MARKETING MANAGEMENT - PROMOTION DECISION
THEORIES OF SELLING - Sales Force Decision
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Generally the selling theories emphasized ‘What to do’ and ‘How to do’ rather than ‘Why to do’.
THEORIES OF SELLING
Generally the selling theories emphasized ‘What to do’ and ‘How to do’ rather than ‘Why to do’. The theories are based upon the practical and experimental knowledge accumulated from the years of “ living in the market”, rather than on a systematic, fundamental body of knowledge. The second or the new approach made use of the findings of the behavioural sciences. Theories according to the new approach :
1. AIDAS theory of selling – seller oriented
2. ‘Right set of the circumstances’ Theory of Selling – Seller – oriented.
3. ‘Buying Formula’ Theory of Selling – Buyer -oriented
4. ‘Behavioural Equation’ theory – Buyers’ decision process.
AIDAS Theory of Selling : In this theory AIDAS stands for
A - Attention I - Interest D - Desire A - Action
S -
Satisfaction
This theory tells about the consumer readiness stage. It is a psychological theory of selling which tells us about the consumer mind – the stages through which the mind passes. These stages are attention, interest, desire, action and satisfaction. This theory tells about the fact that the salesman should make the consumer pass through these five stages so that the purchase should occur.
1. Get the appointment with the consumer
2. Salesperson must show mental alertness and be a skilled conversationalist.
3. He should establish a good rapport at once and should be a conversation opener.
4. He should
do his homework properly.
5. Good conversation opener causes the prospect to relax and sets stage for the overall presentation.
This deals with the evolvement of the strong interest of the consumer in the product, to develop a contagious enthusiasm for the product and to give facts and figures about the product. There should be a strong selling appeal to make their interest in the product. There should be a strong selling appeal to make their interest in the product very effective. Also the attitudes and the feelings toward the product should be clarified. Sales – person must take all these into account in selecting the appeal to be emphasized.
Here the interest of the consumer is to be converted into the desire for buying the product. The ways should be found to face and dispose of the sales obstacles, the consumer objections, external interruptions, digressive remarks, etc. The consumer should be satisfied in all respects and all of his doubts should be cleared.
The perfect presentation results in the readiness of the consumer to buy the product. All this requires experience of the sales personnel as the buying is not automatic and it should not be closed until the sales persons are positive that the right time has come. Most prospects find it easier to shy away from the hints than from frank requests for an order.
After the purchase generally the customer passes through the state of mental cognitive dissonance in post – purchase anxiety. Now this is the job of the sales person to relieve him of this tension and convince him that him decision was correct. Building satisfaction means thanking the customer for the order and also to make the customer feel delighted and also to assure him of the promises made by the salesman.‘Right set of circumstances’ Theory of Selling : This theory is the ‘situation response’ theory which tells that everything was right for the sale. It also states that the skills of the sales persons have a lot of effect on the sales to take place. Also, if the sales persons have a lot of effect on the sales to take place. Also, if the sales person presents the proper stimuli or appeals, the desired response will result. This theory tells about two types of factors which constitute the set of circumstances. The factors are internal and external. This theory stresses the external factors at the expenses of the internal factors. This is a seller – oriented theory and stresses the importance of the sales persons in the process of selling of a product. The major drawbacks of this theory are : 1. It does not take care of the internal factors. 2. It fails to attach appropriate weight to the response side of the situation – response interaction.
This theory is buyer –oriented theory. This is a psychological theory and takes care of the buyer – related problems and revolves round the buyer. This theory explains the cognition process which goes on in the mind of the buyer when he has to take the decision regarding to buy or not to buy. This theory has come through various stages of its development and thus has taken its present picture. When a buying habit is being established, the buyer must know why the product or service is an adequate solution to the need or problem, and why the trade name is the best one to buy.
This theory tells that :
1.The need should be created/ Emphasized.
2.The relation between the need and the product or service should be emphasised.
3.The
brand image should be created.
4. The need, product/ service and the trade name / brand image should be associated with each other.
5. The brand loyalty and the customer delight should be emphasized.
This theory takes care of the buyer’s decision making process and goes in the detail of the process at the micro / internal level. The buyer goes through various stages of learning process. The essential elements of the learning process are :
1. Drive ( Motivation )
2. Cue
3. Response
4. Reinforcement
Drives are strong internal stimuli which impel the buyers’ response. These drives are of two types. They are 1. Innate drives – psychological or biogenic drives and 2. Learned drives – social drives. Cues are the weak stimuli that determine when the buyer will respond. There are 2 types of cues :
1. Triggering
cues – activate the decision process.
2. No triggering cues- influence but does not activate the decision process.
Old Approach
Generally the selling theories emphasized ‘What to do’ and ‘How to do’ rather than ‘Why to do’. The theories are based upon the practical and experimental knowledge accumulated from the years of “ living in the market”, rather than on a systematic, fundamental body of knowledge. The second or the new approach made use of the findings of the behavioural sciences. Theories according to the new approach :
1. AIDAS theory of selling – seller oriented
2. ‘Right set of the circumstances’ Theory of Selling – Seller – oriented.
