Prospecting

Chapter 7
 Important Questions
Answered
Why is prospecting important for effective selling?
Are all sales leads good prospects? What are the
characteristics of a qualified prospect?
How can prospects be identified?
How can the organisations be identified?
How can the organisations promotional programme be
used in prospecting?
How can an effective lead qualification and management
system aid a salesperson?
How can a salesperson overcome a reluctance to a
prospect?

2
The telemarketing aspect of my
process can be frustrating at times
because Ill call prospects that
wont give me the time of day.
~Tasha Stulz
Parker Marketing Research

7-3
 Prospects - Dictionary
Meaning
An apparent probability of advancement,
success, profit, etc.
The outlook for the future: good business
prospects.
Anticipation; expectation; a looking
forward.
Something in view as a source of profit.
Potential or likely customer, client, etc.
A potential or likely candidate.

4
 THE CONCEPT OF

PROSPECTING
A salesperson without prospects is out of
business.
A salesperson without prospects can no more
close a sale than a surgeon without a patient can
operate.
Presenting a professional appearance, giving an
impressive presentation and closing like a master
are not enough to prevent failure if too little
attention is given to prospecting.
If your closing ratio is lower than you like, the
major problem may be that you don't have enough
good prospects -- not that you are a poor closer.
You must have someone to whom to tell your
story -- someone who wants to buy and can buy.
Prospects are everywhere - find the best

5
 QUALIFYING THE
PROSPECT
Moving from a "lead" to a qualified prospect

Lead Just a name

Researched for need, money

Prospect
authority

Qualified Evaluated prospect along with

Prospect personal information

6
 Relationship Between the
Steps in the Selling Process
and the Designation of the
Buyer

7-7
 The Importance of
Prospecting
Many experts believe it is the most
important activity a salesperson does
It is the process of locating potential
customers for a product or service.
The world is constantly changing
More important in some fields than in
others
No salesperson can ignore leads, even in a
position requiring less emphasis on new
contacts

8
 Class A Prospects
Referral from a person the prospect
respects

Has the ability to make a buying decision

Has the ability to pay for the product or

service

You have all the personal information you

need to make a good presentation

9
 Characteristics of a Good
Prospect
Starts with a Lead, which should be
qualified.
Quite some time is spent; amount of time
spent depends upon the type of sale.

10
A qualified prospect is MAD
He or she has:
Money to buy
Authority to buy
Desire to buy

11
 Qualify with the MADDEN
Test
M oney Research credit before

A pproachable Can you get an

appointment

D esire You may have to create or

discover

D ecision-Maker Often missed by

salespeople

May be committed already

E ligible our company may turn
down

12
 Questions Asked To Qualify
And Pinpoint A Good Prospect
Does the lead has a want or a need that
my product/service can satisfy?
Does the lead have the ability to pay?
Does the lead have the authority to buy?
Can the lead be approached favourably?
Is the lead eligible to buy?

13
 Does a Want or Need Exist?
People buy to satisfy tangible as well as
practical needs.
Sometimes sales are made through
creating high pressure tactics but in this
way a potential long-term customer is
lost.
The lead must want to solve a problem to
be considered a qualified prospect.

14
Does the Lead have the Ability
to Pay?
The ability to pay separate Lead from
prospects.
A client is not a real prospect without
resources to pay for the product
Ability to pay includes both cash and
credit
The client may have a desire to buy but if
she/he is unable to pay, is not a Prospect

15
 Does the Lead have the
Authority to Buy?
Knowing who has purchasing authority
saves the salesperson time and effort and
results in a higher percentage of closed
sales
It is better to simply ask that person if
that person has the authority to buy.
Companies also delegate their
purchasing tasks to outside vendors
system integrators

16
 Can the Lead be Approached
Favourably?
At times they are very difficult to be
approached e.g. Chief Executives etc that
the salespeople do not consider them as
prospects
Possibility of getting an interview and
Chances of making a sale

17
 Is the Lead Eligible to Buy?
Salespeople should be careful in contacting
as if the company sells to wholesalers then
only the wholesalers should be contacted.
Salespeople should also be careful in
locating the prospects that they should be
in their exclusive sales territories
Volume
Status
Sales territories

