, Satisfactioni. Securing Attention: Good rapport, conversation openers, first
impression, attire, smile, social skillsii. Gaining Interest: Visual aids, effective selling appeal, asking
questions, brochures, handing over product to customeriii. Kindling Desire: Ready to buy point, Handling objections,
summarizing, focusiv. Inducing actions: Sense timing for trial close, asking for orders,
reassuringv. Building Satisfaction: Thank customer, reassuring decision,
written order, following up promises made
2. “Right Set of Circumstances” Theory
Also called, ‘Situation – Response’ Theory Particular circumstances prevailing in a given selling
situation will cause the prospect to respond in a particular way
External & internal stimuli Fails to assign importance to external factors (response) Salesperson should control the situation to sell
effectively Difficult to apply
3. “Buying Formula” Theory
Emphasizes the buyer’s perspective (thought process) to buy or not to buy
Buyer’s needs receive major attention & seller’s role is to help buyer find solution.
Buying formula is based on a theory by E.K Strong and arranges responses in a psychological sequence
4. “Behavioral Equation” Theory J.A Howard Explains buying behavior in terms of purchasing decision
process as a learning processElements: i. Drive: Strong internal stimuli (Innate or learned)ii. Cues: Weak stimuli that determines when buyer will
buy (Price, advertisement)iii. Response: What buyer doesiv. Reinforcement: An event that strengthens the buyer’s
tendency to respond
Behavioral equation
B = P X D X K X VWhere, B: BuyingP: PredispositionD: Drive levelK: Incentive potentialV: Intensity of all cues
SPIN Model of Selling
By, Neil Rackham (1988)Underlying assumptions: i. Relationship selling is customer centricii. Selling process adapted to customers to
deliver personal solutionsiii. Ask relevant questionsiv. Four kinds of questions: Situation, Problem,
Implication, Need-payoff (SPIN)
Steps of SPIN Selling
1. Opening: Builds rapport & establish a buyer – centered purpose for sale call
2. Investigation: Heart of SPIN Model – to ask relevant questions to uncover buyer’s needs (Situation, Problem, Implication & Need – payoff)
3. Demonstrating capability: Explain the benefits of solution and show how the product meets the prospect’s needs
4. Obtaining commitment: To make the prospect agree to advance the sale or make a purchase
i. Situation Questions
Straightforward facts about the buyer’s existing situation & provide a starting place for understanding buyer’s needs
To be asked sparingly to avoid monotony Based on careful research about customer
ii. Problem Questions
Helps customers recognize their needs & paves way to propose a solution
Helps better understanding of customer’s problem
iii. Implication Questions
Increase a prospect’s motivation to seek change.
Uncover the causes of the problem & its long term consequences
Effective when prospect is the decision maker
iv. Need-payoff Questions
Helps customers to discover a way out by asking how their problem could be resolved
Right ‘Need-payoff’ questions can tell seller how his solutions can help the customer
Highly convincing
