selling function

1. pure transaction

Since time began. Pure transaction is effectively one step removed from stone-age barter. Basic selling. Standard commoditised products, price and reliability - there is little to build on, business may be spasmodic, hand-to-mouth and unpredictable. There is no relationship other than the transaction.
2. relationship and trust

Since the beginning of selling as a profession, popularised by Dale Carnegie, among others, early-mid 1900s Continuity, consistency, sustainability, and some understanding of the customer's real issues are seen to have a value by both selling and buying organization. Intangibles such as continuity on communications and contacts, matched styles of trading, mutual flexibility and adaptability, are regarded as relevant benefits by the customer, which can justify a price premium, and therefore offer protection against 'cheaper' competitors, and build loyalty to supplier.
3. management and information

Operated instinctively in isolated examples in business relationships for centuries, but not generally seen in selling methodology, sales training and strategic application until the 1960s-1970s. The provision of management and information support by seller to buying organization, and the exchange and cooperation in these areas represent a significant increase in depth and effectiveness of selling reletionships. A longer-term supply arrangement - a requirement for and outcome of this level of selling - is seen as an advantage by seller and buyer, because it brings extra intangible benefits of co-operation and support other areas of the customer's business, eg., training, technology, product development - which improve the customer's own competitive strengths and operating efficiencies. The supplier is seen as part of the team, and is likely to be more involved in some of the the customer's own internal systems, meetings, planning, etc.
4. partnership

A sophisticated open approach to selling which mainly first developed in the 1980s, probably in response to the increasing complexity of business relationships, technology, global markets, etc., and the increasingly fast pace of change. Organizations could be more effective and adaptable by devolving operating responsibilities to suppliers. Very different to merely buying and selling products and services. The activities of the buying and selling organization become almost seamless wherever they are connected; the supplier is virtually part of the customer's organization and treated as such. 'Out-sourcing' generally requires this degree of collaboration, which involves a level anticipation, innovation and integrated support that is very difficult to un-pick, even if it were in the customer's interests to do so. Partnership level selling is not a legal or contractual arrangement; it describes the relationship, which operates virtually as a formal partnership would do. There is typically an enormous depth of understanding and cooperation which is not written down or detailed in a contract. Partnership selling relationships generally need time to develop - probably between 1-3 years depending on the size and complexity of the seller and buyer organizations.
5. education and enablement

2000 and beyond. The dimensions, scope and impact of this new type of selling are not yet fully developed and defined.

There are signs however that the sellers who can give most to their customers - especially in areas that the customers didn't even know they had a need or an opportunity - will be the most successful. The educational and 'giving' activities of the selling organization extend the aspects of anticipation and information found in the partnership level. Also incorporated are aspects of facilitative and enabling support, which are for example well represented by Sharon Drew Morgen's 'Buying Facilitation' methodology. The seller gives to the customer any and all help it can reasonably offer as might improve the customer's understanding, interpretation and commercial development of issues relating to the supply area. This is a hugely sophisticated level of selling which was difficult to see anywhere in the last century. Sellers and selling organizations take the role of teacher, guide, mentor, enabler; which can influence and help customers far beyond commercial and financial outcomes, into previously unimagined strategic business development and considerable change. Internet organizations such as Google are examples of this sort of selling, which at its best can actually give more than it takes.


early selling and sales training ideas

Much of the early development of selling skills and conventional sales training theories is attributed to American writer, speaker and businessman Dale Carnegie (1888-1955). Carnegie, from humble beginnings and several early career failures, started his training business in the early 1900s, initially focusing on personal development. Later, Carnegie's 1937 self-help book 'How to Win Friends and Influence People' became an international best-seller, and probably the major source of the ideas and theory which underpinned traditional selling through the 20th century. Carnegie's book remains a highly regarded and widely read work on human motivation, relationships and 'influencing' others.

Carnegie's ideas contain a huge amount of useful learning relating to understanding other people and their motives. As such the theories are well worth reading. In this respect, Carnegie's concepts, and other similar methods based on them, are helpful in understanding that people are all different and therefore all have different perspectives (and different to those of the seller, or influencer). This is a vital concept within selling - to appreciate that people have their own views, feelings, values, and aims. The more we can understand the other person's situation, aims and feelings, the more likely we will be able to develop rapport and trust with them, and then hopefully to arrive at suitable solutions and agreements with them. As far as this goes all is well.

However, as with all early and 'traditional' sales persuasion techniques and methodologies, the purpose of 'influence' is in the hands of the 'influencer' (or seller), and this purpose (product or service) may or may not be in the best interests of the customer. In other words, early thinking (and much current thinking still unfortunately) primarily focuses on influencing the other person (customer) to adopt an opinion or to take action in the direction which favours the influencer, irrespective of whether this is in the genuine best interest of the other person. Indeed, some modern criticism suggests that Carnegie's and other similar traditional selling methodologies and sales training systems lack honesty and integrity, which in my view many do.

Traditional methods - most of which continue to draw on the ideas and concepts contained in Dale Carnegie's 1937 book, tend to encourage sales people, or others seeking to persuade and influence, to use knowledge about the other person's (or customer's) perspective as a means of gaining their trust and flexibility, so that the customer can be led in a certain direction. Used unethically this amounts to manipulation and is therefore wrong and not sustainable.

Carnegie and others who have interpreted and developed his early ideas, commonly provide a good framework for understanding other people's needs and motives, but arguably the matters of ethics, honesty, integrity, sustainability, are omitted.

