PROSPECTING -

THE LIFEBLOOD
OF SELLING
Chapter 5
LEARNING OBJECTIVES:
• At the end of the Discussion, The student will able to:

• Explain the 10 Steps in the Selling Process

• Discuss the concept of Prospecting
• Enumerate the Different Methods in Prospecting
• Explain the importance the power of referral
THE SALES PROCESS HAS 10 STEPS
• The sales process refers to a sequential series of actions
by the salesperson that leads toward the customer taking
a desired action and ends with a follow-up to ensure
purchase satisfaction.

• Although many factors may influence how a salesperson

makes a presentation in any one situation, a logical,
sequential series of actions exists that, if followed, can
greatly increase the chances of making a sale.
STEPS BEFORE THE SALES
PRESENTATION
• A successful salesperson begins with prospecting
obtaining an appointment with the prospect and planning
the sales interview prior to ever actually meeting with the
prospect.

• One rule of thumb states that a good sales process

involves 20 percent presentation, 40 percent preparation,
and 40 percent follow-up, especially when selling large
accounts.
PROSPECTING — THE LIFEBLOOD
OF SELLING
• Prospecting is the first step in the selling
process. A prospect is a qualified person or
organization that has the potential to buy
your good or service.

• Prospecting is the lifeblood of sales

because it identifies potential customers.
You find people that are MAD.

• As a salesperson, you can ask yourself three questions to

determine if an individual or organization is a qualified
prospect:

• 1. Does the prospect have the money to buy?

• 2. Does the prospect have the authority to buy?
• 3. Does the prospect have the desire to buy?
THE LEAKING BUCKET
CUSTOMER CONCEPT
• New customers come into the top and leave through a hole in the
bottom of the bucket. It is always easier to sell a satisfied customer
than an unsatisfied one or a prospect.

• The cost of acquiring a new customer is higher than keeping a

present customer. This is why service and follow-up after the sale
are so important to salespeople.
WHERE TO FIND PROSPECTS
• Sources of prospects can be many and varied or
few and similar, depending on the service or
good the salesperson sells.

• Naturally, persons selling different services and

goods might not use the same sources for
prospects.
PROSPECTING METHODS
1. E-Prospecting on the Web

• The most recent advancement in prospecting is the use of

the Internet to find potential buyers.

• This is called e-prospecting, and it is a fast and easy

way to find information about individuals or businesses by
using technology.
• 2. Cold Canvassing
• The cold canvass prospecting method is based on the law of
averages.

• For example, if past experience reveals that 1 person out of 10 will

buy a product, then 50 sales calls could result in five sales.

• This form of prospecting relies solely on the volume of cold calls

made. Salesperson contacts individuals who have not previously
expressed interest in the offered products or services
• 3. Endless Chain Customer Referral
• This is a very effective method for finding customers.
Customers and customer referrals are the two best
sources of future sales, with repeat sales from customers
being better.

• A referral is a person or organization recommended to

you by someone who feels that this person or
organization could benefit from you or your product.
Others Prospecting methods
• Sales lead clubs
• Prospect lists
• Networking
• Getting published
• Public exhibitions and demonstrations
• Center of influence
• Direct mail
• Telephone and telemarketing
• Observation
PROSPECTING GUIDELINES
• Three criteria you should use in developing the best
prospecting method require you to take these actions:

• 1. Customize or choose a prospecting method that fits the

specific needs of your individual firm. Do not copy another
company’s method; however, it’s all right to adapt someone’s
method.

• 2. Concentrate on high-potential customers first, leaving for

later prospects of lower potential.

• 3. Always call back on prospects who did not buy. With new
products, do not restrict yourself to present customers only.
The Prospect Pool
• Referrals come from prospects. Different sources of
prospects form the prospect pool.

• The prospect pool is a group of names gathered from

various sources. Your source, for example, may be a
mailing list, telephone book, referrals, orphans, or existing
customers.
THE REFERRAL CYCLE
• Obtaining referrals is a continuous process without
beginning or end. The salesperson is always looking for
the right opportunity to find a referral.