1. CHAPTER 6 CHAPTER 6 Preparation Preparation

2. The Preparation Step … the first in a series of sequential actions that comprise the "science" of selling The way you apply these sequential actions is the "art" of selling … the first in a series of sequential actions that comprise the "science" of selling The way you apply these sequential actions is the "art" of selling

3. 2 6 Preparation The preparation step involves finding out:  Who the prospects are  What they need, and  Why they need or want it

4. I keep six honest serving men, They taught me all I knew, Their names are what and where and when, And how, and why and who Rudyard Kipling

5. 2 6 Answer These Six Questions Who are the people in the buying center? What roles do they play, in “what” products are they interested? Why do they want or need this product? How is the buying decision made? Where will the decision be made? When will it be made?

6. 2 6 Phases of Preparation Preapproach  The search for people and organizations that have a high likelihood of buying Prospecting  Identifying and qualifying the specific people who might have a want or need that the salesperson’s market offerings could satisfy

7. 2 6 The Preapproach The preapproach is a knowledge obtaining and assessment phase of the sales process Salespeople must possess considerable knowledge if they are to convert prospects into loyal customers

8. A Knowledge Management Framework for Salespeople The Customer Organization Personal The Environment The Sales Organization Product Price Sales support Competitive Position

9. 2 6 The Customer Customer Organizational Knowledge  Customer intelligence Customer Personal Knowledge  Hot buttons

10. 2 6 Areas of Customer Organizational Knowledge Key buying influences How prospects and customers use or can use products/services Customer buying cycles Necessary activities to maintain relationships with customers Customers’ technical evaluation criteria Customers’ growth plans Customers’ organizations, management structures, and lines of responsibility and authority Customers’ preferred suppliers Other suppliers with whom customers talk Degree to which customers like to be kept up-to-date Customers’ preferred communications channels What prospects generally are looking for  Refer to Table 6.1 – Areas of Customer Knowledge

11. 2 6 Personal Knowledge Information about the organization’s people is quite important  Ask about personal details  Know the buyers’ personal interests

12. 2 6 The Sales Organization Salespeople must be knowledgeable about their organization Product Personnel History Organization policies Credit terms Production methods Service Distribution Communication channels Prices Rebates and discounts Delivery Competitive position Sales support Refer to Table 6.2 –Areas of Knowledge About the Sales Organization

13. 2 6 The Competition Salespeople must be up-to-date on the competitive position their organization holds in the marketplace Salespeople can evaluate the strengths and weaknesses of their products in individual selling situations with knowledge of competitive offerings

14. Figure 6.2 Features-Benefits Inventory Form Product: ________________ Product FeaturesCustomer BenefitsCustomer Coding 1. 1a. 1b. 1c. Customer 1 Customer 2 Customer 3 2.2a.Customer 4 3.3a. 3b. Customer 1 Customer 4

15. 2 6 The Environment Competitive/prospect interface Government policy Existing and impending legislation Technology The economic situation Regulatory agencies The ecological impact products may have The global marketplace

16. 2 6 Essential Preapproach Background Information The prospect as an individual Personnel of the company Company operations Buying practices of the company Refer to Table 6.3 – Essential Preapproach Background Information

17. 2 6 How Much Time is Required to Prepare? Spend twice as much time preparing for each call as you would spend in the presence of a customer Preparation should be done on nonselling time “Pre-flight” your sales presentation  Professional practice helps build professional proficiency and agility

18. Presentation Structure Salespeople should view structure as a means of organizing knowledge in order to understand the individual prospect’s needs and be able to customize the presentation to fit the prospect’s situation

19. 2 6 The Importance of Prospecting With Existing Customers Existing customers can switch suppliers if current service is not up to par Existing customers are being called on by competitive salespeople who are always presenting new information It is much less expensive to call on existing customers than to find new ones Existing clients are often the best source of new customers

20. 2 6 Developing Prospects The best time for salespeople to develop prospects is when they do not need them Salespeople should develop the habit of evaluating everyone they know or meet as a potential prospect or suspect

21. Someone the salesperson has not yet qualified. Someone who has met the minimum criteria of money, authority and desire to buy, but has not yet purchased. Someone who has purchased before. Someone with whom the salesperson has a partnership. Figure 6.3 Classification of Potential and Current Customers SUSPECT CUSTOMERPROSPECTCLIENT

