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Relationship selling through service mkt 173 chap 6


Prospecting—The Lifeblood of
Selling

McGraw-Hill/Irwin

Copyright © 2007 by The McGraw-Hill Companies, Inc. All

Chapter

6


6-3

Chapter

6


Main Topics







6-4

The Tree of Business Life: Prospecting
The Sales Process Has 10 Steps
Steps Before the Sales Presentation
Prospecting—The Lifeblood of Selling
Where to Find Prospects
Planning a Prospecting Strategy

Chapter

6


Main Topics






6-5

Prospecting Methods
Prospecting Guidelines
The Referral Cycle
Call Reluctance Costs You Money!
Obtaining the Sales Interview
Wireless E-mail Helps You Keep in Contact and
Prospect

Chapter

6




The Tree of Business Life: Prospecting

True

Et
h ic

al

ce
rvi
Se

T
T T
T T TT
T T T T
Builds

I

 People buy from those they know




Relationships

T

Guided by The Golden
Rule,
Rule remember:

C



and trust.
Prospecting is not easy unless you
focus on helping, not selling.
People who trust you give
referrals.
Referrals take the burden of
prospecting off the salesperson.
Referrals are earned through
integrity, trust, and character.


Exhibit 6-1: The Selling Process Has
10 Important Steps
The sales process
is a sequential
series of actions

1. Prospecting

2. Pre-approach/planning
3. Approach
4. Presentation
5. Trial close
6. Determine objections
7. Meet objections
8. Trial close
9. Close
10. Follow-up


Exhibit 6-2: Before the Sales Presentation


Steps Before the Sales Presentation
 Prospecting  Appointment  Planning
 Rule of thumb:

 40% preparation
 20% presentation
 40% follow-up


Prospecting–The Lifeblood of Selling
 Prospecting – identifies potential customer
 Lead – name of a person or organization (also
referred to as a suspect)

 Prospect – qualified person or organization


Prospecting — The Lifeblood of Selling
 Prospecting – identifies potential customers
 Lead – might be a prospect
 Prospect – qualified person
 Is prospect MAD? Does he or she have:
Q1. Money to buy?
Q2. Authority to buy?
Q3. Desire to buy?

…Then, prospect is Qualified


The Prospector Has the Most Challenging
Sales Career
 This is the “order getter” who:

 Finds a lead
 Converts the lead into a prospect
 Sells one day, and
 Sells in the future too
 WOW! That is a challenge.


Some Prospect, Some Do Not
 Many salespeople prospect: both those selling


business-to-business and those selling to
consumers.
Examples are:

 Financial services, such as life insurance
 Real estate


Some Prospect, Some Do Not, cont…
 Many organizations do not prospect.
 Examples are large consumer goods firms as
General Mills* and Colgate*.

* products and associated images used for illustrative purposes only


Compensation for the Salesperson that
Prospects is Often:
 Based upon 100% commission – if you do not sell,
you do not earn.


Compensation for the Salesperson that
Does Not Prospect is Often:
 Based upon mostly salary with a small bonus and


expenses such as car and office supplies paid
If you do not sell you still get paid…but not for
very long.


Where to Find Prospects
 Sources may be varied or few.
 Persons selling different services and goods
might not use the same sources.


Planning a Prospecting Strategy
 Prospecting requires a strategy.
 It is a skill that can be constantly improved


Exhibit 6-4: Prospecting Methods that
Work!


Prospecting Methods
 E-prospecting on the Web

 Individuals
 Organizations
 (1)Cold Canvassing – law of averages
 (2)Endless Chain – customer referral

 Customers and customer referrals best
sources of future sales

 (3)Orphaned Customers
 (4)Sales Lead Clubs


Prospecting Methods, cont…









Prospect Lists – trade pubs, list-selling firms
Become an Expert – get published
(5)Public Exhibitions and Demonstrations
(6)Center of Influence
Direct Mail
(7)Telephone and Telemarketing
Observation
(8)Networking (center-of-influence people)


Exhibit 6-5: The Processing System Within
a Telemarketing Center


Exhibit 6-6: Reports From a Telemarketing Center to
Other Marketing Groups Within the Firm


Prospecting Guidelines
 Three criteria are:

1.Customize to fit each prospect’s needs
2.Concentrate on high potential customers
3.Call back on no-buys
1. Always keep knocking on prospects’
and customers’ doors to help them.


Referrals Are Used in Most Prospecting
Methods
 Eight of the twelve popular prospecting
methods directly ask for referrals.
 Referrals can be directly used in:
 Cold canvassing
 Endless chain customer referrals
 Orphaned customers
 Sales lead clubs
 Public exhibitions and demonstrations
 Center of influence
 Telephone
 Networking


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