Learning Objectives After reading this chapter, you should understand: 2 The steps in the personal selling process. The importance of prospecting. How to qualify leads as prospects. How to qualify leads as prospects. Several prospecting methods. The steps in developing a prospecting plan.

Stages In the Personal Selling Process The professional selling process is a continuous, interacting, and overlapping cycle of seven stages: Prospecting and qualifying prospects Planning the sales call (the preapproach) Approaching the prospect Making the sales presentation and demonstration Negotiating prospect resistance and objections Confirming and closing the sale Following up and servicing the account

Why Buyers Won’t See Salespeople 1.They may have never heard of the salesperson’s firm. 2.They may have no need; they just bought the product category. 3.The buyer may have their own deadlines on other issues. 4.Buyers are constantly getting calls from salespeople and do not have the time to see them all. 5.Gatekeepers in any organization screen their bosses’ calls and are often curt and even rude.

Prospecting The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the salesperson’s market offering of products and services. Qualified Prospects Sales Leads Screening Procedures for Qualifying Leads

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Establish daily, weekly and monthly quotas for acquiring new prospects

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Establish a regular daily schedule for conducting prospecting activities. Allocate Time

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Track your results from using the different prospecting methods. Keep Records Allocate Time

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Evaluate What is working for you? Compare results and use the methods that work best for you. Keep Records Allocate Time

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Evaluate Develop confidence by knowing your products and believing that you offer the best solutions. Keep Records Allocate Time Stay Positive

The Importance of Prospecting Prospecting, the initial stage, is necessary for several reasons: Need to increase total sales.Need to increase total sales. Customers switch to other suppliers.Customers switch to other suppliers. Customers’ businesses are taken over by another company.Customers’ businesses are taken over by another company. Customers have only a one-time need for the product.Customers have only a one-time need for the product. Relationships with some customers deteriorate, and they stop buying from you.Relationships with some customers deteriorate, and they stop buying from you. Your buying contacts are promoted, demoted, transferred, or fired, or they retire or resign.Your buying contacts are promoted, demoted, transferred, or fired, or they retire or resign. Customers move out of your territory.Customers move out of your territory. Customers go out of business.Customers go out of business. Customers die.Customers die.

Importance of Effective Prospecting One Customer 100 Leads Many Leads Few Qualified Prospects Many Qualified Prospects Few Customers Suppose it takes 10 leads to generate one qualified prospect And suppose it takes 10 qualified prospects to generate one customer It will take 100 leads to generate one customer

Importance of Effective Prospecting One Customer 50 Leads The better the lead generation method, the higher the proportion of qualified leads. The more accurate the qualifying process, the higher the proportion of customers per qualified lead.

Qualifying the Prospect Moving from a “lead”, to a qualified prospect Lead - is just a name Prospect - researched for money, and authority, and desire. Qualified prospect - evaluated prospect along with personal information

Cultivate prospects who pass the MAD test : oney uthority esire

Sources or Methods of Prospecting Why we lose customers Customer’s company goes out of business Competitor takes your customer Customer moves or dies Merger or downsizing Customer-salesperson relationship deteriorates Referrals Have person make the initial contact for you Learn how to ask for a referral! Why people don’t give referrals Referrals tend to be horizontal

Centers of Influence – Believes in you and what you are selling – Is influential with a significant number of people – Is willing to give you names on a regular basis – The names given to you are at least partially qualified prospects Group Prospecting – Follow up with interested prospects – Trade shows, speaking engagements Methods of Prospecting

Planned Cold Calling – At least one out of seven will be receptive – Treat cold calls as a supplement. Don’t neglect other techniques – Preplan cold calls – Limit waiting - 15 minutes is a good gauge! – Remain enthusiastic Methods of Prospecting

Direct mail or fax – Prospects do read well-targeted direct mail – Mailing is only as good as the list – Sources of lists to consider: Membership rosters City directories Yellow pages White pages Religious groups Past customers – Create your own newsletter Methods of Prospecting

Joining Civic Groups – Carefully select the groups you join – Work for positive visibility – Set contact goals for each organization meeting – Maintain an information file on the contacts made in each organization – Use “remeet” goals to help you develop closer relationships with people – Use active listening to learn more about the financial goals and needs of others – Look for appropriate opportunities for further business-oriented discussions Methods of Prospecting

