Selling Building Partnerships 9th Edition Castleberry Solutions Manual Download

Chapter 06 - Prospecting
Selling Building Partnerships 9th Edition

Castleberry Solutions Manual
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6-1
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
6-2
Education.
CHAPTER 6
PROSPECTING
Outline of Chapter
I. The Importance of Prospecting
II. Characteristics of a Good Prospect
A. Does a want or need exist?
B. Does the lead have the ability to pay?
C. Does the lead have the authority to buy?
D. Can the lead be approached favorably?
E. Is the lead eligible to buy?
F. Other criteria
III. How and Where to Obtain Prospects
A. Satisfied customers
B. Endless-chain method
C. Networking
D. Social Networking
E. Other uses of the Internet
F. Ads and Direct Mail
G. Shows, Fairs, and Merchandise Markets
H. Webinars and Seminars
I. Lists and directories
J. Data Bases and Data Mining
K. Cold Calling
L. Spotters
M. Telemarketing
N. Become an Expert
O. Sales Letters
P. Other sources of leads
IV. Lead Qualification and Management Systems
V. Overcoming a Reluctance to Prospect
VI. Selling Yourself
VII. Summary
6-3
Education.
Teaching Suggestions
(an alternative would be to use the PowerPoint slides provided with the text)
1. Begin by discussing a real life situation from your life to see if students can predict if you are a
prospect or not for a specific product/service. For example:
“I own a 2009 Plymouth Voyager with 85,000 miles. I have 4 children and take at least two long
trips (over 500 miles) each year. I haven’t had many repairs (last year’s repairs were $900) and I
like the way the car drives.”
“Now assume that you are a car salesperson which sells mini and full size vans. Do you consider
me a prospect? Am I a good lead?”
After the class members give their opinions talk about the characteristics of a good prospect.
2. Discuss the various methods of prospecting.
Then ask students which methods would be best, assuming they are trying to prospect for a job
right out of college. [List their answers on the whiteboard]. They should assume that they are
trying to secure an entry-level sales position. Don’t just let them list where to obtain leads, make
them be more specific. For example if a student says “lists” ask “What lists? Where can you get
them?” etc
This would be a good place to discuss the answers to Case 6-1 if you assigned it before class.
3. Note that the best prospecting methods in a given situation are not those that supply the largest
number of leads. The best are those that supply the largest number of eventual sales and profits.
Go back over the list on the whiteboard (from #2 above) and try to determine which have the
greatest chance of actual success (i.e. getting a job). For example, a particular center-of-influence
may only supply the names of two firms, but, because of his knowledge, these may be the two
best leads for a student. If you assigned Exercise 6-1 you might ask for students to report on their
findings at this time.
4. Briefly talk about the importance of developing a lead qualification and management system and
keeping good prospecting records. You probably want to discuss NetSuite software at this point.
5. Summarize what you covered:

