Preliminary Steps in the

Selling Process

Chapter 4

Chapter Overview
Basic steps in personal selling process

Common sources of prospects

MAN concept for qualifying a prospect
Pre-approach activities before selling
Sequence of call planning activities needed to

prepare for a sales call.

PROSPECTING
Salespeople must seek out potential
customers. Two major activities are
involved in prospecting:
1.

2.

Identifying potential customers (sales

lead)
Qualifying them to determine if they are
valid prospects.

1. Identifying Potential Customers

Sales training should be directed towards

helping new salespeople improve the efficiency

of prospecting.
Successful sales people develop a strategy for

prospecting that involves an organized and

active system for generating sales lead.
One approach is Networking is an active

process of acquiring new contacts and

cultivating existing ones.
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Target market
Determine the type of person or organization that
is more likely to purchase a given good or
service.
Market researchers, product manages, market
planners, and sales managers can help the
sales person to define the target market.

A market survey is also used to learn more

about target market.
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2. Qualify the Prospect

Making sure that the customer:

Has a need for that product or service
desire to buy
Has the financial resources to buy

Has the decision making authority.

QUALIFYING PROSPECTS
MAN Approach
Money: does the customer have money, or

resources, to purchase the product?

Authority: does the prospect have the authority to

make a commitment? This is particular concern

when dealing with government or big organizations.
Need: does the prospect want or need the good or

service? The salesperson should do as much

possible to learn about the prospects needs and
wants.
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How do we Identify Prospects?

1.

Present customers

The best source of prospects is usually the

salespersons existing customers.
It is said to be easier to sell additional goods and
services to existing customers then to attract new
customers.
Present customers can also give referrals to the
sales person because of good relationship.

2. Former customers
It may be sometime feasible to reconsider former
customers as prospects.
List of inactive customers can be compiled from
company records.
3. Cold Calling
Unsolicited sales calls
Sales person makes contact with a potential
customer, introduces himself, and asks if there is a
need for the product - telemarketing
Its an expensive approach.
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4. Directories and mailing list

The classified telephone directory is an example
Membership directories of trade associations,
professional services, social organizations are also
good sources for prospects.
5. Referrals
Referrals from satisfied customers and other
people familiar with their goods and services.
Endless chain prospecting sales representative
asks a customers for names of friends or business
associates who might need similar good or
services.
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6. Trade shows and exhibitions

A cost-effective way is to make personal contacts
and locate qualified prospects is to participate in
trade exhibitions and shows.
Follow up on the sales lead developed in these trade
shows.
Attract prospects for the show by mailing them or
advertising.
7. Personal contacts
Effective sales person are active in professional,
social and service organizations where they develop
contacts.
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8. Direct marketing
Companies, here, use a combination of advertising,
direct mails, and telemarketing. This is designed to
generate sales lead and obtain useful sales
information about potential customers.
These provide the firm with higher quality leads and
more information with which to complete successful
sales calls.

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PRE-APPROACH AND SALES

PRESENTATION PLANNING

Pre-approach gathering

information about the prospect

that will be used to formulate
the sales presentation
Presentation Plan decide on

presentation format and sales

mix
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Pre - Approach
Additional information is gathered about the

prospect and his or her needs, to prepare the

best strategy to sell.
Who is the customer? Who will make the actual
decision to purchase?
Who will be responsible for using the good or
services?
What are the customers needs? Determine the
customers dominant buying motive the major
reason the prospect is purchasing a good or
service.
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Call Planning
Specific sequence of activities before the sales

interview takes place

Developing a strategy a tailor made strategy that
suits his/her needs. The sales person must also
evaluate alternatives available to the prospect and
attempt to predict actions of potential customers.
Making an appointment this will assure that the
prospect will be available, and it saves time and cost
of the company and salesperson. It can sometimes
give the sales executive additional information during
the pre-call phone conversation.

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Sales Mix Model

Presentation
Pace

Presentation
Scope

Prospect

Depth of
Inquiry

Two-Way
Communication

Use of
Visual Aids
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NONVERBAL STRATEGIES

First customer contact critical!

Difficult to rebound from

negative first impression

Nonverbal often more

important than verbal

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UNDERSTANDING BASED ON
NONVERBALS AND FEELINGS

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SHAKING HANDS

May sound trite but it is very

important
Make eye contact
Firm grip

Give your name when you

extend your hand

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FACIAL EXPRESSIONS

Facial expressions convey

inner feelings
People tend to trust a

smiling face
Reading facial expressions

fairly universal across

cultures
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EYE CONTACT

Good eye contact saysIm

listening.
Prolonged eye contact can

send the wrong message

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EFFECT OF VOICE QUALITY

EVER HEARITS NOT JUST WHAT YOU
SAY, BUT HOW YOU SAY IT?
-- Avoid rapid-fire speech
-- Vary speed of your delivery
-- Sound upbeat, energetic but not
phony
--Convey enthusiasm in your voice
-- Try to sound relaxed
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MANNERS: WHAT TO AVOID

Avoid temptation to start on first name basis

Avoid offensive comments or jokes
Avoid religious or political discussions
Avoid discussing business before meals are
served
Avoid long voice-mail messages speak
clearly, concise message
Avoid cell-phone contempt

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NEED TO KNOW

YOUR PRODUCTS

YOUR COMPANY & ITS POLICIES

YOUR COMPETITION & INDUSTRY

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PRODUCT INFORMATION
CATEGORIES

Product development and quality

improvement processes
Product configuration
Performance data and specifications
Maintenance and service
Price and delivery

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KNOW YOUR ORGANIZATION

As closest-contact salesperson represents

organizations culture

Organizational culture is collection of beliefs,

and behaviors, and work patterns common to

firms employees
Many prospects use a firms past performance

as index for current products/services

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KNOW COMPETITION AND INDUSTRY

Acquiring knowledge of competition is the key
Knowing strengths and weaknesses of competing

products allows you to emphasize your benefits

Prospects do raise questions about competition

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HANDLING COMPETITION

1. Avoid referring to competition during sales

presentations
2. Never discuss competition unless you have facts

straight
3. Avoid criticizing competition
4. Be prepared to neutralize competitor proposals

by adding value to yours

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BE AN INDUSTRY EXPERT

Sales people need to become expert in industry

they represent

Need to move beyond product specialist to

business analyst

Knowledge of industry must be both current and

detailed

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BENEFITS NOT FEATURES

I dont think that we understood our real goal when

we first started Federal Express. We (initially)
thought we were selling the transportation of
goods; in fact, we were selling peace of mind.
Frederick Smith, Founder, Federal Express

Last slide Chapter 5.

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