22. 2 6 Steps in the Prospecting Stage Identification Qualification

23. 2 6 Market Segmentation Market segmentation is the division of a market into groupings of customers with similar wants  Geographic territory

24. 2 6 Specialization Within a geographic boundary, the salesperson's territory may be further subdivided  Customer type Defined in terms of customer characteristics  Product line Defined by the product or service sold

25. 2 6 Developing a Lead Generation Program Market segmentation Lead generation  Direct-mail  Telephone selling  Personal visits  A computerized lead generation package  Call report program

26. 2 6 Prospecting Techniques Three Categories 1.Internal sources of prospects 2.Prospects found by market intelligence 3.Prospects generated by specific actions

27. 2 6 Internal Sources of Prospects Sales records Organizational promotional activities Referrals Walk-ins Inquiries

28. 2 6 Identifying Prospects Through Market Intelligence Lists Crisscross directory News media Government sources Observation Computerized databases SIC numbers

29. 2 6 Major Search Engines Google http://www.google.com http://www.google.com AllTheWeb.com (FAST) http://www.alltheweb.com http://www.alltheweb.com Yahoo http://www.yahoo.com http://www.yahoo.com MSN Search http://search.msn.com http://search.msn.com AOL Search http://aolsearch.aol.com (internal) http://search.aol.com/ (external) http://aolsearch.aol.com http://search.aol.com/ Ask Jeeves http://www.askjeeves.com http://www.askjeeves.com HotBot http://www.hotbot.com http://www.hotbot.com Lycos http://www.lycos.com http://www.lycos.com Teoma http://www.teoma.com http://www.teoma.com Inktomi http://www.inktomi.com http://www.inktomi.com LookSmart http://www.looksmart.com http://www.looksmart.com Open Directory http://dmoz.org/ http://dmoz.org/ AltaVista http://www.altavista.com http://www.altavista.com Netscape Search http://search.netscape.com http://search.netscape.com WiseNut http://www.wisenut.com http://www.wisenut.com Click on each link to go to the web site.

30. Online Resources ABI/INFORM® Click on each logo to go to the web site.

31. 2 6 Identifying Prospects by Specific Actions Letter with a follow-up phone call Referrals Bird dogs Cold calls Networking Incentives Other sales professionals Trade shows Educational forums

32. 2 6 Turning Suspects Into Bona Fide Prospects Identify MAD Customers  M oney to Buy  A uthority to Buy  D esire to Buy

33. 2 6 Nature and Importance of Qualification The nature of the qualifying task is different for various types of personal selling Salespeople must be resourceful and should devote time and effort to the search and qualification phase

34. 2 6 Prospecting Effectively Systematize prospecting Set prospecting objectives Follow through Look for new sources of prospects Evaluate prospecting activities

35. 2 6 Maintaining Contact with Customers Salespeople should maintain personal contact by occasionally:  Writing a letter or brief note  Making a telephone call  Sending a fax or e-mail Such simple gestures can generate business for the salesperson

36. 2 6 Prospecting Steps Differ According to Types of Selling Responsive Selling Trade Selling Missionary Selling Technical Selling New-Business Selling

37. 2 6 Responsive Selling Takes place on the seller’s premises, in response to buyer-initiated contact  Retailing to consumers  The inside order desk The salesperson qualifies purchasers from searchers in terms of type and amount of product desired  Already in the search stage

38. 2 6 Trade Selling Takes place on the buyer’s rather than the seller’s premises  Wholesaler and retailer contact The salesperson usually sells to all members of the buying center  Already in the search stage

39. 2 6 Missionary Selling The salesperson does not attempt to close a sale but to gain a commitment from the authorizer or influencer Sells to all members of the buying center except for the end-user or consumer  May be in any stage of the buying process

40. 2 6 Technical Selling Involves marketing fairly complex and sophisticated products to organization buyers More than one individual is almost always involved  Any individual involved may be in any stage in the buying process

41. 2 6 New-Business Selling Deals mostly with new customers The salesperson identifies and qualifies a large pool of potential prospects  Many will not be converted to the next stage in the buying process

42. Successful salespeople know that the best prospects are satisfied customers