The purpose of using the techniques, and what to do with the understanding was, and remains, open to use or mis-use by the seller.

The question is - as sales-people - is our purpose (and responsibility) to exploit people - or to help people?

Therein lies the major difference between early (and still-practised) traditional selling, and modern collaborative, facilitative ideas, which in my opinion are the most effective, sustainable and ethically sound concepts for today's business world.

Look at the old ideas like Carnegie's, learn the Seven Steps of the Sale, understand consultative and needs-creation selling - they all contain useful learning and processes - but most importantly, ensure you work within a strong and ethical value-system. These days selling should more than ever focus on helping people, which of course has additional implications for your choice of organization, and the products and services that you choose to represent.


AIDA

AIDA is the original sales training acronym, from the late 1950s, when selling was first treated as a professional discipline, and sales training began. The model is said to have evolved from earlier work by American psychologists concerning assimilation and understanding of communications and information. Walter Dill Scott's 'Attention-Comprehension-Understanding' model, developed by 1913 at the Chicago Northwestern University, is cited as one example of possible contributory thinking, although this is by no means a specific single origin; in fact it is unlikely that a specific single origin for AIDA actually exists.

AIDA is perhaps more relevant and useful today than when it was first devised, because modern theories and distractions can often cause people to lose appreciation for the most basic and obvious features and requirements of a successful sales engagement.

So, especially for those learning your trade in selling or advertising or communicating with prospective customers, if you remember just one sales or selling model, remember AIDA.

Often called the 'Hierarchy of Effects', AIDA describes the basic process by which people become motivated to act on external stimulus, including the way that successful selling happens and sales are made.

A - Attention

I - Interest

D - Desire

A - Action

The AIDA process also applies to any advertising or communication that aims to generate a response, and it provides a reliable template for the design of all sorts of marketing material.

Simply, when we buy something we buy according to the AIDA process. So when we sell something we must sell go through the AIDA stages. Something first gets our attention; if it's relevant to us we are interested to learn or hear more about it. If the product or service then appears to closely match our needs and/or aspirations, and resources, particularly if it is special, unique, or rare, we begin to desire it. If we are prompted or stimulated to overcome our natural caution we may then become motivated or susceptible to taking action to buy.

Some AIDA pointers:

Attention

Getting the other person's attention sets the tone: first impressions count , so smile - even on the phone because people can hear it in your voice - be happy (but not annoyingly so) be natural, honest and professional.
If you're not in the mood to smile do some paperwork instead. If you rarely smile then get out of selling.
Getting attention is more difficult than it used to be, because people are less accessible, have less free time, and lots of competing distractions, so think about when it's best to call.
Gimmicks, tricks and crafty techniques don't work, because your prospective customers - like the rest of us - are irritated by hundreds of them every day.
If you are calling on the phone or meeting face-to-face you have about five seconds to attract attention, by which time the other person has formed their first impression of you.
Despite the time pressure, relax and enjoy it - expect mostly to be told 'no thanks' - but remember that every 'no' takes you closer to the next 'okay'.
Interest

You now have maybe 5-15 seconds in which to create some interest.
Something begins to look interesting if it is relevant and potentially advantageous. This implies a lot:
The person you are approaching should have a potential need for your product or service or proposition (which implies that you or somebody else has established a target customer profile).
You must approach the other person at a suitable time (ie it's convenient, and that aspects of seasonality and other factors affecting timing have been taken into account)
You must empathise with and understand the other person's situation and issues, and be able to express yourself in their terms (ie talk their language).
Desire

The sales person needs to be able to identify and agree the prospect's situation, needs, priorities and constraints on personal and organizational levels, through empathic questioning and interpretation.
You must build rapport and trust, and a preparedness in the prospect's mind to do business with you personally (thus dispelling the prospect's feelings of doubt or risk about your own integrity and ability).
You must understand your competitors' capabilities and your prospect's other options.
You must obviously understand your product (specification, options, features, advantages, and benefits), and particularly all relevance and implications for your prospect.
You must be able to present, explain and convey solutions with credibility and enthusiasm.
The key is being able to demonstrate how you, your own organization and your product will suitably, reliably and sustainably 'match' the prospect's needs identified and agreed, within all constraints.
Creating desire is part skill and technique, and part behaviour and style. In modern selling and business, trust and relationship (the 'you' factor) are increasingly significant, as natural competitive development inexorably squeezes and reduces the opportunities for clear product advantage and uniqueness.
Action

Simply the conversion of potential into actuality, to achieve or move closer to whatever is the aim.
Natural inertia and caution often dictate that clear opportunities are not acted upon, particularly by purchasers of all sorts, so the sales person must suggest, or encourage agreement to move to complete the sale or move to the next stage.
The better the preceding three stages have been conducted, then the less emphasis is required for the action stage; in fact on a few rare occasions in the history of the universe, a sale is so well conducted that the prospect decides to take action without any encouragement at all.


AIDCA

More recently (c.1980s-1990s) the AIDA acronym has been used in extended form as AIDCA, meaning the same as AIDA with the insertion of Commitment prior to the action stage. Arguably Commitment is implicit within the Action stage, but if it suits your sales training purposes then AIDCA is an acceptable interpretation. Commitment here means that a prospective customer is more likely to progress to the Action stage if their commitment to the proposition can first be established. As ever, adding detail make the thing less elegant and flexible, which in this case makes AIDCA non-applicable to selling methods that do not involve a two-way communication, for example, the structure of a sales letter or advert, for which AIDA remains more helpful. For two-way sales communications, discussions, presentations, etc