1. 9 TH EDITION CHAPTER 8 DEVELOPING AND QUALIFYING A PROSPECT BASE Manning and Reece

2. 8-2 PROSPECT AND PROSPECTING DEFINED PROSPECT—A potential customer that meets the qualification criteria established by your company PROSPECTING—Identifying potential customers

3. 8-3 IMPORTANCE OF PROSPECTING Every salesperson must cope with customer attrition 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

4. See Figure 8.18-4 GIRARD’S FERRIS WHEEL—SUPPLY P P P P P REFERRALSFRIENDSDIRECTORIES TRADE SHOWS WEBSITES/DATABASES COLD CALLING NETWORKING

5. See Figure 8.18-5 GIRARD’S FERRIS WHEEL—LOSS P P P P P RELATIONSHIP FAILS BUSINESS FAILS BUYS FROM ANOTHER MERGER/ACQUIRED CUSTOMER MOVES DEATH OF CUSTOMER ONE TIME PURCHASER TECH CAUSES CHANGE

6. 8-6 PROSPECTING REQUIRES PLANNING INCREASE NUMBER OF PEOPLE WHO BOARD FERRIS WHEEL INCREASE NUMBER OF PEOPLE WHO BOARD FERRIS WHEEL IMPROVE THE QUALITY OF PROSPECTS IMPROVE THE QUALITY OF PROSPECTS SHORTEN SALES CYCLE BY DETERMINING WHICH PROSPECTS ARE “QUALIFIED” SHORTEN SALES CYCLE BY DETERMINING WHICH PROSPECTS ARE “QUALIFIED”

7. 8-7 REFERRALS Prospect recommended –by current satisfied customer or one __________________________________ Prospect recommended –by current satisfied customer or one __________________________________ Endless chain –ask contact who else could _______________________ Endless chain –ask contact who else could _______________________ Friends, family members, centers of influence –a person may not make decision but has influence on those who do…_____________________ Friends, family members, centers of influence –a person may not make decision but has influence on those who do…_____________________

8. 8-8 DIRECTORIES/LISTS Hundreds of business and industrial directories available Hundreds of business and industrial directories available Each major trade association usually publishes directory Each major trade association usually publishes directory Be sure to use current copy or edition as prospects shift firms…track people and companies Be sure to use current copy or edition as prospects shift firms…track people and companies

9. 8-9 TRADE SHOWS/PUBLICATIONS Trade shows and conventions – your company may have a booth at key trade shows/expositions Trade shows and conventions – your company may have a booth at key trade shows/expositions Trade publications–each industry has trade publications that ______________________________ Trade publications–each industry has trade publications that ______________________________ Join Trade Associations –many salespersons join trade associations to ______________________________ Join Trade Associations –many salespersons join trade associations to ______________________________

10. 8-10 TELEMARKETING Telemarketing – employs phone outreach to accomplish many objectives 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

11. 8-11 DIRECT RESPONSE Direct response advertising-often features inquiry cards or information requests via mail or telephone Direct response advertising-often features inquiry cards or information requests via mail or telephone Sales Letters—send sales letters to decision makers, then __________ Sales Letters—send sales letters to decision makers, then __________

12. 8-12 WEBSITE Websites –provide cost-effective way for sales professionals to 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

13. 8-13 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 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 sources—wide range of precise lists available from variety of sources --list brokerage firms, associations, governmental records, related but not directly competitive businesses

14. 8-14 COLD CALLING Simply calling prospects without referrals 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

15. 8-15 NETWORKING Making and profiting from personal connections Making and profiting from personal connections Networking guidelines 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

16. 8-16 EDUCATIONAL SEMINARS Provides opportunity to showcase product without pressuring to buy Provides opportunity to showcase product without pressuring to buy Requires extensive preparation Requires extensive preparation Starts value-added process Starts value-added process Can attend or present at industry- sponsored seminars or offer your own Can attend or present at industry- sponsored seminars or offer your own

17. 8-17 NON-SALES EMPLOYEES Non-sales personnel can be valued source of leads Non-sales personnel can be valued source of leads Prospecting not necessarily exclusive task of sales force Prospecting not necessarily exclusive task of sales force Non-sales personnel often need training and incentives Non-sales personnel often need training and incentives

18. 8-18 COMBINATION APPROACHES Salespersons generally rely on combination of prospecting methods Salespersons generally rely on combination of prospecting methods Some methods have higher yield than others Some methods have higher yield than others Important to use CRM technology to help maximize efficiency Important to use CRM technology to help maximize efficiency

19. 8-19 QUALIFYING PROSPECTS KEY TIME-SAVING PROCESS KEY TIME-SAVING PROCESS 1.Does prospect need my product? 2.Can prospect make buying decision? 3.Can prospect pay for purchase? 4.Can anyone close sale? Is sale realistically possible?

20. 8-20 ORGANIZING PROSPECT INFORMATION PROSPECT AS INDIVIDUAL PROSPECT AS BUSINESS REPRESENTATIVE

21. Last slide Chapter 8.8-21 PROSPECTING AND SALES FORECASTING PLANS IMPORTANT TO BALANCE TIME AND ORGANIZE CONTACTS IMPORTANT TO BALANCE TIME AND ORGANIZE CONTACTS 1.Prepare a list of prospects 2.Forecast potential sales volume for each new account, by product 3.Carefully plan the sales route to minimize time and cost