18
 House accounts
large or potential customers that are
handled exclusively by the corporate
executives should not be contacted by
the salespersons

19
 Other Criteria
Leads that meet five criteria are
generally considered excellent prospects.
At times a few more are added to the list
depending upon the company/item being
sold.
Timing of the purchase
Long-term customer potential

20
Why we lose old customers
Customer's company goes broke

Competitor takes your customer

Customer moves or dies

Merger or downsizing

Customer-salesperson relationship
deteriorates
21
 How and Where to Obtain
Prospects?
Satisfied Customers
Endless-Chain Method
Centre-of-Influence Method
Networking
Promotional Activities
The Internet
Inquiries from Advertising and Direct Mail
Shows
Seminars
Lists and Directories
Canvassing
Spotters

22
How and Where to Obtain Prosp

Telemarketing
Limitations of Telephone Prospecting
Tie-in With Other Tools

Sales Letters
Other Sources of Leads

23
How and Where to Obtain
Prospects Satisfied
Customers (contd.)
Selling
deeper
Additional
Referral events sales to
Gatherings satisfied
designed to customers
allow current who provide
customers to leads.
introduce
prospects to the Negative
salesperson, to referral
generate leads. Customer who
tells others
about how
poorly you or
your product
performed.

7-24
Prospecting Methods that
Work!

25
 Telemarketing

Salesperson uses phone and/or

telemarketing staff to generate leads
Outbound vs. inbound telemarketing

26
The Processing System
Within a Telemarketing
Center

27
 Reports From a
Telemarketing Center to
Other Marketing Groups
Within the Firm

28
 Referrals

Have referral make the initial contact

Learn how to ask for a referral

Get letter of introduction

Have referral call the prospect

Referrals tend to be horizontal

29
 Why people don't give
referrals
Can't think of anyone

Object to giving referrals

Time constraint

30
 Centers of Influence
Sales person cultivates well-known,
influential people in the territory who are
willing to supply lead information
Buying community
Believes in what you are selling
Is influential with a number of people
Is willing to give you names
The names given to you are at least
partially qualified prospects, more than
just leads
May never buy

31
 Spotters

Salesperson pays someone for lead

information

32
 Group Prospecting
Give a brief presentation to a group

Follow up with interested prospects

Trade shows

Speaking engagements

Seminars

33
 Seminars

Salespeople use seminars for

prospects to generate leads
Appeal to a specialized market
Invite good prospects
Go high-quality
Be involved before, during, and after

34
 Shows, fairs, and
merchandise markets
Salespeople use these venues for lead
generation
At many tradeshows all attendees are
customers
Timely follow-up of leads is critical if
sales follow a show

35
 Planned Cold Calling
Salesperson tries to generate leads by calling
on totally unfamiliar organizations
At least one out of seven will be receptive.
Treat cold calls as a supplement.
Develop effective, memorable door
Don't neglect others by too much of this.
Preplan Cold Calls
openers
Limit Waiting
Fifteen minutes
Keep busy while waiting
Remain Enthusiastic

36
 Direct Mail or Fax
Prospects do read well targeted direct
mail
Watch quality of purchased lists
Create your own newsletter
Mailing is good and Cheap
Postcard pack
Bounce-back card

37
 Sales letters

Salesperson writes personal letters to

potential leads
Follow up with a telephone call
Include promotional items

38
 Internet
Salesperson uses websites, e-mail,
listservers, bulletin boards, forums,
roundtables, and newsgroups to
secure leads
Extranets
E-selling

39
Ads, catalogs, and publicity
Salespeople use these forms of
promotional activities to generate
leads

40
 Joining Civic Groups
Assume leadership responsibilities
Become highly visible
Set contact goals for each club
meeting
Keep files on each contact made
Use "re-meet " goals to help you
develop closer relationships
Reach out to new members
Use active listening
Look for sales opportunities
41
 Networking - active
cooperation
There are formal groups that you can join
Sharing information makes good sense
Salesperson uses personal relationships
with those who are connected and
cooperative to secure leads
Suggestions:
Call at least two people per day and go to at least
one networking event every week
Spend most of your initial conversation with a new
contact talking about his or her business and
learn about the persons nonbusiness interests
Follow up with your new contact on a regular basis
42
 Endless chain

