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ANDREW ZIELINSKI, MBA www.accrongroup.com/fengyeschool/

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Module 6: Prospecting

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Module Summary (36 Hours: 3 - 3.5 Weeks ) 1. Defining a Target Customer Base 2. Building a Database 3. Determining a Sales Territory 4. Communicating in Writing with Target Customers 5. Communicating by Telephone with Target Customers 6. Meeting in Person with Target Customers 7. Post Mortem and Follow-Up Competency Achieved: How to develop prospects within a given sales territory

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Introduction Definition Functions Steps Additional Channels

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To get us started 1. A sales rep says: Everyone is a potential customer for my company. Do you think this is true? Explain 2. Try naming three types of information that you think would be important to see in a prospect profile 3. You work for a company that specializes in creating special effects on film. Name two types of organizations that could be likely prospects 4. You are a sales representative for a company that makes high-end kitchen cabinets. Name two sources of information that you would consult in order to search for new prospects 5. Which is the most effective channel for prospecting: mail or telephone? (trick question)

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To get us started 6. What do you think is the difference between a conversation with a friend and a prospecting call? 7. Should you leave a voice mail message or a message with the receptionist?

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Definition The first step, in Sales On-going, never ends Searching for new customers and exploring the potential of new sources of customers Functions Prospecting ensures the continued operations of the company If the companys customer base is like a bath tub, prospecting is the tap that keeps water flowing in with customers but the tub is not properly plugged and some customers drain out. For the tub to remain full, and for the company to continue to operate, the flow of incoming customers must be greater than the flow of outgoing customers

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Why do Customers Leave? Neglected Service Dis-satisfied with Product Price Competition Other Business Reasons Relocation Death CEMEQ, Collection Representation, Module 6

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Why Prospect? Renew the client base as customers sometimes leave Maintain and Grow sales activity Maintain and grow profits Ensure regular business Discover new customer needs Find market trends in order to ensure offerings remain current Discover new ideas to expand market Measure current market position relative to competitors

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Preliminary Step: A Marketing Understanding A Sales Representative would be well advised to be aware of the following before starting on prospecting activities: What is my companys current go-to-market plan: launching new products, opening new locations, etc.? What is the current market environment: new competitors, economics, demographics? What are my companys target markets and customers? Who is interested in purchasing our products/services? What are my companys short and long term financial goals? What are the benefits and advantages of my products/services? What is the value-add to my products/services compared to competitors?

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Steps to Prospecting Pre-requisite: Know the market in which you operate! MarketDescription IndustrialManufacturing & transformation, the secondary sector. Sell primary products, equipment, supplies, vehicles, etc. InstitutionalPublic and para-public organizations that offer professional services. Sell to government departments, municipalities, hospitals, teaching establishments, financial institutions, etc. Products: office supplies, IT equipment, etc. Commercial/Dis tribution Businesses such as retailers, groceries, garages, car dealers, wholesalers, hospitality and restaurants. Sell products for resale, office supplies, services Professional Consumption Professionals purchase for their own use, in their business GeographicSpecifically defined region. Can include a mix of customer types: industrial, commercial, professional, etc

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Steps to Prospecting 1. Segment the market and target your customers 2. Create a prospecting database or filing system 3. Evaluate your prospects in order to prioritize according to probability of purchasing 4. Determine optimal prospecting approach: mail, email, phone, mass mailing/advertising, cold call, events, etc. 5. Plan and execute prospecting starting with reaching out and setting appointments, demos, etc.

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When to Prospect This is not a mechanical process Always prospecting, however, prospecting campaigns that provide additional focus and time, can occur at key points in your market cycle

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Selecting a Prospecting Strategy The Sales Environment 6-9 Contacts to make a sale Making a sale with the first customer, on the first visit increasingly more difficult due to competition, fickle customers, and difficulty in convincing customers Prospecting strategy aligns with corporate marketing plan. Based on: Market position Market dynamics Area of activity Etc.

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Examples Strategy/Ap proach DescriptionExample CalendarSets prospecting activities as a function of daily, weekly, monthly, or yearly cycles in the target market An enterprise service prospecting activity works during regular office hours but also works after hours, at Chamber of Commerce or industry association events Product/Ser vice Prospecting activities are organized around product or service offerings Company offer summer products, like garden furniture. Marketing starts at the end of winter since there is no interest in tehm during Fall and Winter

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Examples Strategy/Ap proach DescriptionExample EnterpriseProspecting activities are planned as a function of corporate objectives Your company is opening new branches, launching a new product, addresses a new competitor, prospecting activities will focus on these corporate priorities Sales Representat ives Prospecting activities driven by sales resource ability and availability Shrinking team means less prospecting capability. Increased budget means more activity or more elborate activity, better tools, etc.

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Prospecting Approaches Direct - Sales Representative takesthe initiative to approach the prospect and build the relationship Indirect by referral. Sales representative is introduced to the prospect through a mutual acquaintance As mentioned previously, this is the difference between a cold call (direct) and and warm call (indirect) Following, is a summary of some direct and indirect prospecting approaches:

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ApproachDescription/Function DIRECT Correspondence (mail or email) This type of initial communication is more personalized that a mass mailing or general advertisement Lower costs Mass Mailing Non-personalized. Usually, blankets a geographic area or a marketing list. Sometimes goes to a specific person Results not a good as with Correspondence Costs vary dending on quality of mass mailing items

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ApproachDescription/Function DIRECT (Continued) Telemarketing Personal contact using telephone in order to set up a meeting Less costly than in person prospecting Results can be quite interesting in certain markets In-Person In consumer area, this is door-to-door prospecting Also known as cold calling, in the sense that your prospect is not previously aware of your visit, or call Comparatively high cost, time consuming Results vary greatly Advantage: good technique for collecting information on prospects in a common geographic area

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ApproachDescription/Function INDIRECT Recommendation From a current customer, colleague, or personal contact Lead from Supervisor Boss sends you a lead that needs to be called Advertising Purchase of air, TV, radio, web, magazine, or billboard space. Social networking and blogging from Events Market events that bring together people and businesses with a common interest Expensive, usually effective Time consuming and very disciplined follow-up required

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Other Useful Prospecting Approaches Staying focused and committed to RESULTS Digital Marketing SEO, Adwords, blogs, web site Social Networking product placement and endorsement Telepresence Webinars (WebEx, Go-to-Meeting) Show Me the Money! - YouTube/Vimeo, Online ads Online Sales eCommerce, auctions Contests The Importance of Loyalty Programs, Recognition

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Establishing Your Presence Becoming an integral part of your territory is important Where to potential clients socialize? Professional associations, social clubs Publishing articles in industry papers, web sites Purchasing advertising space in industry periodicals, etc. Participate in industry evets: golf tournaments, networking breakfasts, workshops, conventions, etc.)

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Re-Approaching Neglected Customers A great opportunity to work a patch that has been identified as fertile but that nobody has been tending to Need to look beyond customers initial cynicism Obtain valuable marketing insight into needs, size of demand, and what went wrong last time

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Addressing Product/Service Obsolescence Upgrading old equipment, software, processes, etc. is a lucrative business Puts the sales representative in a more consultative type of role very effective sales position

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Activity 6.1.1 1. Go to class web site, Modules 6 and 7, Class 32 and download Activity 6.1.1 2. Answer all questions and cases 3. Save as: Activity611_FirstName_LastName.docx