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9 TH EDITION. Selling Today. Manning and Reece. CHAPTER 8. DEVELOPING AND QUALIFYING A PROSPECT BASE. PROSPECT AND PROSPECTING DEFINED. PROSPECT—A potential customer that meets the qualification criteria established by your company PROSPECTING—Identifying potential customers.
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9TH EDITION Selling Today Manning and Reece CHAPTER 8 DEVELOPING AND QUALIFYING A PROSPECT BASE
PROSPECT AND PROSPECTING DEFINED PROSPECT—A potential customer that meets the qualification criteria established by your company PROSPECTING—Identifying potential customers
IMPORTANCE OF PROSPECTING • Every salesperson must cope with customer attrition --Customers move, firms go out of business, sales lost to competition --Average company may lose 15-20% of customer base every year
GIRARD’S FERRIS WHEEL—SUPPLY P REFERRALS FRIENDS DIRECTORIES TRADE SHOWS WEBSITES/DATABASES COLD CALLING NETWORKING P P P P See Figure 8.1
GIRARD’S FERRIS WHEEL—LOSS RELATIONSHIP FAILS BUSINESS FAILS BUYS FROM ANOTHER MERGER/ACQUIRED CUSTOMER MOVES DEATH OF CUSTOMER ONE TIME PURCHASER TECH CAUSES CHANGE P P P P P See Figure 8.1
PROSPECTING REQUIRES PLANNING • INCREASE NUMBER OF PEOPLE WHO BOARD FERRIS WHEEL • IMPROVE THE QUALITY OF PROSPECTS • SHORTEN SALES CYCLE BY DETERMINING WHICH PROSPECTS ARE “QUALIFIED”
REFERRALS • Prospect recommended–by current satisfied customer or one __________________________________ • Endless chain–ask contact who else could _______________________ • Friends, family members, centers of influence–a person may not make decision but has influence on those who do…_____________________
DIRECTORIES/LISTS • Hundreds of business and industrial directories available • Each major trade association usually publishes directory • Be sure to use current copy or edition as prospects shift firms…track people and companies
TRADE SHOWS/PUBLICATIONS • Trade shows and conventions – your company may have a booth at key trade shows/expositions • Trade publications–each industry has trade publications that ______________________________ • Join Trade Associations –many salespersons join trade associations to ______________________________
TELEMARKETING • Telemarketing – employs phone outreach to accomplish many objectives --to identify buyers and generate contact lists for sales staff --to qualify prospects --to verify sales leads generated by other methods --to conduct follow-ups
DIRECT RESPONSE • Direct response advertising-often features inquiry cards or information requests via mail or telephone • Sales Letters—send sales letters to decision makers, then __________
WEBSITE • Websites –provide cost-effective way for sales professionals to --project personal image --provide additional information --generate leads from visitors to site --present product information --establish e-mail lists
DATABASES • In-house databases –your firm may already have a comprehensive database…sometimes referred to as the “house list” with details on customers, purchase patterns • List sources—wide range of precise lists available from variety of sources --list brokerage firms, associations, governmental records, related but not directly competitive businesses
COLD CALLING • Simply calling prospects without referrals --new salespeople rely on these as they haven’t built referral base --must be strategically planned --prelude to in-person appointment
NETWORKING • Making and profiting from personal connections • Networking guidelines --Meet as many people as you can --Tell them what you do --Don’t do business while networking --Offer business card --Edit contacts and conduct follow-ups
EDUCATIONAL SEMINARS • Provides opportunity to showcase product without pressuring to buy • Requires extensive preparation • Starts value-added process • Can attend or present at industry- sponsored seminars or offer your own
NON-SALES EMPLOYEES • Non-sales personnel can be valued source of leads • Prospecting not necessarily exclusive task of sales force • Non-sales personnel often need training and incentives
COMBINATION APPROACHES • Salespersons generally rely on combination of prospecting methods • Some methods have higher yield than others • Important to use CRM technology to help maximize efficiency
QUALIFYING PROSPECTS • KEY TIME-SAVING PROCESS • Does prospect need my product? • Can prospect make buying decision? • Can prospect pay for purchase? • Can anyone close sale? Is sale realistically possible?
ORGANIZING PROSPECT INFORMATION • PROSPECT AS INDIVIDUAL • PROSPECT AS BUSINESS REPRESENTATIVE
PROSPECTING AND SALESFORECASTING PLANS • IMPORTANT TO BALANCE TIME AND ORGANIZE CONTACTS • Prepare a list of prospects • Forecast potential sales volume for each new account, by product • Carefully plan the sales route to minimize time and cost Last slide Chapter 8.