Networking - active cooperation, i.e. ‘tips’ – There are formal groups that you can join – Sharing information makes good sense Using Directories - Goldmines if used correctly Moody’s Industrial Manual Poor’s Register of Directors and Executives The Dun and Bradstreet Reference Book The Thomas Register of American Manufacturers Contacts Influential Methods of Prospecting

Company Initiated Prospecting – Telemarketing Activities – Advertising Response Direct Mail Newspaper Past Customers Go over list of inactive accounts Develop and create a Web site Streamline the sales process Affiliate program marketing Turn web leads into online sales Methods of Prospecting

Trade Shows Methods of Prospecting Selecting the right trade show is criticalSelecting the right trade show is critical On the spot sale versus lead generationOn the spot sale versus lead generation Pre-show training and post-show follow-upPre-show training and post-show follow-up Display planning to get high visibilityDisplay planning to get high visibility Staffing the booth to handle informationStaffing the booth to handle information

E-prospecting Methods of Prospecting Sales leads cting+sales+leads cting+sales+leads snowboarding trade magazine html html

Qualified Prospects... Can benefit from the sales offering Can benefit from the sales offering Have the financial wherewithal to make the purchase Have the financial wherewithal to make the purchase Play an important role in the purchase decision process Play an important role in the purchase decision process Are eligible to buy based on a fit within the selling strategy Are eligible to buy based on a fit within the selling strategy Are reasonably accessible and willing to consider the sales offering Are reasonably accessible and willing to consider the sales offering Can be added to the customer base at an acceptable level of profitability Can be added to the customer base at an acceptable level of profitability

ALWAYS IMPORTANT TO CONVERT LEAD TO A QUALIFIED PROSPECT

Handling Objections 2 Types of Objections – Misunderstanding – Valid Objection An objection is simply a request for more information. – Do not be afraid of the objection!

Valid Objections A valid objection is triggered by fear of making a wrong decision – Typically the last step in the buying process – Welcome them as a sign that they are getting ready to decide to move forward.

Handling Objections Common Objections – “Not enough time” – “Don’t have any money” – “I want to think about this” – “I need to talk this over with my spouse”

Objections People will always have concerns before they buy product or enroll. Concerns vary from person to person – “I don’t like to sell” – “I don’t have enough time”

Welcome Objections Objections are way for a prospect to express their desires Turn an objection into a objective – Restate, in a question form, the objection in the form of an objective.

Objection/Objective Example “It takes too long to get the product” “So, our objective is to get you the products when you want them, correct?”

Objection/Objective Example “Your prices are too high.” “So, you want to get proper value for your money, right?”

Objection/Objective Example “I don’t have enough time” “So, you want to make sure your time is used wisely, in a way that you get the best return on investment of your time, correct?”

Objection/Objective Example “I don’t want to sell to my family and friends.” “So, you want to maintain your relationships, correct?” “Yes” “If you commit today, we can make sure you learn how to maintain your relationships and build a business that enhances the relationships. That’s reasonable isn’t it?”

Objection/Objective Example “Is this a pyramid scheme?” “So, your concern is that you are doing something that is legitimate and lawful, correct?” “Yes” “Do you know what a pyramid scheme is?”..and carry on..

We believe that objections are requests for more information. Encourage objections, especially the hidden or unspoken ones A person will not buy or enroll until the his concerns are satisfactorily handled.

If a person doesn’t buy or enroll then ask: “Is there anything else that concerns you?” “What else may be stopping you from moving ahead?”

Handling Objections 1.Listen to the objection. 2.Clarify it: “ As I understand, you do like the marketing plan and you think the products are great, so it ’ s the money that would keep you from starting right now? ” 3.Identify with them: “ I know how you feel …” 4.Never argue 5.Explain your answer 6.Verify you cleared every objection thoroughly. “ Does this answer your question? ” or “ Does this take care of it? ” 7.Close

Handling Objections Communication is 55% body language – LISTEN! Your prospect believes he is right. Understand his point of view so you can overcome objection. – PROVIDE PROOF! Deliver strong proof in a way that does not discredit the prospect in the process – Tell a story – offer testimonial – do a demo – use data, ie average incomes.

Close Close Quickly Confirm their pain and the intensity Review benefits – Freedom – work less-earn more – save pictures forever Primitive brain remembers beginning and end. Ask for feedback. – What do you think?

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