Stages In the Personal Selling Process

The professional selling process is a continuous, interacting, and overlapping cycle of seven stages
Stages in the Selling Process 1. Prospecting and qualifying prospects 2. Planning the sales call (the preapproach)

3. Approaching the prospect

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. 32

Figure 3.1: The Personal Selling Process (PSP)

Copyright Houghton Mifflin Company. All rights reserved.

33

Prospecting and Qualifying Prospects

The first stage of the selling process gives the PSP wheel its initial push

Copyright Houghton Mifflin Company. All rights reserved.

34

The Importance of Prospecting

Prospecting is necessary for several reasons
customers switch to other suppliers customers move out of your territory customers go out of business customers die customers' businesses are taken over by other companies 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, fired, retired, or resign you need to increase total sales

Copyright Houghton Mifflin Company. All rights reserved.

35

Benefits of Prospecting
The benefits of prospecting include:
1. Generates a continuous flow of sales 2. Offsets the loss of customers 3. Helps create a more productive selling environment for you (i.e., the likelihood of your making a sale increases because you are dealing with a qualified-legitimate-customer) 4. Provides a more enjoyable selling situation (i.e., your qualified prospects have a need for the product; therefore, you wont need to use highpressure selling)

Copyright Houghton Mifflin Company. All rights reserved.

36

Qualifying: How a Lead Becomes a Prospect

A lead points to a potential buyer. Salespeople must qualify a lead in terms of 4 basic criteria that can be remembered by the acronym NAME, as follows:
1. Need or want 2. Authority to buy

3. Money or ability to buy

4. Eligibility to buy

Two other qualifying criteria are:

1. the accessibility of the individual 2. the potential profitability of the prospect over the long run

Copyright Houghton Mifflin Company. All rights reserved.

37

Sources of Leads

Two basic ways to search for leads to qualify as prospects

1. random searching 2. selective searching

Copyright Houghton Mifflin Company. All rights reserved.

38

Copyright Houghton Mifflin Company. All rights reserved.

39

Copyright Houghton Mifflin Company. All rights reserved.

310

Random-Lead Searching
Generating leads by randomly calling on businesses (sometimes called "blind" searching) include:
1. Door-to-Door Canvassing and Cold Calls
2. Territory Blitz of Organizations 3. Advertising

4. Electronic mail and Web sites

Copyright Houghton Mifflin Company. All rights reserved.

311

Selective-Lead Searching: Direct Sources

Systematic strategies to generate leads from predetermined target markets and controlled largely by the field salespeople themselves include:
Friends, neighbors, and acquaintance Personal observation Spotters Endless chain Centers of influence Internet (e-mails)

Copyright Houghton Mifflin Company. All rights reserved.

312

Selective-Lead Searching: Direct Sources (contd)

Former prospects and customers
Junior salespeople and sales associates Professional sales organizations

Company records
Mailing Lists and Directories Newsletters

Surveys

Copyright Houghton Mifflin Company. All rights reserved.

313

Selective-Lead Searching: Indirect Sources

General announcements or calls to potential markets, hoping that prospects will come forward and identify themselves, include:
1. Direct mail
When preparing a direct-mail piece, salespeople ought to follow these guidelines:
Address your letter to an individual Use an attractive format Keep it simple Stress benefits Provide proof Ask for action Follow up your mailing Keep records of mailing results

Copyright Houghton Mifflin Company. All rights reserved.

314

Selective-Lead Searching: Indirect Sources (contd)

2. Trade shows, fairs, and exhibits
3. Professional seminars, workshops, and videoconferences

4. Contests
5. Free gifts 6. Unsolicited inquiries 7. Telemarketing for Proposals

Copyright Houghton Mifflin Company. All rights reserved.

315

The Prospecting Plan

To maximize prospecting activities, salespeople must develop and execute a comprehensive prospecting plan, which has several steps:
1. Set objectives for prospecting 2. Allocate time for prospecting 3. Become familiar with prospecting techniques 4. Choose one or more prospecting techniques

5. Systematize the prospecting plan

6. Evaluate the results (use Prospecting Methods Evaluation Form)

Copyright Houghton Mifflin Company. All rights reserved.

316

Figure 3.2: Prospecting Methods Evaluation Form

Copyright Houghton Mifflin Company. All rights reserved.

317

Prospects: The Salesperson's Pot of Gold

Prospects provide every selling organization with the promise of future business When salespeople aren't having sales success, a long list of prospects can keep them motivated to make the next sales call and continue looking for that "pot of gold" at the end of the faint rainbow peeking through an otherwise cloudy day

Copyright Houghton Mifflin Company. All rights reserved.

318

Key Terms
Personal Selling Process (PSP)
The seven-stage process of professional personal selling, from prospecting and qualifying prospects to following up and servicing customers.

Lead
Anythinga name, address, or telephone numberthat points to a potential buyer.

Prospect
A lead that has been qualified as a definite potential buyer.

NAME
An abbreviation for the process of qualifying a lead in terms of need for the product, authority to buy, money to be able to buy, and overall eligibility to buy.
Copyright Houghton Mifflin Company. All rights reserved. 319

Key Terms (contd)

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.

Cold Calling
Approaching or calling a business without an appointment for the purpose of prospecting or selling.

Copyright Houghton Mifflin Company. All rights reserved.

320

Key Terms (contd)

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 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 recently satisfied customers for prospect referrals.

Copyright Houghton Mifflin Company. All rights reserved.

321

Key Terms (contd)

Centers of Influence
Individuals or groups of people whose opinions, professional activities, and lifestyles are respected among people in the salesperson's target markets.

Marketing Information System (MIS)

Any systematized, continuous process of gathering, sorting, analyzing, evaluating, and distributing market information. Can be helpful to salespeople in obtaining leads and prospects.

Copyright Houghton Mifflin Company. All rights reserved.

322