Chapter 2

Prospecting and Pre-approach

Chapter objetives
• Recap selling process
• Market segmentations
• Prospecting stage
• Pre-approach stage
The sale process
Meetings market
Corporate
meetings

Convention
meetings

Association
meetings
Decision factors
 Understand different market segmentation

• Association market segmentations: from large

national & international conventions to small but expensive
• Annual convention for entire membership  largest meetings, ex:
exhibits, trade association
• Board of directors’ meetings  3 or 4 times a year and are
elaborate, expenditure per each attendee more expensive
• Seminars and workshops  providing continuing education
• Committee meetings  several times per year
Decision-making process by association is take long lead
time  assigned for most experience of sale managers or
directors
 Understand different market segmentation
• Corporate market segmentation: is broad & solicited by hotels. This
segment is quite different from association market segment, include: needs,
objectives, scales, and duration.
• Training meeting
• Sale meetings
• New product introduction meeting
• Management meetings
• Technical meetings
• Annual stockholders’ meeting
• Board of directors’ meeting
• Incentive meeting
Meeting plan is spread among several departments  large corporation have
established meeting planning department, but most corporation, meeting plan is
set by people from other areas
Understand different market segmentation
• Corporate market segmentation:
• Training meeting: for new staffs and update training for current staffs 
most common  hospitality firms are close to many offices
• Sale meetings: provide information & motivate sales staffs  less concern
about price
• New product introduction meeting: is very great fanfare, attended by dealers,
corporate sales staffs and the media  it’s very intensive & very price
insensitive
• Management meetings: need “get away” from place of business  not be
interrupted by phone or office distraction
Understand different market segmentation
• Corporate market segmentation: (cont)
• Technical meetings: mutual concern in corporation  less elaborate than
other meetings
• Annual stockholders’ meeting: maybe attended by large number of
individuals, intensive food & beverage is required
• Board of directors’ meeting: most elaborate and expensive  extensive food
& beverage presentation  usually require more expensive and special
meeting room
• Incentive meeting: usually held in resort property in exotic location and
abroad cruise lines  service is important, planners are not price sensitive
Decision factors
 Prospecting
Prospecting: is finding potential customers who
has need for a product or service, and who
possess the ability and authority to purchase
from salesperson.
Customer is qualified sale leads
Small % prospect will become actual customers
Ex: insurance industry 10-25% sale calls obtain
completed sale
 Formal prospecting sources

Centers of
Natural market Cold calls Referred leads
Influence

Repeat Local
Nests business among organizations
your clientele and companies
 Formal prospecting sources
• Natural market:
• Family
• Friends
• Acquaintances
let’s all people know about your business
Can ask for potential prospects
• Cold call: calling potential customer by phone
• Sales blitzes: call as much as you can to potential prospects
• Referred leads: satisfied customers are excellent sources, other employees may
come and contact potential customer in their life
• Unfortunately, salesman are often uncomfortable ask referrals (even though sale success for every 3.3
referrals compared with 50 cold calls & 60 letters
 Formal prospecting sources
• Centers of influence: person who can and will influence other to
give salesman appointment  people who can return referrals list
• Ex: florist, photographer  impact couples planning their weddings
• Nest: Group of people is closely knit, making up potential nest
should have 1 or more common
• Ex: business, occupation, family, social, religion or community
• Repeat business among your clientele: repeat with previous clients
 develop long & lasting relationship
• Local organizations and companies: visit identified business,
participate local organizations
Other prospecting techniqu Personal
observation

Situation
Conversing
prospecting
Pre-approach
• Salesman must know & understand prospects
and their respective businesses which are
available:
• On the internet
• Annual report
• Companies’ brochures
• In news items
• Other: calling & visiting office, speaking with
receptionist
Questions are used for pre-approaching
stage
Questions are used for pre-approaching
stage
Customer mapping
• Mapping out the buying roles of their prospects:
• Final decision-maker
• User
• Influencer
• Mentor