CHAPTER 5 Strategic Prospecting and Pre-approach

The Strategic Prospecting Process A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers. Sales Funnel or Pipeline: A representation of the trust- based sales process and strategic sales prospecting process.

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.

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

Turning Suspects/Leads Into Bona Fide Prospects Identify MAD Customers  M oney to Buy  A uthority to Buy  D esire to Buy

Popular Prospecting Sources & Methods Personal Contact Observation Cold Canvassing Trade Shows Spotters Sales Seminars/Educational Forums

Popular Prospecting Sources & Methods Internal Sources Company Records Lists and Directories Advertising Inquiries Telephone Inquiries Mail Inquiries Internet or World Wide Web

Popular Prospecting Sources & Methods External Sources Referrals Introductions Community Contacts (Centers of Influence) Organizations Non-competing Salespeople Visible Accounts Networking (Electronic and Personal)

Nature and Importance of Qualification The nature of the qualifying task is different for various types of personal selling Salespeople must be resourceful and should devote time and effort to the search and qualification phase

Qualified Prospects...  Can benefit from the sales offering  Have the financial wherewithal to make the purchase  Play (individual) an important role in the purchase decision process  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

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Establish daily, weekly and monthly quotas for acquiring new prospects

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Establish a regular daily schedule for conducting prospecting activities. Allocate Time

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Track your results from using the different prospecting methods. Keep Records Allocate Time

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Evaluate What is working for you? Compare results and use the methods that work best for you. Keep Records Allocate Time

Prospecting Plans are the Foundation for Effective Prospecting Set Goals Evaluate Develop confidence by knowing your products and believing that you offer the best solutions. Keep Records Allocate Time Stay Positive

Developing a Strategic Prospecting Plan

Important Pre-Approach Information Examples include: Client name and pronunciation Risk/type of buying situation Communication style/profile of the buyer (may not be able to assess till several visits) What is the market position of the company Major competitor(s) of the company Industry condition/intelligence Challenges the organization may be facing Company characteristics – size, division, decision makers, etc.

Topics for Thought and Class Discussion It’s October 1 and your first day on the job as a salesperson for a central air conditioning firm in a town of about 65,000 people. Your boss, the owner of Stibb’s Commercial Air Conditioning, has said, “Go out and get some business customers.” Until now, Mr. Stibb has relied on a small advertisement in the local telephone directory to generate sales, but because sales are particularly slow during the fall and winter months, he has hired you as his first salesperson. Your earnings will come solely from commissions. How will you prospect for potential customers?