Fundamentals of Selling

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ProspectingThe Lifeblood of Selling
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Chapter
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Main Topics
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Chapter

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

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Main Topics
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Chapter

• 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

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The Tree of Business Life Prospecting

• Guided by The Golden Rule, remember
• People buy from those they know 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

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Service
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Builds
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Relationships
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Exhibit 7-1 The Selling Process Has 10
Important Steps
1. Prospecting
The sales process is a sequential series of
actions
2. Preapproach/planning
3. Approach
4. Presentation
5. Trial close
6. Determine objections
7. Meet objections
8. Trial close
9. Close
10. Follow-up
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Steps Before the Sales Presentation

• Prospecting gt appointment gt planning
• Rule of thumb
• 40 preparation
• 20 presentation
• 40 follow-up

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Exhibit 7-2 Before the Sales Presentation
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ProspectingThe Lifeblood of Selling

• Prospect qualified person or organization
• Prospecting identifies potential customer
• Lead name of a person or organization (also
  referred to as a suspect)

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A qualified prospect is MAD

• He or she has
• Money to buy
• Authority to buy
• Desire to buy

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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

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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

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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
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Compensation for the Salesperson that Prospects
is Often

• Based upon 100 commission if you do not sell,
  you do not earn

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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

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Where to Find Prospects

• Sources may be varied or few
• Persons selling different services and goods
  might not use the same sources

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Planning a Prospecting Strategy

• Prospecting requires a strategy
• It is a skill that can be constantly improved

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Prospecting Methods

• E-prospecting on the Web
• Individuals
• Organizations
• Cold canvassing
• Endless chain customer referral
• Orphaned customers
• Sales lead clubs

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Prospecting Methods, cont

• Prospect lists
• Become an expert get published
• Public exhibitions and demonstrations
• Center of influence
• Direct mail
• Telephone and telemarketing
• Observation
• Networking

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Exhibit 7-4 Prospecting Methods that Work!
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Exhibit 7-5 The Processing System Within a
Telemarketing Center
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Exhibit 7-6 Reports From a Telemarketing Center
to Other Marketing Groups Within the Firm
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Prospecting Guidelines

• Three criteria are
• Customize to each prospect
• Concentrate on high potential customers first
• Call back on no-buys
• Always keep knocking on prospects and customers
  door to help them

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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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The Prospect Pool

• Leads
• Referrals
• Orphans
• Your customers

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Exhibit 7-7 Components of the Prospect Pool
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The Referral Cycle

• Obtaining referrals is a continuous process
  without beginning or end
• Referral cycle when and how to ask for
  referrals
• The parallel referral sale
• Sell the product to person
• Obtain prospect name(s) from person

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The Referral Cycle, cont

• The secret is to ask correctly during referral
  cycle
• The preapproach contact phase
• The presentation
• Product delivery contact phase
• Service and follow-up contact phase customer
  service

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Exhibit 7-8 The Referral Cycle When to Ask for
Referrals
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Dont Mistreat the Referral

• Mistreatment can have a ripple effect
• The mistreated referral tells your customer
  you may lose both!
• Remember to follow the Golden Rule

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Treat the Referral Like a Customer

• Once you have sold the referral, and gotten more
  referrals, ask this new customer to contact the
  referring customer on her experience with the
  salesperson
• Now you have two customers giving referrals
• This can create an endless chain of referrals
  quickly filling your prospect pool with only
  customers and referrals
• Now, no more cold calling

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Call Reluctance Costs You Money!

• Call reluctance refers to not wanting to contact
  a prospect or customer
• For many salespeople, owning up to call
  reluctance is the most difficult part of
  combating it

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Call Reluctance How to Conquer the Fear
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Obtaining the Sales Interview

• Key factor in selling process is obtaining a
  sales interview
• The benefits of appointment making
• Telephone appointment
• Personally making the appointment
• Believe in yourself
• Develop friends in the prospects firm
• Call at the right time on the right person
• Do not waste time waiting

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Wireless E-mail Helps You Keep in Contact and
Prospect

• No one needs constant contact with the home
  office, customers, and prospects more desperately
  than a sales representative

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Summary of Major Selling Issues

• The sales process involves a series of actions
  beginning with prospecting for customers
• Find prospects to contact
• Obtain appointments
• Plan the entire sales presentation

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Summary of Major Selling Issues, cont

• Popular prospecting methods
• Cold canvas
• Endless chain methods
• Public exhibitions and demonstrations
• Locating centers of influence
• Direct mailouts
• Telephone and observation
• Salesperson must develop ways of getting to see
  the prospect