It is a selling technique by which a salesperson uses his or her interpersonal skills, attitude and specialist product knowledge to persuade a customer in buying a particular product or at least trial the product. Brochures and other visual aids serve the same purpose. Each step of the process has sales-related issues, skills, and training needs, as well as marketing solutions to improve each discrete step. If you want to add personal links, please do that on your user page (you can also write your profile there). When we look at the le… Plagiarism Prevention 4. Your email address will not be published. Insurance companies sell their retir… Selling is a wide subject, covering many selling methods, sales theories, models and sales training methods. The salesperson should very carefully handle this stage and try to close the deal effectively. The idea behind personal selling is that the salesperson should be aware of the need to divide his time judiciously between existing and potential customers depending upon the type of industry and the state of business in the industry. The salesperson has to convince the prospect for participating in the face-to-face interview. Personal selling to consumers takes place through retail and direct-to-consumer channels. It includes various points such as:-1.Face to Face Interaction-This is the first features of personal selling and it means that there is face to face interaction between buyers and sellers. Image Guidelines 5. The origins of the word 'sell' provide a useful reminder of its purest meaning. The rep asks questions, listens to buyer concerns and … Privacy. The objective is to put the prospect into the right state of mind to continue the sales talk. This theory, popularly known as AIDAS theory (attention, interest, desire, action and satisfaction), is based on experimental knowledge. the act of purchasing a brand or a particular supplier. It is the energy that pushes us to work hard to accomplish the goals, even if … Drive is a strong internal stimuli that impel buyers’ response. – Discussed. To achieve this, the salesperson has to be enthusiastic about the product. Description: Personal selling is a face-to-face selling technique by which a salesperson uses his or her interpersonal skills to persuade a customer in buying a particular product. Personal Selling :- Also known as face-to-face selling. It comprises – prospecting, pre approach, presentation, handling of the objection, closing and follow up. Personal Selling: People Power. The buyer’s needs or problems receive major attention, and the salesperson’s role is to help the buyer to find solutions. Product-Oriented Selling Theory. Discuss in detail the theories of selling with its uses in personal selling. This theory is very common. Throughout the interest phase, the hope is to search out the selling appeal that is most likely to be effective. In present times, it is becoming more and more customer-oriented because no more do are have a buyer’s market. Neither they know about the benefits or impact which the new products or technology can create for the prospects. The customer should be left with the impression that the salesperson merely helped in deciding. “Right set of circumstances” Theory of Selling: It is also called the “situation-response” theory. This theory, sometimes called the “situation-response” theory. Related Questions. The name “buying formula” was given to this theory by strong. In purchasing, the “solution” involves two parts: 2. These theories tend to concentrate on how consumers spend money, what causes them to spend more money, and how the spending of consumer money should impact the planning and strategies practiced by businesses. The Personality refers to the distinct traits, thoughts, feelings, actions and characteristics of an individual that differentiates him from other individuals. Ads touch our values, emotions, and the underlying beliefs. Several theories are given in selling and it is claimed that the salesman must select from one of them. The 4 types of selling. “Buying Formula” theory of selling. As a result, different theories have been proposed. As interest in the psychology of leadership has increased over the last 100 years, a number of different leadership theories have been introduced to explain exactly how and why certain people become great leaders. Cues are weak stimuli that determine when the buyer will respond. The salesperson tries to highlight various features of the product to convince the customer that it will only add value. After the attention getting and creating interest, the prospect must be kindled to develop a strong desire for the product. The personal selling process is a 7 step approach: prospecting, pre-approach, approach, presentation, meeting objections, closing the sale, and follow-up. What exactly makes a great leader? Role of personal selling as a tool of direct marketing:-There are a large number of definitions of personal selling in literature. The solution will always be a product or service or both and they may belong to a producer or seller. This is a ready-to-buy point. AIDAS theory of personal selling. Howard believed that selling effort and buying action variables are multiplicative rather than additive. People Are Selling Dirt, Rag , Clothes Whatever They Got and That’s how You need to be in a Different Pack; Don’t Follow Sales Structure - Just Follow The “Value Structure” Sell Solution Not Fear; Choose Clients Wisely; Use the Same Product Before Selling It; If You’re Not Sure about any Product or Services - Simply Don’t Sell It Theories of Motivation Definition: There are several Theories of Motivation that are developed to explain the concept of “Motivation”. One such theory is the “Need Satisfaction” theory. V = Intensity of all cues: triggering, product or informational. The lowest rung of selling is transaction selling (trust us when we say it is barely selling). It has its psychological origin in experiments with animals. The theories of personality have been grouped as:Psychoanalytic Theory, Socio-Psychological Theory, Trait Theory and Self Theory. This type of communication is carried out by sales representatives, who are the personal connection between a buyer and a company or a company’s products or services. Example: 1. Content Filtrations 6. The GE Matrix The Marketing Environment . A good beginning of conversation may set the stage for a full sales presentation. Nothing wrong with Mr. Berstein's answer but to be more explicit. Time is saved and the chances of making a sale improved if objections are anticipated and answered before the prospect raises them. In this theory, it is assumed that the prospect or buyer has no idea about the new product and scientific or technological advancement. Consumer behavior theories are used by businesses in order to optimize their selling and marketing strategies. Disclaimer 9. 