This presentation deals with various theories of sales like AIDAS theory, Right set of circumstances theory, buying formula theory, behavioural equation theory. It also discusses the SPIN model of selling and details the Situation, Problem, Implication and Need Pay-off questions at the heart of SPIN Model. This presentation is useful for practicing professionals, professors and students teaching and studying undergraduate and post graduate courses in marketing and sales & distribution management of GGSIP University, University of Delhi and other universities

1. Models and Theories of Selling
Presented by:
JATIN VAID

2. 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?
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3. Types of Selling Theories
1. AIDAS Theory
2. “Right Set of Circumstances” Theory
3. “Buying Formula” Theory
4. “Behavioral Equation” Theory
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4. 1. AIDAS Theory
 Buyers’ mind passes through 5 stages consciously –
Attention, Interest, Desire, Action, Satisfaction
i. Securing Attention: Good rapport, conversation openers,
first impression, attire, smile, social skills
ii. Gaining Interest: Visual aids, effective selling appeal,
asking questions, brochures, handing over product to
customer
iii. Kindling Desire: Ready to buy point, Handling objections,
summarizing, focus
iv. Inducing actions: Sense timing for trial close, asking for
orders, reassuring
v. Building Satisfaction: Thank customer, reassuring
decision, written order, following up promises made
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5. 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
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6. 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
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7. Buying formula
Need
Product
(And / Or)
Brand Name
Purchase Satisfaction
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8. 4. “Behavioral Equation” Theory
 J.A Howard
 Explains buying behavior in terms of purchasing
decision process as a learning process
Elements:
i. Drive: Strong internal stimuli (Innate or learned)
ii. Cues: Weak stimuli that determines when buyer
will buy (Price, advertisement)
iii. Response: What buyer does
iv. Reinforcement: An event that strengthens the
buyer’s tendency to respond
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9. Behavioral equation
B = P X D X K X V
Where,
B: Buying
P: Predisposition
D: Drive level
K: Incentive potential
V: Intensity of all cues
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10. SPIN Model of Selling
By, Neil Rackham (1988)
Underlying assumptions:
i. Relationship selling is customer centric
ii. Selling process adapted to customers to
deliver personal solutions
iii. Ask relevant questions
iv. Four kinds of questions: Situation, Problem,
Implication, Need-payoff (SPIN)
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11. 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
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12. 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
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13. ii. Problem Questions
 Helps customers recognize their needs &
paves way to propose a solution
 Helps better understanding of customer’s
problem
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14. 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
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15. 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
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16. Thank You!
jatinvaid@gmail.com