©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategic Prospecting and Preparing for Sales Dialogue 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Learning Objectives Discuss why prospecting is an important and challenging task for salespeople. Explain strategic prospecting and each stage in the strategic prospecting process. Describe the major prospecting methods and give examples of each method. L 1 L 2 L 3

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Learning Objectives Explain the important components of a strategic prospecting plan. Discuss the types of information salespeople need to prepare for sales dialogue. L 4 L 5

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Key Thoughts Strategic prospecting is the process by which salespeople separate out those that are more likely to buy from those that are less likely to buy in order to avoid wasting resources. Leads may be generated in a variety of methods. It is important for salespeople to know which are more effective. Satisfied customers are often the best source of good leads. A strategic prospecting plan will improve a salesperson’s prospecting efficiency and effectiveness. Salespeople should spend some time learning what they can (without wasting resources) about their qualified leads in order to develop an effective sales strategy.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 The Importance and Challenges of Prospecting Customer-bases are not permanent, salespeople may lose customers due to: – Low satisfaction – Competition – Economic fluctuation – Other forms of attrition The prospecting process can be long – It may take weeks to replace a lost customer with a new one – Revenue streams can fluctuate if “pipeline” isn’t managed Prospecting isn’t easy and often includes a lot of rejection

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

5 Why Buyers Won’t See Salespeople 1.They may have never heard of the salesperson’s firm. 2.They may have just bought the salesperson’s product category, and there is presently no need. 3.Buyers may have their own deadlines on other issues, and they are not in a receptive mood to see any salespeople. 4.Buyers are constantly getting calls from salespeople and do not have the time to see them all. 5.Gatekeepers in any organization screen their bosses’ calls and sometimes are curt and even rude.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Ethical Dilemma

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Q. 1. What are the steps in the selling process?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Strategic Prospecting Process Sales Leads or Suspects Generated from Internal or External SourcesGenerated from Internal or External Sources Lead Generation Methods Should be ManagedLead Generation Methods Should be Managed Qualifying Process Need?Need? Financial ResourcesFinancial Resources Authority to Make Purchase DecisionAuthority to Make Purchase Decision Sales Prospect Prioritize Prospect ListPrioritize Prospect List Initiate Pre-Call PlanningInitiate Pre-Call Planning Ideal Customer Profile: The characteristics of a firm’s best customers or the perfect customer.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Qualifying Prospects Sales Funnel or Pipeline: A representation of the trust-based sales process and strategic sales prospecting process.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Q. 2. What are the sources of locating prospects?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Popular Prospecting Sources & Methods Basic purpose of strategic prospecting: To help salespeople determine the best sales opportunities in the most efficient way.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Cold Canvassing

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Networking

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Company Sources Company Records Advertising Inquiries Telephone Inquiries Trade Shows Seminars Industry Trade Show in South Africa

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Published Sources Directories – Hoovers – Harris Directory – Moody’s industrial Directory Commercial Lead Lists – Sales Genie – infoUSA – Others Other Web Sources (including use of NAICS) NAICS Code

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Developing a Strategic Prospecting Plan

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Developing a Strategic Prospecting Plan

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Q. 3. Who are qualified prospects?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Qualified Prospects... Can benefit from the sales offering Have the financial wherewithal to make the purchase Play an important role in the purchase decision process

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Qualified Prospects... Are eligible to buy based on a fit within the selling strategy Are reasonably accessible and willing to consider the sales offering Can be added to the customer base at an acceptable level of profitability

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Q. 4. What are the steps in Preapproach?

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Gathering Precall Information: About the Buyer Name, title and contact information Education & work background Community & organization involvement Hobbies & interests Communication style

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Gathering Precall Information: About the Company Type of business History of business Current strategy & performance Number of employees Target markets served Products & services offered Key competitors

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Gathering Precall Information: About the Selling Situation Type of purchase Motivation for buying Buying center members & roles Buying process Current supplier Available budget Competitors involved

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Ethical Dilemma

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Sources of Information