Module 006 - Knowing the Prospect and Prices, Discount, Credit, Policies and Practices

Good salesman-prospect relationship stems from the fact that the salesman knows how to handle his
prospect intelligently. Intelligent handling of prospects necessitates knowing them properly and
accurately. Hence, knowledge of the prospect is another key factor that is worth the salesman’s
considerations.

At the end of this module, you will be able to:

1. Know and understand the importance of knowing the prospect.

2. Create a prospecting action plan.

3. Know the different types of prospects.

Importance of Knowing the Prospect

As the salesman starts the conversation tackling about these background with him. As the salesman
starts the conversation tackling about these background information, he is able to get the undivided
attention of his prospect. The prospect become willing to share his interest for he feels that the
salesman is interested in him.

Assessing further why prospects buy, our discussion is brought to a set of factors stimulating buying
decision on the part of the prospect. The set of factors is given below.

1. His self-image

2. His past experiences

3. Hearsay experiences

4. Images he has regarding the product and its company

5. His impulses and basic urges

6. His status needs

7. His need for self-respect

8. His need for social acceptance

More on Buying Motives of Prospect

Prospects vary according to their buying motives. Further, they have different motives in buying
different motives in buying different kinds of products.

Buyers continually aspire for satisfaction in their purchase of goods and services. The following are the
most evident when interviewed by a salesperson.

1. Affiliation

2. Love and affection

3. Profit and thrift

4. Curiosity

5. Security

6. Play and relaxation

7. Pride and prestige

8. Power

9. Ease and convenience

10. Achievement

11. Sympathy

12. Sex and Romance

13. Adventure and excitement

Different Types of Prospects and How the Salesman Deals with Each One of Them

Prospects, too, differ from one another. Their needs and wants, problems, tastes, behavior, patterns
and practices come in varying forms and degrees. The objective if sharing similar vibrations with his
prospect is a primary concern of the salesman.

Cognizant of the importance of determining the type of prospect, he will call upon for a sales interview,
the star salesman later evaluates and decides on the approach and tactics he will use to deal with each
of his prospects effectively.
 The following discussion points out the different types of prospects the salesman will commonly meet
in his sales career. The salesman has to study the characteristics of each tytpe at some length to find the
right strategy to use in presenting the product for sale.

Intelligent Type – The intelligent prospect is exposed to and aware of the product. His previous
experiences with the product, sales encounters with other salesmen, the product advertisements may
have contributed to his knowledge of the product. The prospect’s nature of work, educational
background and his exposure to media may have informed him of the nature and technicalities of the
product.

Open-minded type – The open-minded prospect is nice to deal with. He tries to understand you, and
shows sincerity in everything he says and does. He will tell you, if he likes your product. Whether you
make it or not this time, you still can hope for a good business relation with the open-minded prospect.

Slow-thinking-type –The Slow-thinking prospect is like the deliberate type or the indecisive prospect.
The Slow-thinking prospect spends time evaluating the sales proposal. He does not like others to put the
blame on him. Hence, these prospects need somebody else’s assistance before placing on order.

Bargain-hunter type – The bargain-hunter prospect is looking for economy each time he purchases
goods and services. They would not let go the opportunity to purchase what they need at extra low
prices, also with certain give-away, premiums or even raffle tickets.

Argumentative type – The argumentative prospect may be hotheaded at times. They may be very
inquisitive because they like to know, or they may be asking a lot of questions to play trick or test the
salesman’s ability.

Competitive type – People who would want to shop around first before deciding to buy are what we call
the competitive type of prospect.

Factors to consider in making pricing decision

1. Consistency – prices of commodities or services should be consistent with the rest of the operations
of the establishments

2. Long-run point of view – what business man should maintain is the long run point of view in pricing

3. Price level and maximum profits – higher prices do not always bring out maximum profit and
conversely lower prices do not ensure loss

4. Pricing as an mart – setting price should also be artistic in its own right

Basic pricing decisions

Retailers make a number of fundamental decision about their general pricing policies and practices

Competitors price

Normally businessman set their price at the same level of its major rival
One price policy

In the Philippines one price policy or fixed price which is charging the same price for everyone who buys
the same item

Variable price only

The price paid by a costumer at a given time for a certain item is determined by bargaining

Leader pricing

Some retailers price certain products just above their delivered price

Unit pricing

Unit pricing is relatively new concept in retailing

Price lining

Costumers continuously crave for a wide assortment of goods when buying