Selling Today CHAPTER 8 DEVELOPING AND QUALIFYING A PROSPECT BASE 9TH EDITION Selling Today Manning and Reece CHAPTER 8 DEVELOPING AND QUALIFYING A PROSPECT BASE New photo rights (top 2) not cleared.

LEARNING OBJECTIVES-1 Discuss importance of developing a prospect base Identify and assess important sources of prospects Describe criteria for qualifying prospects Explain common methods of organizing prospect information

LEARNING OBJECTIVES-2 Name characteristics important to learn about customers as both individuals and business representatives Describe the steps in developing a prospecting and sales forecasting plan

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 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 familiar with product or service Endless chain –ask contact who else could benefit from product Friends, family members, centers of influence –a person may not make decision but has influence on those who do…opinion leaders

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

THOMAS REGISTER

APPLICATION: NINTENDO In late 2002, Nintendo added a unique web-based campaign to its list to announce new game. Involved six e-mails. 1. Tease: It’s coming soon 2. Arrival: It’s here 3. Survey: Have you played? 4. Site: Updated site available 5. Puzzle: Solve this one 6. Bidding Auction: Here’s add-on Normally list receives 1-2 monthly contacts. This worked because relevant info presented at each step. Photo rights CLEARED-SUNY-=New Paltz Not in text. Source clickz.com.

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 sales professionals need to read Join Trade Associations –many salespersons join trade associations to gain access to potential buyers

APPLICATION: TRADE SHOWS Thousands of manufacturers, buyers, and sellers attend the Consumer Electronics Show each year Working or attending such trade events provides great opportunities for prospecting, qualifying, referrals, networking, and actual sales Need photo from PH.

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 follow up

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

APPLICATION: DATABASES Purchasing databases or lists can be costly…price usually set on cost-per- thousand names Not all relevant databases are equal…some “pull” better than others Pull is the percentage of the list resulting in qualified prospects or actual sales Need photo from PH.

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 SALES FORECASTING 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.