3. ‘Buying Formula’ Theory of Selling – Buyer -oriented
4. ‘Behavioural Equation’ theory – Buyers’ decision process.
AIDAS Theory of Selling : In this theory AIDAS stands for
A - Attention I - Interest D - Desire A - Action
This theory tells about the consumer readiness stage. It is a psychological theory of selling which tells us about the consumer mind – the stages through which the mind passes. These stages are attention, interest, desire, action and satisfaction. This theory tells about the fact that the salesman should make the consumer pass through these five stages so that the purchase should occur.
Phase – I – Securing Attention
1. Get the appointment with the consumer
2. Salesperson must show mental alertness and be a skilled conversationalist.
3. He should establish a good rapport at once and should be a conversation opener.
5. Good conversation opener causes the prospect to relax and sets stage for the overall presentation.
Phase –II – Gaining Interest
This deals with the evolvement of the strong interest of the consumer in the product, to develop a contagious enthusiasm for the product and to give facts and figures about the product. There should be a strong selling appeal to make their interest in the product. There should be a strong selling appeal to make their interest in the product very effective. Also the attitudes and the feelings toward the product should be clarified. Sales – person must take all these into account in selecting the appeal to be emphasized.
Phase III –Kindling Desire
Here the interest of the consumer is to be converted into the desire for buying the product. The ways should be found to face and dispose of the sales obstacles, the consumer objections, external interruptions, digressive remarks, etc. The consumer should be satisfied in all respects and all of his doubts should be cleared.
Phase IV – Inducting Action
The perfect presentation results in the readiness of the consumer to buy the product. All this requires experience of the sales personnel as the buying is not automatic and it should not be closed until the sales persons are positive that the right time has come. Most prospects find it easier to shy away from the hints than from frank requests for an order.
Phase V – Building Satisfaction
After the purchase generally the customer passes through the state of mental cognitive dissonance in post – purchase anxiety. Now this is the job of the sales person to relieve him of this tension and convince him that him decision was correct. Building satisfaction means thanking the customer for the order and also to make the customer feel delighted and also to assure him of the promises made by the salesman.‘Right set of circumstances’ Theory of Selling : This theory is the ‘situation response’ theory which tells that everything was right for the sale. It also states that the skills of the sales persons have a lot of effect on the sales to take place. Also, if the sales persons have a lot of effect on the sales to take place. Also, if the sales person presents the proper stimuli or appeals, the desired response will result. This theory tells about two types of factors which constitute the set of circumstances. The factors are internal and external. This theory stresses the external factors at the expenses of the internal factors. This is a seller – oriented theory and stresses the importance of the sales persons in the process of selling of a product. The major drawbacks of this theory are : 1. It does not take care of the internal factors. 2. It fails to attach appropriate weight to the response side of the situation – response interaction.
‘Buying Formula’ Theory of Selling
This theory is buyer –oriented theory. This is a psychological theory and takes care of the buyer – related problems and revolves round the buyer. This theory explains the cognition process which goes on in the mind of the buyer when he has to take the decision regarding to buy or not to buy. This theory has come through various stages of its development and thus has taken its present picture. When a buying habit is being established, the buyer must know why the product or service is an adequate solution to the need or problem, and why the trade name is the best one to buy.
This theory tells that :
1.The need should be created/ Emphasized.
2.The relation between the need and the product or service should be emphasised.
4. The need, product/ service and the trade name / brand image should be associated with each other.
5. The brand loyalty and the customer delight should be emphasized.
‘Behavioural Equation’ Theory
This theory takes care of the buyer’s decision making process and goes in the detail of the process at the micro / internal level. The buyer goes through various stages of learning process. The essential elements of the learning process are :
1. Drive ( Motivation )
2. Cue
3. Response
4. Reinforcement
Drives are strong internal stimuli which impel the buyers’ response. These drives are of two types. They are 1. Innate drives – psychological or biogenic drives and 2. Learned drives – social drives. Cues are the weak stimuli that determine when the buyer will respond. There are 2 types of cues :
2. No triggering cues- influence but does not activate the decision process.
Response is what the buyer does.
Reinforcement strengthens the buyer’s tendencies to make a particular response.
Hence this theory takes care of the behavioral aspects of the buyer and how it influences his decisions and his learning process. This also tells about the sales person’s role in all this to make it happen and at the same time it reduces buyer dissonance.
Reinforcement strengthens the buyer’s tendencies to make a particular response.
Hence this theory takes care of the behavioral aspects of the buyer and how it influences his decisions and his learning process. This also tells about the sales person’s role in all this to make it happen and at the same time it reduces buyer dissonance.
Tags : MARKETING MANAGEMENT - PROMOTION DECISION
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