Professional Documents
Culture Documents
Chapter Outline
Stages in the personal selling process The importance of prospecting Prospecting for leads The prospecting plan Prospects: the salesperson's pot of gold Qualifying: how a lead becomes a prospect
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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.
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1. Prospecting and qualifying prospects 2. Planning the sales call (the preapproach) 3. Approaching the prospect
Identify and describe the seven basic stages in the selling process.
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
Copyright Houghton Mifflin Company. All rights reserved. Chapter 4 | Slide 4
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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.
Chapter Review Question: Give some basic reasons for planning sales calls.
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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 individuals voluntary inquiry or response to advertising. An effort lead is one that is generated solely by the salesperson.
Copyright Houghton Mifflin Company. All rights reserved. Chapter 4 | Slide 7
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Random-Lead Searching
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.
Copyright Houghton Mifflin Company. All rights reserved. Chapter 4 | Slide 10
3. Advertising Using broadcast or print media. 4. Electronic mail and websites Sending emails and using websites to look for leads.
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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 Chapter Review Question: Endless chain What is the centers-of-influence Networking approach to finding potential Internet (e-mails) customers? Why is the centers-ofCompany records influence approach the preferred method for seeking leads among Newsletters professionals such as doctors, Surveys lawyers, insurance agents, financial
advisers, and accountants?
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http://www.moodys.com/cust/default .asp
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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.
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An organizations MIS is a systematized, continuous process of gathering, sorting, analyzing, evaluating, and distributing market information that can be useful in prospecting and obtaining leads.
Chapter Review Question: What is a marketing information system (MIS) and how can it help manage leads?
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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
Chapter Review Question: Define customer relationship management and discuss how it be used to manage relationships with customers.
Copyright Houghton Mifflin Company. All rights reserved. Chapter 4 | Slide 19
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 Harrahs Entertainment and Wal-Mart
Chapter Review Question: Describe data mining.
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Key Terms
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 leadspeople and organizations that might need your product and then qualifying them as prospects or potential customers. Random-Lead Searching Generation of leads by randomly calling on organizations. Sometimes called "blind" searching . Selective-Lead Searching 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.
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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.
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Customer Relationship Management A business strategy designed to augment revenues and increase the profitability of companies by better understanding their customers needs and buying behaviorsand, in that process, developing a stronger relationship with their customers.
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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
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Internet Exercises
1. Assume that you work as a sales representative of a Fortune 100 pharmaceutical company that manufactures various drugs for the treatment of heart disease. Use the appropriate Internet websites identified in Table 4.2 and conduct a web-based search to locate the following leads in your zip code and/or county: Cardiovascular physicians at hospitals who perform heart surgery and prescribe drugs for the heart Doctors associated with an HMO who prescribe drugs for preventing heart disease Doctors associated with a private practice who prescribe drugs for preventing heart disease
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1. Develop a direct-mail or e-mail letter to send to generate business prospects for a new video cell phone for salespeople to take on sales calls. In your prospecting letter, be sure to specify the benefits the cell phone will offer the company, translate them into financial terms, provide proof of those benefits, request specific action, and supply an incentive to act promptly.
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