1. 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
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2. 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

3. 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

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

5. 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

6. GIRARD’S FERRIS WHEEL—SUPPLY
REFERRALS
FRIENDS
DIRECTORIES
TRADE SHOWS
WEBSITES/DATABASES
COLD CALLING
NETWORKING P P P P
See Figure 8.1

7. 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

8. 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”

9. 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

10. 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

11. THOMAS REGISTER

12. APPLICATION: NINTENDO
In late 2002, Nintendo added a unique web-based campaign to its list to announce new game. Involved six s.
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.
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Not in text. Source clickz.com.

13. 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

14. 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.

15. 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

16. 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

17. 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 lists

18. 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

19. 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.

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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?

26. ORGANIZING PROSPECT INFORMATION
PROSPECT AS INDIVIDUAL
PROSPECT AS BUSINESS REPRESENTATIVE

27. 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.