Chapter 7

Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Some questions answered in Chapter 7

Why is prospecting important for effective selling? Are all sales leads good prospects? What are the characteristics of a qualified prospect? How can prospects be identified? How can the organizations promotional program be used in prospecting? How can an effective lead qualification and management system aid a salesperson? How can a salesperson overcome a reluctance to prospect?

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Definitions
Prospecting:
Prospecting is the process of locating potential customers for a product or service.

Lead:
A lead is potential prospect, a person or organization that might or might not be a true prospect.

Prospect:
A prospect is a potential customer, a person or organization that might be a true customer. If the lead is a good candidate for making a sale.

Customer:
If the prospect is committed to a certain course of action (e.g.) places an order.
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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Steps in the selling process

Exhibit 7.1

Prospecting Collecting pre-call information Making the approach Discovering needs Making the presentation

.............................Lead

..............Prospect

Responding to objections Obtaining commitment Follow up

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......Customer

Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Am I a prospect?

You need to answer 5 questions:

Do I have a want or a need that the purchase of the salesperson's product can satisfy? Do I have the ability to pay? Do I have the authority to buy? Can I be approached favorably? Am I eligible to buy?

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Sources of Leads

Satisfied customers Endless-chain Center-of-influence Networking Promotional activities

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Lists and Directories Canvassing Spotters Telemarketing Sales letters

Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Sources of leads: satisfied customers

Satisfied customers 1. Current customers 2. Previous customers It is the most effective source of leads. They provide additional business, sales, in addition refer the seller to other leads. The name of a lead provided by a customer is called referred lead and considered to be the most successful type of prospecting. Why?

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Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Sources of leads: endless-chain

Exhibit 7.3 David Craig Engineer

Linda Strand Contractor

Frank Hartjen Lawyer

Jim Smith County Schools

Linda Clinton Lawyer

Steve Jones Barnett Bank

Ronald Deck Accountant

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Mary Swain Administrator

Wayne OSullivan Contractor

Elizabeth Shick Banker

Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Sources of leads: center-of-influence

Eagles Bell cows Opinion leaders

Information flows Influence flows
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They may never buy

Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Sources of leads
Assume you are prospecting for a job when you graduate. Which of these methods would be most useful?

1. 2. 3. 4. 5.

Lists and directories Center-of-influence Cold calls, canvassing Letters Promotional activities

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Sources of leads

Additional sources of leads: 1. Satisfied customers 2. Endless chain 3. Networking 4. Internet 5. Shows (job fairs) 6. Spotters (employment agencies)

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Prospect lists

Assume you belong to a social organization on campus that needs to recruit new members. How would you develop a prospect list?

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

North America Industry Classification System (NAICS)

NAICS provides common industry definitions for Canada, Mexico, and the U.S. which facilitate the measurement of economic activity in the three member countries of NAFTA. NAICS is replacing the Standard Industrial Classification System, a system which had been in place for more than 50 years. NAICS is consistent with the International Standard Industrial Classification of All Economic Activities, published by the United Nations, to facilitate measurement of global economic activity.

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

North America Industry Classification System (NAICS)

2 Digit Industry Subsector
Broadcasting and telecommunications

3 Digit Industry Group

Radio and television broadcasting Cable networks and program distribution Telecommunications

4 Digit Industry
Wire telecommunications carriers Wireless telecommunication carriers, except satellite paging Telecommunications resellers Satellite telecommunications Other telecommunications

5 Digit U.S. National Industry

Paging

Cellular and other wireless telecommunication

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Using NAICS

Assume you are about to graduate from college. How would you use the NAICS system to help you locate prospective employers?

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Promotional activities

Advertising Catalogues Direct mail Trade shows Seminars Publicity Telemarketing

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Direct mail

Using inquiries Direct mail and request for additional information Covering letter with information and bounce-back card Advertisement in a trade publication (e.g.) magazine

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Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Shows
Trade shows computer, furniture, car, . Conventions medical, NGOs, Fairs book, mobile,

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Seminars
Industrial marketers Pharmaceutical companies Electronic communication equipment companies

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Lists and directories

Professional membership lists syndicate Trade membership lists Club membership lists Chamber of commerce directories Telephone directories Industrial directories Newspapers Internationally: procuring lists

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Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Canvassing
Cold calls or cold canvass calls Blitz or crash campaign

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Resolving conflicting advice

Assume your company sends you, via email, the names and addresses of leads who registered with your firms web site that day. All of the leads sent are in your territory and your firm expects you to quickly follow-up with these leads. However, your sales manager suggests that such leads are a waste of time. S/he instructs you to make cold calls instead, saying Cold calling got me where I am today. It will for you too! What would you say in response?

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Chapter 7
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Spotters
Bird dogs Consultants outside paid

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Telemarketing
Telephone Electronic media Outbound telemarketing Inbound telemarketing Importance of active listening Limitations of telephone prospecting! Tie-in with other tool

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Chapter 7
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Sales letters
The opening paragraph gain attention The body of the letter present benefits The final paragraph seek action Limitations of sales letters!! Promotional item with the mailer

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Other sources of leads

Trade journals General business publications Local newspapers Non-sales employees in the same firm Non-competing salespeople Social clubs Professional trade publications

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Getting the most out of prospecting

Learn to effectively qualify and evaluate prospects. Remember the 20% - 80% ratio. Categorize them. Classify them A, B, C,. Segment them. Not all sales leads are good prospects. Keep good records. Reporting data. Keep quotas. Prospecting is a continues process. Evaluate results. Select the most profitable. Use effective lead qualification and management system.

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Overcome reluctance to prospecting

Listen to the excuses of other salespeople Identify the excuse you use Engage in role-playing Have someone accompany you Make calls without your supporting partner Re-enact the call in front of a group Set specific goals Recount your own success

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Chapter 7
Questions answered What is A prospect? Sources of leads NAICS Conflicting advice Terminology

Any questions about the terminology?

Banner advertising Bird dog Blitz Bounce-back card Buying community Center-of-influence method Cold call Cold canvass method Databases Data mining Endless-chain method e-selling Exclusive sales territories House accounts Inbound telemarketing Lead Lead management system Lead qualification system Networking North America Industry Classification System (NAICS) Outbound telemarketing Postcard pack Prequalification Prospect Prospecting Qualifying a lead Referred lead Search engines Selling deeper spam Spotter Standard Industrial Classification (SIC) Systems integrator Telemarketing

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