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Sales Management 1 (Rohit)

The document discusses four theories of sales management: 1. AIDAS theory which focuses on attracting attention, gaining interest, creating desire, and inducing action in customers. 2. Right set of circumstances theory which emphasizes creating the right situation to get a customer's attention and interest so that a sale results. 3. Buying-formula theory which is buyer-oriented and focuses on understanding customer needs and helping customers find solutions. 4. Behavioral equation theory which views the purchasing decision process as phases of learning involving drives, cues, responses, and reinforcement.

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Rohit Yadav
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258 views13 pages

Sales Management 1 (Rohit)

The document discusses four theories of sales management: 1. AIDAS theory which focuses on attracting attention, gaining interest, creating desire, and inducing action in customers. 2. Right set of circumstances theory which emphasizes creating the right situation to get a customer's attention and interest so that a sale results. 3. Buying-formula theory which is buyer-oriented and focuses on understanding customer needs and helping customers find solutions. 4. Behavioral equation theory which views the purchasing decision process as phases of learning involving drives, cues, responses, and reinforcement.

Uploaded by

Rohit Yadav
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Theories of Sales

Management

Rohit Yadav
Theories of Sales Management
Theories of selling emphasizes on “what to do” and “how
to do” rather than “why”.

There are four theories of selling such as:

1. AIDAS theory
2. Right set of circumstances theory
3. Buying-formula theory
4. Behavioural equation theory
The seller has to accomplish the presentation task in the
following sequence according to the theory.

1. Securing attention:- The main aim is to put the


prospect in the receptive state of mind so that prospect
pay attention to the presentation.
2. Gaining Interest :- The second goal is to intensify the
prospects attention so that it evolves into strong
interest.
3. Kindling Desire :- The third goal is to Kindle the
prospect’s desire to the ready- to- buy point.
4. Inducing Action :- The presentation may arouse strong
desire in the buyer's mind to buy but the sales person must
induce the prospect to act- that the prospect to buy as
buying is not automatic.

5. Building Satisfaction:- After the customer has given the


order, the sales person should reassure the customer that
the decision was correct.
Right set circumstances theory
This theory sometimes called “Situation-Response” theory
and it emphasizes on creating a right circumstance or
situation by the sales person so that he succeeds in
securing the attention and gaining the interest of the
prospect, and if the sales person response (that is the sale)
will result.
Buying-formula theory
This is a buyer oriented theory and it emphasizes on the
buyer's side of the buyer-seller dyad. The buyer's needs or
the problems receive major attention, and the sales
person’s role is to help the buyer to find solutions.
Adequacy Adequacy

Need or Product/ service Trade Name Purchase Satisfaction


Problem

Pleasant Feeling Pleasant Feeling


Behavioural equation theory
J.A Howard explains buying behaviour 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 drive, cue, response and reinforcement , described
as follows :

1. Drives : are the strong stimuli response that impels the buyers
response and are of two kinds.
a. Innate drives: stem from the physiological needs, such as hunger,
thirst , pain, cold etc.
b. Learned drives : such as striving for status or social approval.
2. Cues : are weak stimuli that determines when the buyer will respond.

a) Triggering cues :- activate the decision process for any given


purchase.
b) Non triggering cues :- influence the decision process but do not
activate it, and may operate at any time even though the buyer is not
contemplating a purchase.

Non triggering cues are two kinds:

● Product cues : are external stimuli received from the product directly
● Informational cues : are external stimuli that provide information of
a symbolic nature about the product. Such stimuli may come from
advertising , conversation with other people and so on.
c) specific product information cues may also function as triggering
cues. This may happen when price triggers the buyer's decision.

3. Response:- is what buyer does.

4. A reinforcement is any event that strengthens the buyer's


tendency to arrive at a particular response.

Howard incorporated these four elements into an equation:

B = P × D× K × V

where B = Response of the buyer

P= predisposition or force of habit


D= Drive level of the buyer or motivation to buy.

K= “ Incentive Potential “ that is the value of the product or its potential


satisfaction to the buyer.

V= Intensity of all cues: triggering ,product or informational

The relation among the variable is multiplicative. Thus, if any independent


variable has a zero value , B will also be zero and there is no response . No
matter how much P is there may be, if the individual is unmotivated (D=0) ,
there is no response.

When K value is more , P increases in value , means when satisfaction is


more the reinforcement occurs and the tendency to make response in future
increases and as a result the buyer will buy the product next time the cue
appears.
Thank You….

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