380 Personal Selling

Transcription

1 1 Personal Selling Prospecting and Qualifying Session 2 Chapter Four Prospecting & Qualifying 3 4 Learning Objectives After reading this chapter, you should understand: The steps in the personal selling process. The importance of prospecting. 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: Chapter Review Question: 1. Prospecting and qualifying prospects Identify and describe the seven basic 2. Planning the sales call (the preapproach) stages in the selling process. 3. Approaching the prospect 4. Making the sales presentation and demonstration 5. Negotiating prospect resistance and objections 6. Confirming and closing the sale 7. Following up and servicing the account Royalty-Free/CORBIS 5 6 Figure 4.1: The Personal Selling Process (PSP) The Importance of Prospecting Prospecting, the initial stage, is necessary for several reasons: Royalty-Free, Photodisc/Getty Images Need to increase total sales. Customers switch to other suppliers. Customers businesses are taken over by another company. Customers have only a one-time need for the product. 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. Customers move out of your territory. Customers go out of business. Customers die. Page 103 Give some basic reasons for planning sales calls. 1

2 7 8 Prospecting for Leads Prospecting for Leads Effort Lead Two basic ways to search for leads to qualify as prospects are: 1. Random 2. Selective Random Lead Prospecting Methods Selective Selective lead searching can also be classified as non-effort or effort. Non-effort leads are leads that are supplied by the company or from an individual s voluntary inquiry or response to advertising. An effort lead is one that is generated solely by the salesperson. Pages Non-Effort Lead 9 10 Table 4.1 Looking for Leads Table 4.1 Looking for Leads cont d Random-Lead Random-Lead cont d Sometimes called "blind" searching, generates leads by randomly calling on businesses. Examples of random-lead searching include: 1. Door-to-door canvassing and cold calls Door-to-door canvassing refers to knocking on doors in a commercial area without an appointment to locate prospects. Cold calling refers to approaching or calling a business without an appointment for the purpose of prospecting or selling. 2. Territory blitz of organizations A territory blitz refers to an intensified version of door-to-door canvassing in which several salespeople join efforts to call on every organization in a given territory or area. 3. Advertising Using broadcast or print media. 4. Electronic mail and websites Sending s and using websites to look for leads. 2

3 13 Selective-Lead : Direct Sources This refers to systematic strategies to generate leads from predetermined target markets. Friends, neighbors, and acquaintances Satisfied customers and former customers Junior salespeople and sales associates Professional sales organizations Mailing lists and directories Personal observation Centers of influence Spotters Endless chain Networking Internet ( s) Company records Newsletters Surveys What is the centers-of-influence approach to finding potential customers? Why is the centers-ofinfluence approach the preferred method for seeking leads among professionals such as doctors, lawyers, insurance agents, financial advisers, and accountants? 14 Table 4.2 Selected Internet Sources of Information For Prospecting Royalty-Free/CORBIS Internet Sources For Prospecting To find information on industrial activity, go to: - To find data on over 10,000 corporations, go to : - asp Sources Selective-Lead : Indirect General announcements or calls to potential markets, hoping that prospects will come forward and identify themselves. Examples of indirect sources of selective-lead searching include: 1. Direct mail: When preparing a direct mail piece, follow these guidelines: Address your letter to an individual Use an attractive format Keep it simple Stress benefits Provide proof Ask for action Follow up your mailing Keep records of mailing results Royalty-Free, Photodisc/Getty Images Sources Selective-Lead : Indirect Marketing Information Systems 1. Trade shows, fairs, and exhibits 2. Professional seminars, workshops, and videoconferences 3. Contests 4. Free gifts 5. Unsolicited inquiries 6. Telemarketing for proposals Chapter Review Question: Distinguish between random searching and selective searching for leads. Give some examples of each. An organization s MIS is a systematized, continuous process of gathering, sorting, analyzing, evaluating, and distributing market information that can be useful in prospecting and obtaining leads. What is a marketing information system (MIS) and how can it help manage leads? 3

