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380 Personal Selling

Lorna Valdes PersSell 21

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Personal Selling

Prospecting and Qualifying

Session 2

Lorna Valdes

Chapter Four

Prospecting&

Qualifying

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Learning Objectives

After reading this chapter, you should understand:

• The steps in the personal selling process.

• The importance of prospecting.

• How to qualify leads as prospects.

• Several prospecting methods.

• The steps in developing a prospecting plan.

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The professional selling process is a continuous, interacting, and overlapping cycle of seven stages:

Stages In the Personal Selling Process

Prospecting and qualifying prospects

Planning the sales call (the preapproach)

Approaching the prospect

Making the sales presentation and demonstration

Negotiating prospect resistance and objections

Confirming and closing the sale

Following up and servicing the account

1.

2.

3.

4.

5.

6.

7.

Chapter Review Question:

Identify and describe the seven basic stages in the selling process.

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Figure 4.1:The Personal Selling Process (PSP)

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The Importance of Prospecting

• Prospecting, the initial stage, is necessary for several reasons:

• Need to increase total sales.• Customers switch to other suppliers.• Customers’ businesses are taken over by another company.• Customers have only a one-time need for the product.• Relationships with some customers deteriorate, and they stop

buying from you.• Your buying contacts are promoted, demoted, transferred, or

fired, or they retire or resign. • Customers move out of your territory.• Customers go out of business.• Customers die.• 03

Chapter Review Question:Give some basic reasons for planning sales calls.Royalty-Free, Photodisc/Getty Images



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Prospecting for Leads

Selective Searching

Random

Searching

LeadProspecting

Methods

Non-Effort LeadSearching

Effort Lead

Searching

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Prospecting for Leads

• Two basic ways to search for leads to qualify as prospects are:

• Selective lead searching can also be classified as non-effort or effort.

– Non-effort leads are leads that are supplied by the company or from an individual’s voluntary inquiry or response to advertising.

– An effort lead is one that is generated solely by the salesperson.

– Pages 104 -119

Random Searching1. Selective Searching2.

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Table 4.1 Looking for Leads

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Table 4.1 Looking for Leads cont’d

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Random-Lead Searching

• Sometimes called "blind" searching, generates leads by randomly calling on businesses.

• Examples of random-lead searching include:

1. Door-to-door canvassing and cold calls– Door-to-door canvassing refers to knocking on doors in a

commercial area without an appointment to locate prospects.

– Cold calling refers to approaching or calling a business without an appointment for the purpose of prospecting or selling.

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Random-Lead Searchingcont’d

2. Territory blitz of organizations

– A territory blitz refers to an intensified version of door-to-door canvassing in which several salespeople join efforts to call on every organization in a given territory or area.

3. Advertising– Using broadcast or print media.

4. Electronic mail and websites– Sending emails and using websites to look for leads.



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Selective-Lead Searching: Direct Sources• This refers to systematic strategies to generate leads from

predetermined target markets.

• Friends, neighbors, and acquaintances• Satisfied customers and former customers• Junior salespeople and sales associates• Professional sales organizations• Mailing lists and directories• Personal observation• Centers of influence• Spotters• Endless chain• Networking• Internet (e-mails)• Company records• Newsletters• Surveys

Chapter Review Question:What is the centers-of-influence approach to finding potential customers? Why is the centers-of-influence approach the preferred method for seeking leads among professionals such as doctors, lawyers, insurance agents, financial advisers, and accountants?

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Table 4.2 Selected Internet Sources of Information For Prospecting

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Internet Sources For Prospecting

• To find information on industrial activity, go to:

-http://www.census.gov/cir/www/

• To find data on over 10,000 corporations, go to :

-http://www.moodys.com/cust/default.

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Sources Selective-Lead Searching: Indirect

• General announcements or calls to potential markets, hoping that prospects will come forward and identify themselves.

• Examples of indirect sources of selective-lead searching include:1. Direct mail: When preparing a direct mail piece, follow these

guidelines:• Address your letter to an individual• Use an attractive format• Keep it simple• Stress benefits• Provide proof• Ask for action• Follow up your mailing • Keep records of mailing results

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Sources Selective-Lead Searching: Indirect

1. Trade shows, fairs, and exhibits

2. Professional seminars, workshops, and videoconferences

3. Contests

4. Free gifts

5. Unsolicited inquiries

6. Telemarketing for proposals

Chapter Review Question:

Distinguish between random searching and selective searching for leads. Give some examples of each.

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Marketing Information Systems

• An organization’s MIS is a systematized, continuous process of gathering, sorting, analyzing, evaluating, and distributing market information that can be useful in prospecting and obtaining leads.

Chapter Review Question:What is a marketing information system (MIS) and how can it help manage leads?



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Customer Relationship Management

• A business strategy designed to augment revenues and increase profitability of companies through better understanding of customers’ needs and behaviors

• Uses sophisticated computer systems to help identify prospects and put customers at the center of a company’s business activities and decision-making processes

• Brings together diverse information (compiled from data sources within and outside the organization) about customers, sales, and marketing to develop a more holistic view of each customer

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• CRM provides precise computerized information about individual customers to help company employees (sales, customer service, and marketing representatives)

Customer Relationship Managementcon't

• Develop target marketing strategies • Create up-selling and cross-selling

opportunities• Use successful competitive positioning tactics • Assist customers in making fully satisfying

purchases that lead to long-term customer loyalty

Chapter Review Question:Define customer relationship management and discuss how it be used to manage relationships with customers.