1. This theory explains buying behaviour in terms of purchasing decision process, viewed as a phase of the learning process, four essential elements of learning processes included in the stimulus response model are drive, cues, response and reinforcement, which are given below, in brief: 1. Transactional selling is exactly what the name outlines. There has been a lot of research by behavioural scientists and marketing scholars to examine whether selling is an art or science and various theories have been developed to explain the buyer-seller buying process. This action initiates the curiosity to know more about the product in customer’s mind. The buyer develops interest in buying a solution. Evolution of Personal Selling As we begin the 21 st century, selling continues to develop, becoming more professional and more relational Industrial Revolution Post-Industrial Revolution War and Depression Modern Era 1800s 1900s 2000s Selling function became more structured Peddlers selling … But he should be flexible because a formula will become irrelevant when the state of business changes. Personal selling is more of an art. 2. The fourth one emphasizes the buyer’s decision process but also takes the sales­person’s influence process into account. Prohibited Content 3. This theory purports to answer the question: What thinking process goes on in the prospects’s mind that causes the decision to buy or not to buy? Once the buyer has asked the seller to pack the product, then it is the responsibility of the seller to reassure the customer that the decision was correct. If you have a link with great content related to this wiki, you can add it at Selling Theories (links) The first two of the four above-mentioned theories, are seller oriented and the third one is buyer’s oriented. Personal selling happens when companies and business firms send out their salesmen to use the sale force and sell the products and services by meeting the consumer face – to – face. THEORIES OF SELLING Old Approach Generally the selling theories emphasized ‘What to do’ and ‘How to do’ rather than ‘Why to do’. This ensure the purchase. The salesperson should sense the prospect’s mind and brief his talks. K = “Incentive potential” that is, the value of product or brand or its perceived potential value to the buyer. Report a Violation, Personal Selling and Advertising (12 Differences). So instead of taking a megaphone to share features far and wide, you take a step back and turn your head to listen. Stakeholder Map . Privacy Policy 8. Some of these theories of selling include, AIDAS, the right situation theory and the buying formula, to name a few. The first two of the four above-mentioned theories, are seller oriented and the third one is buyer’s oriented. There has been a lot of research by behavioural scientists regarding selling as an art or a science. 4. Do certain personality traitsmake people better suited to leadership roles, or do characteristics of the situation make it more likely that certain people will take charge? Please see our Marketing Theories - SWOT Analysis post for a full explanation. Personal selling uses in-person interaction to sell products and services. The set of circumstances can be both internal and external to the prospect. Selling is a key element of a company's promotional mix. AIDAS theory of personal selling Securing Attention Gaining Interest Kindling Desire Inducing Action Building Satisfaction “Right Set Of Circumstances” Theory Of Selling “Everything was right for that sale” sums up this theory. 3. Happily much sales development theory takes this positive direction. According to this theory potential buyer’s mind passes through the following stages: It is the crucial step in the AIDAS process. The process of influencing others to buy may be viewed from four different angles on the basis of different theories: thus there are four theories of selling viz. The passion you carry for what you do and what you are selling is a selling point in itself. Advertisements carry a strong message with a meaning instilled in them. The second step is to intensify the prospect’s attention so that it involves into strong interest. Market segmentation theory contends that there are different groups of people with different purchasing habits. Advertisements are organised magic’s that hide the real intention of the selling house, which is to sell a product to make profits. Related Terms Odd Lot Theory Definition The odd lot theory is a technical analysis theory based on the assumption that the small individual investor trading odd lots is usually wrong. The consumer decision making process Porters Five Forces . There are at least 4: 1. Copyright 10. Very often there may be some hesitation on the part of the prospect at this stage. The motivation is a drive that forces an individual to work in a certain way. Is Salesmanship a Science or an Art? Personal selling is a goal-directed activity, therefore, the chances of wastage of efforts are minimum in personal selling in comparison to advertising. A reinforcement is any event that strengthens the buyers’ tendency to make a particular response. The major emphasis of the theory is that a particular circumstance prevailing in a given selling situation will cause the prospect to respond in a predictable way. The seller tries to understand the needs of the buyers and provide the product matching the customer needs. Innate drives stem from psychological needs and learned drives such as striving for status or social approval. Often effective salespersons have an instinct. Selling is a wonderful profession when approached ethically, constructively and helpfully. The features of personal selling define the particular characteristics which are related to personal selling. Theories of Selling. | Certified Educator The four main personality theories are the following: Psychoanalytic, trait, humanistic, and social-cognitive. This is used when objectives are set to evaluate the Strengths, Weaknesses, Opportunities and Threats facing the organisation. 2. Various theories of selling have been developed overtime. What is the simplest personal selling theory? If the presentation has been perfect, the prospect is ready to act, that is, to buy. TOS 7. AIDAS theory of personal selling 2. “Behavioral Equation” theory. Objection from the prospect will have to be carefully handled at this stage. Triggering cues activate the decision process whereas new triggering cues influence the decision process. The brand name, manufacturer or the salesperson of the particular brand name: The product or service (Brand name) must be considered adequate to satisfy the need and the buyer must experience a pleasant feeling or anticipated satisfaction. This theory is a sophisticated version of the “right set of circumstances” and this theory was proposed by Howard, using a stimulus response model and using large number of findings from behavioural research. Sellers humanize themselves and show they’re there to help prospects, not sell at them. Theory of Personal selling – List. “Right Set of Circumstances” theory of selling 3. This is essentially a seller-oriented theory and it stresses that the salesman must control the situation in such a way as to produce a sale ultimately. Here the idea is that the product is supplying a need of the customer and selling points must be selected by the salesman in terms of the need to be satisfied. “Right Set of Circumstances” theory of selling. Presentation and Demonstration-In the very first stage of Personal selling, a salesperson represents himself on the behalf of his company and tells about his product and service for which he is available there and tries to attract his customer by telling features of his item during demonstration. After the sale has been made, the salesperson should ensure that the customer is satisfied with the product. “Buying Formula” theory of selling 4. It is one-on-one interaction between a salesperson and a prospect. Therefore, Howard incorporated these four elements into a behavioural equation that is: P = Response or internal response tendency, i.e. The theories are based upon the practical and experimental knowledge accumulated from the years of “ living in the market”, rather than on …