Salesperson attempts to secure at

least one additional lead from each
person he or she interviews
Referred lead

43
Example: Endless-Chain
Method

7-44
 Using Directories

Salespeople use secondary data sources,

which can be free or fee-based
Purchasing lists
Sales and Marketing Management -
buying power index
Moody's Industrial Manual
Poor's Register of Directors and Execs
The Dun and Bradstreet Reference book
The Thomas register of American
Manufacturers
Contacts Influential 45
 Observation
Prospects are everywhere
Always be looking
Read the news
Trade journals

46
 Other sources of leads
Salesperson uses noncompeting
salespeople, people in his or her own
firm, friends, and so on, to secure
information
Government agencies

47
 Company Initiated
Prospecting
Telephone
Human calls
Telemarketing
Computer generated calls
Fewer leads
Lower cost

Direct mail
Advertising
Newspaper
Other media

Past Customers
Go over list of inactive accounts

Selecting the right show

On the spot vs. lead generation
Display planning
Trade Shows Staffing the booth
Pre show training
Getting high visibility
Managing information collected at show
Planning follow up

For Prospecting
Web Sites
Streamline the sales process
48
Joint marketing with other firms
 MANAGING PROSPECT
INFORMATION
Initial Recording of Leads

1.Record all basic information

2.If you don't have a computer then use index cards

Classification of Prospects

1. A simple method for manual systems

a.Class A - You have enough information to make a presentation
b.Class B - You need more information to make a presentation
c.Class C - a "lead" you don't know much more than the name
2.Sophisticated, multi dimensional classifications can be done with a computer

Scheduling Contacts

1.Contact prospects using a prioritized list

2.Keep a tickler file. 49
 USING TECHNOLOGY TO
MANAGE PROSPECT
INFORMATION
Personal Databases

Corporate Databanks

Improving
Salespeople now have access to the most current
Communications
information

50
 Lead Qualification and
Management Systems
The process developed by the salespeople
for qualifying leads is called Lead
Qualification System
The process of analysing the relative
value of each lead is called Lead
Management System
Prequalification
Analyzing lead value
Evaluating profitability of sales resulting
from lead-generating activities

51
 Overcome a Reluctance to

Prospect
Salespeople usually face a natural reluctance to prospects.
Reasons for this may be one or several out of the following:
Worrying about the worst-case scenarios
Spending too much time preparing
Being overly concerned with looking successful etc.
Being fearful of
Making group presentations
Appearing too pushy
Losing friends or family approval
Using the phone for prospecting
Feeling intimidated by people with prestige or power, or
feeling guilt at having a career in selling
Having a compulsive need to argue, make excuses, or blame
others

52
 Helpful activities to Overcome
a Reluctance to Prospect
Helpful activities
Identify and evaluate excuses not to call
Engage in sales training and role-playing activities
Make prospecting contacts with a supporting partner or sales
manager
Set specific goals for all of your prospecting activity
Realize the economic value of most prospecting activities
Stop negative self-evaluation from ruling your behavior
Remember that you are calling on prospects to solve their
needs
Control your perceptions of what prospects might say about
you, your company, or your products
Learn and apply relaxation and stress-reducing techniques
Recount your own prospecting successes, or those of others

53
Reasons for Call Reluctance
Yielder
Fears intruding on others or being pushy.

Overpreparer Overanalyzes
Underacts.

Emotionally unemancipated Fears loss of family approval

Resists mixing business and family.

Separationist Fears loss of friends

Resists prospecting among personal friends.

Hyper-Pro Obsessed with image

Fears being humiliated.

Role rejecter
Ashamed to be in sales.

Socially self-conscious
Intimidated by upmarket customers.
Doomsayer Worries, wont take risks.

Telephobic
Fears using the telephone for prospecting or selling.

Stage fright
Fears group presentations.

Referral aversions
Fears disturbing existing business or client relationships.

Oppositional reflex 54
Rebuffs attempts to be coached.
 Summary

Locating prospective customers is the

first step in the sales process.
Not all sales leads qualify as good
prospects.
Many methods can be used to locate
prospects.
The best source is a satisfied customer.
Effective prospecting requires a strong
plan that hinges on developing a lead
qualification and management system
and overcoming reluctance to prospect.
7-55
End of Chapter 7
Thank you