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Data Mining Systems

• A procedure that uses statistical software to mine volumes of data to identify “hidden” interrelationships among buyers and the products they purchase, along with associated complementary products

• Can be used to identify leads, prospects, and buying patterns

• Used by diverse firms such as Harrah’s Entertainment and Wal-Mart

Chapter Review Question:Describe data mining.

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Sales and Marketing Executives Marketing Library

• For prospecting or any other stage in the PSP, Sales and Marketing Executives Marketing Library is an outstanding source of information and help for salespeople.

• The library offers:– More than 200,000 searchable articles on sales

and marketing – Discussions by top marketing/sales leaders

about their latest strategies and ideas

– Access to the world’s first knowledge base in sales and marketing.

– Company and industry profiles

– The latest compensation data for salespeople, sales managers, and marketing managers, plus much moreRoyalty-Free, Stockdisc/Getty Images

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• To maximize prospecting activities, salespeople must develop and execute a comprehensive prospecting plan, which has several steps:

The Prospecting Plan

1. Set objectives for prospecting

2. Allocate time for prospecting

3. Become familiar with prospecting techniques

4. Choose one or more prospecting techniques

5. Systematize the prospecting plan

6. Evaluate the results (use Prospecting Methods Evaluation Form)

Chapter Review Question:Describe the different elements of a prospecting plan.


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Figure 4.2 Prospecting Methods



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Prospects: The Salesperson's Pot of Gold

• Without prospects, the personal selling process can’t begin • Prospects are essential to the continuing health of any sales

organization • An old maxim for salespeople is “Apply your ABP’s,” i.e., Always

Be Prospecting

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Qualifying: How a Lead Becomes a Prospect

QualifyingCriteria

Profitability

Accessibility

Need

Authority

To Buy

Money

To Buy

Eligibility

To Buy

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Qualifying: How a Lead Becomes a Prospectcon't

• A lead points to a potential buyer • Salespeople must qualify a lead in terms of 4 basic criteria that can be

remembered by the acronym NAME , as follows:1. Need or want2. Authority to buy3. Money or ability to buy4. Eligibility to buy

• Two other qualifying criteria are:1. The accessibilityof the individual 2. The potential profitability of the prospect over the long run

Chapter Review Question:What four criteria determine whether a lead becomes a

prospect?

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Prospect to consumer

• Watch skilled salespeople at work and you soon realize that while selling is an art that can be approached in a variety of ways, it boils down to four basic steps:

• open

• ask for needs

• demonstrate

• close

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Key Terms• Personal Selling Process (PSP)

– Also known as the seven-stage process of professional personal selling, from prospecting and qualifying prospects to following up and servicing customers.

• Prospecting– The process of searching for leads—people and organizations that

might need your product— and then qualifying them as prospects or potential customers.

• Random-Lead Searching– Generation of leads by randomly calling on organizations.

Sometimes called "blind" searching . • Lead

– Anything—a name, address, or telephone number—that points to a potential buyer.

• Prospect– A lead that has been qualified as a definite potential buyer.

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Key Terms• Selective-Lead Searching

– Application of systematic strategies to generate leads from predetermined target markets.

• Door-to-Door Canvassing– Knocking on doors in a commercial area without an appointment

to locate prospects.

• Cold Calling

– Approaching or calling a business without an appointment for the purpose of prospecting or selling.

• NAME– An abbreviation for the process of qualifying a lead in terms of

need for the product, authority to buy, money to buy, and overall eligibility to buy

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Key Terms• Territory Blitz

– An intensified version of door-to-door canvassing in which several salespeople join efforts to call on every organization in a given territory or area.

• Spotters– People who work in jobs where they meet many other people and

who can help salespeople obtain business leads. Also called "bird dogs."

• Endless Chain– A classic method of prospecting in which the salesperson simply

asks recent prospects for further prospect referrals.

• Networking– Meeting others in social or business settings to talk informally,

establish rapport, and build relationships with people who can be contacted later for referrals or as potential prospects.



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Key Terms

• Centers of Influence– Individuals or groups of people whose opinions, professional

activities, and lifestyles are respected among people in the salesperson's target markets.

• Marketing Information System (MIS)– Any systematized, continuous process of gathering, sorting,

analyzing, evaluating, and distributing market information. Can be helpful to salespeople in obtaining leads and prospects. An MIS can be particularly helpful to salespeople in obtaining new leads and prospects.

• Customer Relationship Management– A business strategy designed to augment revenues and increase the

profitability of companies by better understanding their customers’ needs and buying behaviors—and, in that process, developing a stronger relationship with their customers.

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Key Terms

• Data Mining

– A procedure that uses statistical software to mine volumes of data to identify “hidden” interrelationships among buyers and the products they purchase, along with associated complementary

products

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Chapter Review Questions

1. How can internal company records, such as warranty cards, be of value in developing lists of prospects?

2. Describe the survey approach to generating leads.

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Video - Pitching to the Dragons

Take note of the Dragon’s Den Presentation Tips –These tips and your understanding of them will form the bulk of your mid-term exam.

380 personal selling - proflornavaldes.files.wordpress.com...prospecting and qualifying session 2...

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