Chapter 12 Preparing for the Sale 1 Section 12.2 Preparing for the Sale Marketing Essentials

Chapter 12 Preparing for the Sale 2 SECTION 12.2 What You'll Learn  Sources for developing product information  Prospecting sources and methods  How leads are developed  Preparation for the sale in business-to-business selling and retail selling Preparing for the Sale

Chapter 12 Preparing for the Sale 3 SECTION 12.2 Preparing for the Sale Why It's Important As a salesperson, you will need to prepare for the sale by learning about the industry and the products you will be selling. In specific sales situations, you may also need to find customers. The tools and techniques for accomplishing these tasks are covered in this section.

Chapter 12 Preparing for the Sale 4 SECTION 12.2 Preparing for the Sale Key Terms  preapproach  prospect  referrals  endless chain method  cold canvassing

Chapter 12 Preparing for the Sale 5 SECTION 12.2 Preparing for the Sale The preapproach is getting ready for the face-to-face encounter in a selling situation. Salespeople do the following to prepare for the sale: The Preapproach  Study their products.  Keep informed of industry trends.  Research potential customers.  Develop familiarity with their company's policies and procedures.

Chapter 12 Preparing for the Sale 6 SECTION 12.2 Preparing for the Sale Product Information Product knowledge is essential for success in selling. The following are some of the ways salespeople find product information: 1.Direct experience—using the product 2.Written publications—manuals, warranties, catalogs 3.Other people—previous users, supervisors, manufacturer's representatives 4.Formal training

Chapter 12 Preparing for the Sale 7 SECTION 12.2 Preparing for the Sale Industry Trends Sales representatives read periodicals related to their trade to gain insight into the industry. All industries have trade publications related to their industry.

Chapter 12 Preparing for the Sale 8 SECTION 12.2 Preparing for the Sale Sources and Methods of Prospecting A prospect, or a lead, is a potential customer. There are seven main methods for developing prospects:  employer leads  telephone directories  trade and professional directories  newspapers  commercial lists  customer referrals  cold canvassing Slide 1 of 4

Chapter 12 Preparing for the Sale 9 SECTION 12.2 Preparing for the Sale Employer Leads Most businesses try to generate prospects but also rely on salespeople to find new customers. Sources and Methods of Prospecting Slide 2 of 4

Chapter 12 Preparing for the Sale 10 SECTION 12.2 Preparing for the Sale Telephone Directories The White Pages is a list of names and phone numbers of potential customers. The Yellow Pages can be useful for B2B prospecting. Sources and Methods of Prospecting Slide 2 of 4

Chapter 12 Preparing for the Sale 11 SECTION 12.2 Preparing for the Sale Trade and Professional Directories These can help B2B salespeople locate customers by industry. Sources and Methods of Prospecting Slide 3 of 4

Chapter 12 Preparing for the Sale 12 SECTION 12.2 Preparing for the Sale Newspapers Birth announcements provide leads for insurance salesmen. Notices of mergers and new businesses provide leads for B2B salespeople. Sources and Methods of Prospecting Slide 3 of 4

Chapter 12 Preparing for the Sale 13 SECTION 12.2 Preparing for the Sale Commercial Lists Some companies specialize in providing lists of potential customers categorized by education, income, etc. Sources and Methods of Prospecting Slide 3 of 4

Chapter 12 Preparing for the Sale 14 SECTION 12.2 Preparing for the Sale Customer Referrals Satisfied customers refer their friends and relatives. This is called the endless chain method. Sources and Methods of Prospecting Slide 4 of 4

Chapter 12 Preparing for the Sale 15 SECTION 12.2 Preparing for the Sale Cold Canvassing Potential customers are selected at random, such as by going door-to-door or through the phone book. Sources and Methods of Prospecting Slide 4 of 4

Chapter 12 Preparing for the Sale 16 SECTION 12.2 Preparing for the Sale If the sales call is with an existing customer, the salesperson analyzes past sales records and reviews notes about the customer's personality, family, and interests. Preparing for the Sale in Business-to-Business Selling Slide 1 of 2

Chapter 12 Preparing for the Sale 17 SECTION 12.2 Preparing for the Sale If the sales call is with a new customer, the salesperson must research answers to the following questions, usually through a phone call to the customer:  Does the prospect need this product or service?  Does the prospect have the financial resources to pay?  Does the prospect have the authority to buy? Preparing for the Sale in Business-to-Business Selling Slide 2 of 2

Chapter 12 Preparing for the Sale 18 SECTION 12.2 Preparing for the Sale Since the customer comes to you, retail preparation includes:  Straightening, rearranging, and replenishing the stock.  Adjusting price tickets before and after special sales.  Learning where stock is located and how much is available. Preparing for the Sale in Retail Selling Slide 1 of 2

Chapter 12 Preparing for the Sale 19 SECTION 12.2 Preparing for the Sale  Taking inventory.  Arranging displays.  Vacuuming the floor, dusting the shelves, and keeping the selling area neat and clean. These activities keep you familiar with the merchandise and makes it easier to find things for customers. Preparing for the Sale in Retail Selling Slide 2 of 2

Chapter 12 Preparing for the Sale A SSESSMENT Reviewing Key Terms and Concepts 1. What are four categories for sources of product information? 2. Why don't all businesses require salespeople to find prospects? 3. Name five sources of prospecting. 4. What is the difference between the endless chain method and cold canvassing as methods for prospecting? 5. What is the focus of the preapproach in retail sales?

Chapter 12 Preparing for the Sale A SSESSMENT Thinking Critically You have been asked to research a new prospect for your boss. Your research of this lead found that the company's owner is a 90-year old sole proprietor. The company is financially sound and pays its bills on time. The only concern is that there is no heir-apparent (someone to take over if the owner is no longer capable of running the business). Would you qualify this prospect as a worthy customer? Why or why not?

Chapter 12 Preparing for the Sale 22 End of Section 12.2 Marketing Essentials