Chapter 2

 Prospecting: The process through which salespeople identify and engage with new customers or
new areas of business with existing customers.
 Quota: A quantifiable sales goal for a given time period.
 Opportunity costs: For the buyer, the costs associated with doing nothing or with other
alternatives
 Call reluctance: An avoidance of customer interactions. (Takes too much time away from
existing customer relationships.)
 Hunting orientation: A focus on securing new customers through lead generation, prospecting,
pre-call planning, and delivering sales presentations.
 Farming orientation: A focus on selling to existing customers by building long-term
relationships.
 Inside salespeople: Salespeople who perform selling activities at the employer’s location,
typically using email and telephone.
 Sales-development representatives: Inside salespeople tasked with generating leads.
 Prospecting Process Five steps: Lead generation. Prioritizing the leads. Qualifying leads.
Prioritize prospects. Plan calls.
 Lead: An individual or organization that exhibits characteristics similar in nature to those
exhibited by current customers.
 Inbound leads: Leads initiated by the potential buyer.
 Outbound leads: Leads in which the selling firm proactively contacts the lead (the potential
buyer).
 Hot lead: An individual or organization that has shown some level of interest in the product or
service being offered.
 Cold lead: An individual or organization that has yet to demonstrate interest in the product or
service being offered.
 Lead qualification: A process designed to differentiate leads from prospects.
 Prospect: An individual or organization that demonstrates a need for the product or service
being offered, possesses the authority and ability to purchase, and demonstrates both
organizational potential and purchasing alignment.
 Prospect prioritization: A process through which salespeople rank-order prospects based on
their desirability.
 Ideal customer profile: A profile of organizational characteristics shared by current, highly
desirable customers.
 Networking: Activities through which individuals communicate to strengthen their professional
and/or social relationships.
 Virtual networking: Networking activities that take place via social media.
 Social selling: A sales approach that develops, nurtures, and leverages relationships online to
sell products or services.
 Traditional networking: Face-to-face communications that are designed to strengthen an
individual’s professional and/ or social relationships.
 Referral: A lead provided by an existing customer, based on a belief that the potential buyer
may benefit from the products or services provided by the selling firm.
 Trade shows: Industry-specific events designed to bring selling companies and customers to the
same location.
 Cold-call: An unsolicited call or visit by a salesperson.
 Sales directories: Lists of leads that are typically compiled by third parties.
 Centers of influence: Someone who is both connected to and respected by a group of
prospects.
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