Section 12.2 Preparing for the Sale

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Marketing Essentials
Section 12.2 Preparing for the Sale
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SECTION 12.2
Preparing for the Sale
What You'll Learn

• Sources for developing product information
• Prospecting sources and methods
• How leads are developed
• Preparation for the sale in business-to-business
  selling and retail selling

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SECTION 12.2
Preparing for the Sale
Why It's Important
As a salesperson, you will need to prepare for
the sale by learning about the industry and the
products you will be selling. In specific sales
situations, you may also need to find customers.
The tools and techniques for accomplishing these
tasks are covered in this section.
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SECTION 12.2
Preparing for the Sale
Key Terms

• preapproach
• prospect
• referrals
• endless chain method
• cold canvassing

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SECTION 12.2
Preparing for the Sale
The Preapproach
The preapproach is getting ready for the
face-to-face encounter in a selling situation.
Salespeople do the following to prepare for the
sale

• Study their products.
• Keep abreast of industry trends.
• Research potential customers.
• Develop familiarity with their company's policies
  and procedures.

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SECTION 12.2
Preparing for the Sale
Product Information
Product knowledge is essential for success in
selling. The following are some of the ways
salespeople find product information

• Direct experienceusing the product
• Written publicationsmanuals, warranties,
  catalogs
• Other peopleprevious users, supervisors,
  manufacturer's representatives
• Formal training

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SECTION 12.2
Preparing for the Sale
Industry Trends
Sales representatives read periodicals related to
their trade to gain insight into the industry.
All industries have trade publications related to
their industry.
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
A prospect, or a lead, is a potential customer.
There are seven main methods for developing
prospects

• newspapers
• commercial lists
• customer referrals
• cold canvassing

• employer leads
• telephone directories
• trade and professional directories

Slide 1 of 4
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
Employer Leads Most businesses try to generate
prospects but also rely on salespeople to find
new customers. Telephone Directories The White
Pages is a list of names and phone numbers of
potential customers. The Yellow Pages can be
useful for B2B prospecting.
Slide 2 of 4
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
Trade and Professional Directories These can
help B2B salespeople locate customers by
industry. Newspapers Birth announcements provide
leads for insurance salesmen. Notices of mergers
and new businesses provide leads for B2B
salespeople. Commercial Lists Some companies
specialize in providing lists of potential
customers categorized by education, income, etc.
Slide 3 of 4
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
Customer Referrals Satisfied customers refer
their friends and relatives. This is called the
endless chain method. Cold Canvassing Potential
customers are selected at random, such as by
going door-to-door or through the phone book.
Slide 4 of 4
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Business-to-Business
Selling
If the sales call is with an existing customer,
the salesperson analyzes past sales records and
reviews notes about the customer's personality,
family, and interests.
Slide 1 of 2
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Business-to-Business
Selling

• If the sales call is with a new customer, the
  salesperson must research answers to the
  following questions, usually through a phone call
  to the customer
• Does the prospect need this product or service?
• Does the prospect have the financial resources
  to pay?
• Does the prospect have the authority to buy?

Slide 2 of 2
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Retail Selling

• Since the customer comes to you, retail
  preparation includes
• Straightening, rearranging, and replenishing the
  stock.
• Adjusting price tickets before and after special
  sales.
• Learning where stock is located and how much is
  available.

Slide 1 of 2
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Retail Selling

• Taking inventory.
• Arranging displays.
• Vacuuming the floor, dusting the shelves, and
  keeping the selling area neat and clean.
• These activities keep you familiar with the
  merchandise and makes it easier to find things
  for customers.

Slide 2 of 2
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ASSESSMENT
12.2
Reviewing Key Terms and Concepts
1. What are four categories for sources of
product information? 2. Why don't all businesses
require salespeople to find prospects? 3. Name
five sources of prospecting. 4. What is the
difference between the endless chain method and
cold canvassing as methods for prospecting? 5. Wha
t is the focus of the preapproach in retail
sales?
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ASSESSMENT
12.2
Thinking Critically
You have been asked to research a new prospect
for your boss. Your research of this lead found
that the company's owner is a 90-year old sole
proprietor. The company is financially sound and
pays its bills on time. The only concern is that
there is no heir-apparent (someone to take over
if the owner is no longer capable of running the
business). Would you qualify this prospect as a
worthy customer? Why or why not?
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Marketing Essentials
End of Section 12.2