Characteristics of a prospect.
Methods of prospecting.
Importance of gauging actual success of each method.
Prospecting records.
6-4
Education.
Suggested Answers to Ethics Problems
1. Suppose you're working at a trade show. You walk the floor of the show during one of your
breaks, and you strike up a conversation with a salesrep from a competitor. She starts talks
about their products and gives details on price breaks she offers to banks. She asks, "What kind
of price deals do you give banks?" What would you say?
Do not talk about pricing at all. To do so can be considered price fixing by the FBI. Just say,
“I’m sorry but, as you know, we’re not allowed to talk to competitors about our prices or how we
come up with prices.
2. Suppose a spotter not only tells you about a potential prospect, but also provides you with
confidential memos and emails, detailing the people involved and what the issues are. However,
the emails and notes are all marked with statements which prohibit the information from being
shared with anyone outside of the company. What will you do with that confidential information
that you're not supposed to have?
Ethically, you should not use it. You should destroy any memos or emails that are so marked. If
you are caught with those materials, the potential prospect could decide to never do business with
you.
Suggested Answers to Questions and Problems
1. Describe a referral event that could be created, assuming you are a member of a service
club in your college. Your target market for new leads consists of students not currently
members in any service club.
In the middle of the fall term, you could gather a group of your current club members and ask
them to bring people they know from their classes who might like to join the club. Chances are
they will know at least a few. The event should be held near the school, and include some fun
activity, like white water rafting, renting out an entire video arcade for the evening, or even doing
a service project.
2. Think of a time when you actually were a negative referral for a product or service or company.
Why did you do it? What could the company or salesperson have done to cause you to not be a
negative referral?
Student answers will vary.
3. What things would concern you about prospecting? How will you deal with those
concerns?
Student answers will vary.
6-5
Education.
4. Assume you are a landscape contractor and you specialize in planting quality trees and plants.
Whom might you use as paid spotters to generate leads?
Probably the best spotters would be those who do lawn maintenance, but do not offer landscaping
services themselves. You might also
5. Reluctance to prospect is a real phenomenon. What can you do now (and avoid doing now), while
you’re in school, to avoid being reluctant to prospect when you become a salesperson?
• Engage in role playing activity in class to learn that it’s not that bad when someone says
“no.”
• Set specific goals for yourself each week, to engage in some activity that is similar to
prospecting. For example, you might make a goal to stop by and see each professor and ask a
question or make a comment about something you liked about class.
• Learn to focus on your good traits, instead of focusing on those that need improvement.
• Learn to relax and reduce stress.
• Recount your own successes in your life so far to build your self-confidence.
6. Assume you sell restaurant supplies like cooking equipment, tabletop accessories, tables and
chairs. Locate at least one merchandise mart and one trade show or fair where you might be able
to display your products.
Student answers will vary. One possible answer is national Restaurant Association Show. In
terms of a merchandise mart, Nebraska Furniture Mart might sell these.
7. How would you develop a prospect list under the following situations?
a. You belong to a Lions Club that needs to recruit new members.
Current members (satisfied “customers”) could identify that would be good prospects.
Center-of-influence (like a business person, etc. ) could identify people thinking of joining a
social organization.
Use promotion activities like an ad in the newspaper. Or set up a booth at a local trade show.
Follow-up on all inquiries. Use the endless-chain method on those who might not be qualified,
but who are interested in your organization.
Secure a list of new businesspeople in your area. This would not be a very good method for a
large city.
b. You sell carpet cleaning services to businesses.
• Current customers (satisfied “customers”), if any, could identify prospects.
6-6
Education.
• A center-of-influence (like a secretary or office assistant) could identify people who often
need cleaning services.
• Use promotional activities like an ad in a magazine or trade publication.
• Go to trade shows for businesses.
• Purchase a list of businesses from a list service supplier.
8. "Building Partnerships 6.1" describes how salespeople for BlueLinx look for prospects as they
drive in their territory. Would there be any risks of relying exclusively on that technique?
Answers here will vary widely. Some job sites might not be recognizable from the street (e.g.,
remodeling inside a large downtown building). And some job sites might not have decision
makers present, and instead have workers and supervisors present.
9. "From the Buyer's Seat 6.1 described how some sellers try to get Macy's to buy clothing products
that are too expensive. Assume you are a seller who is selling clothing that is above Macy's price
lines. What would you do?
Student answers will vary. If Macy’s really doesn’t need that line of clothing, then the seller
would be wise to go elsewhere to sell. If, however the line can help Macy’s, then the seller needs
to prove that fact carefully. The seller should identify influencers within Macy’s who are willing
to consider new lines and invest significant efforts there.
10. If you were a salesperson for the following, how would you develop a prospect list?
a. A new line of doors that are energy-efficient.
• Satisfied customers who have purchased your doors in the past.
• From influential and respected members in the community who know others that might
be in the market for new doors.
• Follow up on inquiries to any advertisements you place in newspapers or magazines.
• Attend shows and host seminars to showcase your new line. Follow up on attendees who
expressed an interest in learning more about your line.
• From lists of firms provided by chambers of commerce and business registration records.
• Have telemarketers place calls to prospective leads.
b. A travel agency specializing in vacations to Chile.
• Satisfied customers who have used your agency to set up a group tour in the past.
6-7
Education.
• Keep in contact with organizations and clubs such as Masonic lodges, school groups,
church groups, trade unions, and professional organizations which may be interested in
sponsoring group tours. A center-of-influence in these types of groups would be very
helpful.
• Send direct mail pieces and use advertising. Follow up on inquiries.
• Any clubs or organizations that highlight Chilean themes (e.g. dance clubs, collectors of
Chilean items, college student groups that visit or explore Chile).
• Keep in touch with employee groups and large corporations which may sponsor group
tours for employees.
c. A manufacturer of an antitheft deterrent device for blu-ray players.
• Satisfied customers.
• Follow up on inquiries from advertisements in magazines that feature such devices, as
well as direct mail.
• Use the endless-chain method for satisfied customers. Approach the prospect as a
referred lead.
• Cultivate known centers-of-influence (e. g. service personnel, key employees at stores).
Suggested Answers to Case Problems
6-8
Education.
Case 6-1: Federated Insurance