4 19 20 Customer Relationship Management Customer Relationship Management con't A business strategy designed to augment revenues and increase profitability of companies through better understanding of customers needs and behaviors Uses sophisticated computer systems to help identify prospects and put customers at the center of a company s business activities and decision-making processes Brings together diverse information (compiled from data sources within and outside the organization) about customers, sales, and marketing to develop a more holistic view of each customer CRM provides precise computerized information about individual customers to help company employees (sales, customer service, and marketing representatives) Develop target marketing strategies Create up-selling and cross-selling opportunities Use successful competitive positioning tactics Assist customers in making fully satisfying purchases that lead to long-term customer loyalty Define customer relationship management and discuss how it be used to manage relationships with customers Data Mining Systems Sales and Marketing Executives Marketing Library A procedure that uses statistical software to mine volumes of data to identify hidden interrelationships among buyers and the products they purchase, along with associated complementary products Can be used to identify leads, prospects, and buying patterns Used by diverse firms such as Harrah s Entertainment and Wal-Mart Describe data mining. Royalty-Free, Photodisc/Getty Images For prospecting or any other stage in the PSP, Sales and Marketing Executives Marketing Library is an outstanding source of information and help for salespeople. The library offers: Royalty-Free, Stockdisc/Getty Images More than 200,000 searchable articles on sales and marketing Discussions by top marketing/sales leaders about their latest strategies and ideas Access to the world s first knowledge base in sales and marketing. Company and industry profiles The latest compensation data for salespeople, sales managers, and marketing managers, plus much more The Prospecting Plan Figure 4.2 Prospecting Methods To maximize prospecting activities, salespeople must develop and execute a comprehensive prospecting plan, which has several steps: 1. Set objectives for prospecting 2. Allocate time for prospecting 3. Become familiar with prospecting techniques 4. Choose one or more prospecting techniques 5. Systematize the prospecting plan 6. Evaluate the results (use Prospecting Methods Evaluation Form) Describe the different elements of a prospecting plan. 4

5 25 Prospects: The Salesperson's Pot of Gold Without prospects, the personal selling process can t begin Prospects are essential to the continuing health of any sales organization An old maxim for salespeople is Apply your ABP s, i.e., Always Be Prospecting 26 Need Authority To Buy Money To Buy Qualifying: How a Lead Becomes a Prospect Qualifying Criteria Accessibility Profitability Eligibility To Buy Qualifying: How a Lead Becomes a Prospect con't A lead points to a potential buyer Salespeople must qualify a lead in terms of 4 basic criteria that can be remembered by the acronym NAME, as follows: 1. Need or want 2. Authority to buy 3. Money or ability to buy 4. Eligibility to buy What four criteria determine whether a lead becomes a prospect? Two other qualifying criteria are: 1. The accessibility of the individual 2. The potential profitability of the prospect over the long run Prospect to consumer Watch skilled salespeople at work and you soon realize that while selling is an art that can be approached in a variety of ways, it boils down to four basic steps: open ask for needs demonstrate close

6 Personal Selling Process (PSP) Also known as the seven-stage process of professional personal selling, from prospecting and qualifying prospects to following up and servicing customers. Prospecting The process of searching for leads people and organizations that might need your product and then qualifying them as prospects or potential customers. Random-Lead Generation of leads by randomly calling on organizations. Sometimes called "blind" searching. Lead Anything a name, address, or telephone number that points to a potential buyer. Prospect A lead that has been qualified as a definite potential buyer. 35 Selective-Lead Application of systematic strategies to generate leads from predetermined target markets. Door-to-Door Canvassing Knocking on doors in a commercial area without an appointment to locate prospects. Cold Calling Approaching or calling a business without an appointment for the purpose of prospecting or selling. NAME An abbreviation for the process of qualifying a lead in terms of need for the product, authority to buy, money to buy, and overall eligibility to buy 36 Territory Blitz An intensified version of door-to-door canvassing in which several salespeople join efforts to call on every organization in a given territory or area. Spotters People who work in jobs where they meet many other people and who can help salespeople obtain business leads. Also called "bird dogs." Endless Chain A classic method of prospecting in which the salesperson simply asks recent prospects for further prospect referrals. Networking Meeting others in social or business settings to talk informally, establish rapport, and build relationships with people who can be contacted later for referrals or as potential prospects. 6

7 37 38 Centers of Influence Individuals or groups of people whose opinions, professional activities, and lifestyles are respected among people in the salesperson's target markets. Marketing Information System (MIS) Any systematized, continuous process of gathering, sorting, analyzing, evaluating, and distributing market information. Can be helpful to salespeople in obtaining leads and prospects. An MIS can be particularly helpful to salespeople in obtaining new leads and prospects. Customer Relationship Management A business strategy designed to augment revenues and increase the profitability of companies by better understanding their customers needs and buying behaviors and, in that process, developing a stronger relationship with their customers. Data Mining A procedure that uses statistical software to mine volumes of data to identify hidden interrelationships among buyers and the products they purchase, along with associated complementary products Chapter Review Questions Video - Pitching to the Dragons 1. How can internal company records, such as warranty cards, be of value in developing lists of prospects? 2. Describe the survey approach to generating leads. Take note of the Dragon s Den Presentation Tips These tips and your understanding of them will form the bulk of your mid-term exam. 7