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3
Prospecting
and
Preparing for
Sales Dialogue
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives 5
L 1 Discuss why prospecting is an important and
challenging task for salespeople.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Key Thoughts 5
• Strategic prospecting is the process designed to identify,
qualify, and prioritize sales opportunities, whether they
represent potential new customer or opportunities to generate
additional business fro existing customers.
• Leads may be generated in a variety of methods. It is important
for salespeople to know which are more effective.
• Satisfied customers are often the best source of good leads.
• A strategic prospecting plan will improve a salesperson’s
prospecting efficiency and effectiveness.
• Salespeople should spend some time learning
what they can (without wasting resources)
about their qualified leads in order to
develop an effective sales strategy.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Importance and
Challenges of Prospecting 5
• Customer-bases are not permanent, salespeople may
lose customers due to:
– Low satisfaction
– Competition
– Economic fluctuation
– Other forms of attrition
• The prospecting process can be long
– It may take weeks to replace a lost customer
with a new one
– Revenue streams can fluctuate if “pipeline” isn’t managed
• Prospecting isn’t easy and often includes a lot of
rejection
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Buyers Won’t See Salespeople 5
1. They may have never heard of the salesperson’s firm.
2. They may have just bought the salesperson’s product
category, and there is presently no need.
3. Buyers may have their own deadlines on other issues, and
they are not in a receptive mood to see
any salespeople.
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 sometimes are
curt and even rude.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ethical Dilemma 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Strategic Prospecting Process 5
Sales Leads or Suspects
• Generated from Internal or External Sources
• Lead Generation Methods Should be Managed
Qualifying Process
• Need?
• Financial Resources
• Authority to Make Purchase Decision
Sales Prospect
• Prioritize Prospect List
• Initiate Pre-Call Planning
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Popular Prospecting
Sources & Methods 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Cold Canvassing 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
• Cold calling – contacting a sales lead
unannounced and with little or no
information about the lead
• Referral – a name of a company/person given
to the salesperson as a lead by a customer or
even a prospect who did not buy at this time
• Introduction – a variation of a referral where
the salesperson asks the prospect/customer
to prepare a note/letter of introduction that
can be sent to the potential customer
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Networking 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
• Centers of influence – well-known and
influential people who can help a salesperson
prospect and gain leads
• Non-competing salespeople – a salesperson
selling non-competing products
• Electronic networking – using social media to
help salespeople identify, gather information
about, and communicate with prospects
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Company Sources 5
• Company Records
• Advertising Inquiries
• Telephone Inquiries
• Trade Shows
• Seminars
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
• Trade shows – events where companies
purchase space and set up booths that clearly
identify each company and its offerings and
that are staffed with salespeople who
demonstrate the products and answer
questions
• Seminars – a presentation salespeople give
to generate leads and provide information to
prospective customers who are invited to the
seminar by direct mail, word of mouth, or
advertising on local tv or radio
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Published Sources 5
NAICS
Code
• Directories
– Hoovers
– Harris Directory
– Moody’s industrial
Directory
• Commercial Lead
Lists
– Sales Genie
– infoUSA
– Others
• Other Web Sources (including use of NAICS)
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Developing a Strategic
Prospecting Plan 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Developing a Strategic
Prospecting Plan 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Qualified Prospects . . . 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Qualified Prospects . . . 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Gathering Precall Information: 5
About the Buyer
• Name, title and contact information
• Education & work background
• Community & organization involvement
• Hobbies & interests
• Communication style
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Gathering Precall Information: 5
About the Company
• Type of business
• History of business
• Current strategy & performance
• Number of employees
• Target markets served
• Products & services
offered
• Key competitors
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Gathering Precall Information: 5
About the Selling Situation
• Type of purchase
• Motivation for buying
• Buying center members & roles
• Buying process
• Current supplier
• Available budget
• Competitors involved
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Ethical Dilemma 5
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Sources of Information 5
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.