Questions
1. What should the salesperson do?
2. How should the salesperson communicate that decision to his customer? To his own company,
Federated?
Here is an answer, from the actual salesperson: So what did I do? I gave the owner back his check and
said we couldn’t do business this year. It was hard, but it was the right thing to do. He respected my
decision; I ended up getting the business the following year, and he has been a satisfied client ever since!
Source: Jim Sodoma, district manager, Federated Insurance; used with permission.
6-9
Education.
Case 6-2: Chicago Marriott Downtown Magnificent Mile

Questions
1. Provide a list of company names and addresses of five actual leads for the Chicago Marriott Downtown
Magnificent Mile. You don’t have to know whether the leads already have used the Chicago Marriott Downtown
Magnificent Mile. Explain where you got the list of leads.
2. Develop the details of an appropriate referral event for the Chicago Marriott Downtown Magnificent Mile. Provide
information on the place of the event as well as what should happen during the event. Be creative. Remember that
referral events should be fun for current clients as well as leads.
Student answers will vary. Lists should include associations which host conventions, companies
located in the area, and so forth.
End of Chapter Role Play
For the Instructor
On the next three pages you will find the buyer role play sheets needed to complete this role play in class.
Debriefing for after the role plays:
As you debrief this role play, there are a couple of items you may want to discuss. One is whether or not
the seller has a prospect and if so, why? In most of these instances, the person they are talking to, at this
point, is not the decision maker so it is difficult to say they really have a prospect. You can foreshadow
some of the material on commitment in Chapter 11 by pointing
out that the only sale they can make is a recommendation to be considered at the next step. So ask, “If you
get that commitment, do you have a prospect?” Most would say yes, though really at most all you have is
a suspect. While the issue may seem like a fine line, most sales managers would probably wait until they
knew their product made the cut and was going to be one of the products considered by the buying center
before calling it a prospect.
Another point to consider is the importance of prospecting among current customers. You can foreshadow
elements in Chapter 14 like cross-selling and upselling here by pointing out how important it is to
continue to sell to current accounts, and that means doing some prospecting with them.
This role play also points out how marketing and sales can work together. Marketing can conduct
programs that supply leads for salespeople.
6-10
Education.
BancVue Buyer Role Play Information

Chapter 6 End of Chapter Role Play Case
As you respond to your seller’s questions, keep the answers brief and to the point. Encourage the seller to
develop questioning skills by not giving all of the information at once.
BancVue currently serves about 300 community banks across the country. Essentially, your company is
like an advertising agency except that your company has its own line of products (one is a loyalty
program, another is a credit card, and so forth) that you offer so it is much more than just advertising. But
advertising is one service you offer, as is sales and customer service training for bank staff, sales contest
management (for example, you’ll set up a contest for which tellers sell the most credit cards within a
single bank), and other marketing activities.
There are six salespeople in your region (there are 4 regions all together) who take care of about 80
accounts. You estimate that there are probably another 3000 that could use your services. You participate
in the American Banking Association’s annual meeting and buy their list of members for marketing
purposes.
The company does a lot of direct mail to marketing departments. If you get a 5% response rate, that is
considered a success. The reps are then given the leads and they telephone them. Reps also telephone
their own lists. They may buy lists, or they may simply call current accounts and ask for referrals.
Part of the challenge is also keeping up with current accounts. Your salespeople do the best they can, but
five banks each is a lot to manage. Some form of keeping in touch without too much effort on the part of
the rep is needed so that your customers will call when things change.
6-11
Education.
GelTech Buyer Role Play Information

You Your salespeople call on fire departments, and these don’t change very often. In commercial
buildings, the key decision makers are the architects who specify fire suppression systems and the general
contractors who build new buildings and these are also a fairly finite list – at least as far as the big ones
go. So your field salespeople aren’t really prospecting for new companies to sell, but rather looking for
new opportunities within current accounts. But your inside salespeople do a lot of prospecting for new
contractors, smaller builders, and property developers who are refurbishing existing buildings. They are
also prospecting heavily for the other chemical products you sell in the agriculture, golf course, and turf
management industries.
A big challenge is the communications between inside and outside salespeople handling the same
accounts. Knowing what to do next is always a challenge when an account is bouncing between an inside
and an outside salesperson.
6-12
Education.
HighPoint Solutions Buyer Role Play Information

