sales prospecting & selling

8/4/2019 Sales Prospecting & Selling

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PERSONAL

SELLINGAND SALES

MANAGEMENT


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Definition of Personal Selling

Personal selling

1) two-way flow of communication

2) between a buyer and seller

3) a face-to-face or real time encounter

Why are face to face and two-way important?


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Provides a detailed explanationor demonstration of product

Message can be varied to fit the

needs of each prospective customer

Can be directed to specificqualified prospects

Instant feedback

Personal persuasion can be usedA good salesman can getyou to buy ice in winter

Advantages of Personal Selling


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When to Use Personal Selling

Customers are concentrated

There are few customers

Product is technically complex

Product is custom made

Product has a high value

Selling image, not product


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Creating Value Through Salespeople

Relationship Selling

building ties to the customer, based on a

salespersons attention and commitment to

customer needs over time.


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1) Prospecting

2) Pre-approach

3) Approach

4) Presentation

5) Close

6) Follow-Up

Six stages of Personal Selling


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Personal Selling: Prospecting

Prospect- possible customer

Qualified Prospect-customer who has desire,

means and power to decide

Cold Canvassing- seller initiated contact of,potential

customers without advance warning.


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3) Approach-First meeting(Physical impressions highly important-appearance, timeliness, confidence)

2) Pre-approach-Gathering information

(when to call, income level, risk tolerance)

Personal Selling:Pre- Approach & Approach


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Personal Selling:Presentation

A) Stimulus-Response Format (suggestive selling)keep suggesting items until the buyer responds, like the

McDonalds order taker

B) Formula Selling Formatmore formal and planned,

like a telemarketer

Canned Selling Presentation

Memorized, standardized message

conveyed to every prospect.

Works when seller is a novice or

does not know the buyer well


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Personal Selling: Presentation

Need-Satisfaction Format-Let the customer do the talking-

Salesman probes, listens then suggests,

like a financial planner

Adaptive Selling- pro-active but selective

presentation of offerings,

based on pre-approach data

Consultative Sellingre-active presentation

for problem solution


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Personal Selling: Presentation

Handling Objections

Acknowledge and Convert the Objection-

use the objection as a reason to buy (expensive)

Postponehold off answer because next info will convince buyer

(complicated)

Agree and Neutralize

show the objections insignificance (side effects)

Denial

refute objection with clear facts


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Personal Selling: Close

Trial Close-Can I put you down for blue or green?

Assumptive Close-ask about delivery or warranty choices.

Urgency Close-Offer valid for today only.

Final Close-Buyer initiated acceptance of the sale.


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Address concerns with delivery and installation,

so todays customer becomes tomorrows

qualified prospect or referral source

Personal Selling: Follow-Up


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Sales Force Motivation

Compensation

Straight Salary Compensation Plan

Straight Commission Compensation Plan

Combination Compensation Plan


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Sales Force Evaluation

Quantitative Assessmentssales quotaseasy but ignores selling environment

attitude

attention

product knowledge

selling skills

appearance and professionalism

Qualitative Assessmentsbehavioral evaluations


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Personal selling involves the

two-way flow of communication

between a buyer and seller, often in a

face-to-face encounter, designed to

influence a persons or groups

purchase decision.

Personal Selling


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Prospecting and Pre-approach


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Improving Productivity

Through ProspectingAn Experts Viewpoint:Prospecting process that treats the generation of salesleads and qualification of prospects as an ongoing

sales strategy. . . .

Action


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Improving Productivity

Through ProspectingAn Experts Viewpoint:

A comprehensive screening system not only improves the

closing ratio of salespeople and account managers, but alsohas a positive influence on customer satisfaction andretention by better assuring the right match betweencustomer needs an company solutions.

Result


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Why Buyers Wont See

Salespeople1. They may have never heard of the salespersons firm.2. They may have no need; they just bought the product

category.

3. The buyer may have their own deadlines on other issues.

4. Buyers are constantly getting calls from salespeople and

do not have the time to see them all.

5. Gatekeepers in any organization screen their bosses calls

and are often curt and even rude.


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Prospecting

The process of identifying, qualifying, andprioritizing organizations and individuals thathave the need for and potential to purchase

the salespersons market offering of productsand services.

QualifiedProspects

SalesLeads

ScreeningProceduresfor QualifyingLeads


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Prospecting Plans are the

Foundation for EffectiveProspectingSet Goals

Establish daily,weekly andmonthly quotas foracquiring newprospects


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Establish a regulardaily schedule forconductingprospectingactivities.

Allocate Time


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Track your resultsfrom using thedifferent prospectingmethods.

Keep Records

Allocate Time


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Foundation for Effective

ProspectingSet Goals

Evaluate

What is working foryou? Compareresults and use themethods that workbest for you.

Keep Records

Allocate Time


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Foundation for Effective

ProspectingSet Goals

Evaluate

Develop confidence

by knowing yourproducts andbelieving that youoffer the best

solutions.

Keep Records

Allocate Time

Stay Positive


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Popular Prospecting Sources &

Methods

External Sources Referrals

Introductions

Community Contacts(Centers of Influence)

Organizations

Non-competingSalespeople

Visible Accounts


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Methods

Internal Sources Company Records

Lists and Directories

Advertising Inquiries Telephone Inquiries

Mail Inquiries

Internet or WorldWide Web


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Methods

Personal Contact

Observation

Cold Canvassing

Trade Shows

Bird Dogs (Spotters)


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Qualified Prospects . . .

Can benefit from the sales offering Have the financial wherewithal to make the purchase Play an important role in the purchase decision process Are eligible to buy based on a fit within the selling

strategy Are reasonably accessible and willing to consider the

sales offering Can be added to the customer base at an acceptable

level of profitability

I f Eff i P i


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Importance of Effective Prospecting

OneCustomer

100Leads

Many Leads

Few QualifiedProspects

Many QualifiedProspects

Few Customers

Suppose it takes 10leads to generateone qualifiedprospect

And suppose it

takes 10 qualifiedprospects togenerate onecustomer

It will take100 leadsto generateone customer

I t f Eff ti P ti


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Importance of Effective Prospecting

OneCustomer

50Leads

The better the lead generation method, thehigher the proportion of qualified leads.

The more accurate the qualifying process, thehigher the proportion of customers perqualified lead.


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Gathering Precall Information:

The Prospect

The prospects name and title

Correct spelling and pronounciationcan be gathered by asking the

receptionist or secretary orgatekeeper to verify information.


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The Prospect

Is this prospect willing to takerisks? Are they confident with their

decision making?

May have to ask the prospect


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The Prospect

Observe club or organizational

honors displayed in the office.

Is the buyer involved in theircommunity? Do they belong to

clubs or professional organizations?


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The Prospect

Does the prospect have hobbiesor interests they are proud of?

Observation of office.


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The Prospect

What is the prospects personality

type? Easy going? All business?

Observation and experience with buyer.


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The Prospect

Where did this prospect grow up?Where were they educated?

Look for diplomas. Ask.


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The Prospects Organization

What type of business are wedealing with?

Can be gathered from a directory

and company web site.


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To what market does the company sell?Who are its primary competitors?

What does the company make and sell?

Annual reports and company web site.


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Salesperson may have to ask for this

information.

Who and how many vendors does theprospect presently buy from?How much and how long have they been

purchasing from their supplier(s)?What challenges is the organizationfacing?

sales prospecting & selling

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