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Agenda

Recap
Chapter 2
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Recap

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Chapter 2
Prospecting and Qualifying

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Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
 Learning Objectives

LO 2-1 Describe the importance of prospecting, the challenges associated with

prospecting, and why many salespeople are hesitant to prospect.
LO 2-2 Contrast the hunting and farming sales orientations, and explain the
role inside sales can play in prospecting.
LO 2-3 List the steps in the prospecting process and the necessary
requirements for a lead to be qualified as a prospect.
LO 2-4 List common lead-generation methods.
LO 2-5 Explain the activities involved in formulating a prospecting strategy.
LO 2-6 Explain the importance of salesperson ethics in prospecting for new
customers.

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 Sales Prospecting

The process
through which
salespeople
identify and
engage with
customers or new
areas of business
with existing
customers.

5
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 An Introduction to Prospecting 1

The Importance of Prospecting

1. Goal is to sell more to existing customers and identify and engage
new ones.
2. Produces a continuous flow of customers and business
opportunities.
3. Ensures the attainment of sales goals, called quotas.
4. Helps offset the inevitable attrition.

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 Challenges with prospecting
1. Time
consuming
2. Success rate of
10 percent is
considered
good. (If after
10 attempts you
have 1
customer)
3. Buyers are
hesitant to explore
the possibility they
need the product or
service.
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 Salespeople are hesitant to prospect

Why Salespeople Are Hesitant to Prospect?

Rejection, emotional toll that can be demoralizing.
• Can result in call reluctance.
• Prospecting requires repetition, consistency, and persistence.

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Time Allocation Imbalance: Customer Acquisition versus
Customer Retention

Access the text alternative for slide images.

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 Figure 2-2 The Prospecting Process

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 Lead Generation

1) Process of finding the ideal customer and engaging with them with
the intention to make the sale.
2) In B2B sales this often requires salespeople to set up meetings with
potential clients

Think of prospecting as going into the market to find a product you are looking for
Think of lead generation as shortlisting products and evaluating them while trying
to decide if they are the right products for you.

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 The Prospecting Process 2

Lead Generation
• A lead indicates the
possibility they may be
qualified as a prospect.
• Does not guarantee the
individual or organization has a
need for the product or service.

© McGraw Hill LLC antonioguillem/123RF 13

 Lead-Generation Methods 1

• Virtual networking are networking activities that occur online.

• Social selling can be beneficial throughout every stage of the selling process.

• Use LinkedIn to connect digitally with interesting people you meet in the real
world.

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 Lead-Generation Methods 2

Traditional Networking
• Face-to-face communication.
• Provides a way for salespeople to spread their individual and company brand
awareness.

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 Lead-Generation Methods 4

Trade Shows (B2B)

• Industry-specific events designed to
bring selling companies and customers
face to face.
• Selling companies offer trade-show
promotions to encourage customer
purchases.
• Prospects proactively approach the
selling companies.
• Conversion rates are higher.

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 Lead-Generation Methods 3

Referrals
• Leads provided by existing customers are beneficial:
• Potential customers tend to be more receptive to salespeople who are reaching out based on
the suggestion of another customer.
• Existing customers can identify other businesses who might benefit from its products or
services.

• Conversion rates (the number of leads that become actual customers) are
usually higher.

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 Lead-Generation Methods 5

Cold-Calling
• Unsolicited call or visit by a salesperson.
• Common practice in B2B markets.
• The percentage of firms relying on cold-calling as sole lead-generation method
has dropped.

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 Lead-Generation Methods 6

Websites Social Directories

• Buyers begin sales process on
seller’s website.
• Selling firms can capture buyer’s
information and forward it to the
salesperson to act on it.
• Need to move quickly.
• Lists of leads compiled by third
parties.
• Provides a large number of leads.
• Difficult to go through with low
conversion rates.

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 Lead-Generation Methods 7

Centers of Influence
• Salespeople build relationships with individuals who hold influential positions
and can gain access to the group.
• The salesperson may have to sponsor an event, financially support the group,
or do something else to justify access.

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 Lead-Generation Methods 8

Noncompeting Salespeople
• There is a bond among salespeople.
• Noncompeting salespeople can be a valuable resource:
• They sell different products to the same types of customers.

• There is an expectation that the favor will be returned.

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 Tips for Sales Prospecting

Take notes during the following video

Class Activity:
Share at least 2 things you just learned

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 Matching Personal Strengths to Prospecting Roles 1

Hunting and Farming Sales Orientations

• Hunting orientation focuses on securing new customers.
• Through lead generation, prospecting, pre-call planning, delivering sales
presentations.

• Farming orientation focuses on selling to existing customers.

• By building long-term relationships.

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 The Prospecting Process 3

Lead Prioritization
Once all the leads are collected it’s important to select which one is
more important so you act more efficiently.
• Inbound leads: The buyer initiates the interaction with the firm. (Maybe a
friend or colleague referred them to the salesperson)
• The likelihood of success is much higher.

• Outbound leads: The firm proactively contacts the lead.

• Hot lead shows some level of interest in the product or service.
• Cold lead does not show any interest

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 Lead Qualification

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 Figure 2-3 Lead-Qualification Questions

Access the text alternative for slide images.

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 Prospect Prioritization

Qualified leads who pass the lead qualification stage and then passed
on to the prospect prioritization stage
These are your ideal customers who have the budget, the authority,
the need and the time to buy your product.
They also fit into your ideal customer profile

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 Sales Call Planning

The last step is the sales call planning. This is where you plan to
interact with the customer to tell them about your product and close a
sale

The SPIN Selling methodology helps at this stage (Will be discussed

in future lessons)

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 Figure 2-6 A Prospecting Strategy

Access the text alternative for slide images.

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 Ethics in Prospecting

Four Key Ethical Standards

• Be honest whether a need truly exists.
• Be factual in communications.
• Be factual when providing information about the competition.
• Be careful to manage the integrity of the referral process.

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 End of Main Content

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