The company does advertising in Today’s Accountant magazine, HR Professional magazine, and
Potentials in Human Resources magazine. From these ads, leads may visit the company’s website, then
ask for more information, or they may call and ask to see a rep. These leads go to the field, but sometimes
it takes a couple of weeks for the rep to get the lead. By then, the lead has often moved on to another
vendor who was more responsive.
The company does no direct mail campaigns on a regular basis. Probably once a year, the company might
purchase a mailing list and send out direct mail, but only if a new product or program is introduced. The
VP of sales and marketing would like to do more direct mail but doesn’t like buying lists because they
usually have so many inaccuracies that 20% or more of the mail-out comes back, and probably another
20% gets thrown out because the person is no longer there.
Salespeople do a lot of their own prospecting, and they do it in many different ways. They may do their
own direct mail, or they may use the telephone a lot. Some create special events of their own, such as
seminars, and use that to generate interest. They all use referrals – referrals are responsible for 15 to 25%
of all new accounts. Each rep needs to close at least one new account per month, and preferably two, in
order to grow the business.
Further, you don’t feel that many current accounts use your company’s services as much as they should.
Part of that is an education process. There are probably more good prospects for additional business
among current accounts than salespeople realize.
6-13
Education.
EXERCISE 6-1 ACTUAL PROSPECTING AND PRECALL ACTIVITIES OF A

SALESPERSON
Contact a salesperson and learn about how he or she prospects and gains precall information. Answer the
following questions.
1. Which prospecting methods provide the largest number of leads for him or her?
2. Which methods provide the greatest number of eventual sales?
3. What does he or she consider to be the characteristics of a good prospect?
4. How does he or she keep track of prospects?
5. What types of precall information does he or she normally attempt to obtain? Where does s/he get
that information?
6-14
Education.
Exercise 6-2 Linked In Exercise
First, join LinkedIn and complete your profile. Then answer the following questions, using the
various search tools available in LinkedIn.
1. Find a job in medical devices sales. Briefly tell me about that opening.
2. Find a job in sports marketing. Briefly tell me about that opening.
3. For the company Target answer the following questions.
A. How many employees do they have?

B. How many employees at Target are in your network?
C. Look at Popular Profiles for Target for the senior buyer. List his career path.
4. Find Bruce Popham who owns a boat yard. Where did he get his education?
5. Find Bernard Madoff. What can you find out about him? What is his title?
6. Find all people with the title of sales in your zip code. How many are there? Provide one
name.
6-15
Education.

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Chapter 06 - Prospecting

Selling Building Partnerships 9th Edition

Solution Manual: https://testbankpack.com/p/solution-manual-for-

Test Bank: https://testbankpack.com/p/test-bank-for-selling-

5. Summarize what you covered:

Suggested Answers to Ethics Problems

Suggested Answers to Questions and Problems

Student answers will vary.

Student answers will vary.

a. You belong to a Lions Club that needs to recruit new members.

b. You sell carpet cleaning services to businesses.

• Current customers (satisfied “customers”), if any, could identify prospects.

• Satisfied customers who have purchased your doors in the past.

• Follow up on inquiries to any advertisements you place in newspapers or magazines.

• Have telemarketers place calls to prospective leads.

b. A travel agency specializing in vacations to Chile.

c. A manufacturer of an antitheft deterrent device for blu-ray players.

Suggested Answers to Case Problems

Case 6-1: Federated Insurance

1. What should the salesperson do?

Case 6-2: Chicago Marriott Downtown Magnificent Mile

End of Chapter Role Play

For the Instructor

Debriefing for after the role plays:

BancVue Buyer Role Play Information

GelTech Buyer Role Play Information

HighPoint Solutions Buyer Role Play Information

EXERCISE 6-1 ACTUAL PROSPECTING AND PRECALL ACTIVITIES OF A

2. Which methods provide the greatest number of eventual sales?

3. What does he or she consider to be the characteristics of a good prospect?

4. How does he or she keep track of prospects?

Exercise 6-2 Linked In Exercise

2. Find a job in sports marketing. Briefly tell me about that opening.

3. For the company Target answer the following questions.

A. How many employees do they have?

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