Chapter 7


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Chapter 7

  1. 1. Ch. 7 Prospecting—The Lifeblood of Selling Chapter 7 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
  2. 2. Exhibit 7-1: The Selling Process Has 10 Important Steps 10. Follow-up 9. Close 8. Trial close 7. Meet objections 6. Determine objections 5. Trial close 4. Presentation 3. Approach 2. Preapproach/planning 1. Prospecting The sales process is a sequential series of actions
  3. 3. Some Prospect, Some Do Not <ul><li>Many salespeople prospect, both those selling business-to-business and those selling to consumers </li></ul><ul><li>Examples are: </li></ul>
  4. 4. Compensation for the Salesperson who Prospects is Often: <ul><li>Based upon 100% commission – if you do not sell, you do not earn </li></ul>
  5. 5. Prospecting–The Lifeblood of Selling <ul><li>Qualified prospect is MAD </li></ul><ul><ul><li>M </li></ul></ul><ul><ul><li>A </li></ul></ul><ul><ul><li>D </li></ul></ul>
  6. 6. Exhibit 7-2: Before the Sales Presentation
  7. 7. Steps Before the Sales Presentation <ul><li>Prospecting > appointment > planning </li></ul><ul><li>Rule of thumb </li></ul><ul><ul><li>40% </li></ul></ul><ul><ul><li>20% </li></ul></ul><ul><ul><li>40% </li></ul></ul>
  8. 8. Prospecting–The Lifeblood of Selling <ul><li>Prospect – </li></ul><ul><li>Prospecting – </li></ul><ul><li>Lead – </li></ul>
  9. 9. Where to Find Prospects <ul><li>Persons selling different services and goods might not use the same sources </li></ul>
  10. 10. Planning a Prospecting Strategy <ul><li>Prospecting requires a strategy that can be constantly improved </li></ul>
  11. 11. Prospecting Methods <ul><li>E-prospecting on the Web </li></ul><ul><ul><li>Individuals </li></ul></ul><ul><ul><li>Organizations </li></ul></ul><ul><li>Cold canvassing </li></ul><ul><li>Endless chain – customer referral </li></ul><ul><li>Orphaned customers </li></ul><ul><li>Sales lead clubs </li></ul>
  12. 12. Prospecting Methods, cont… <ul><li>Prospect lists </li></ul><ul><li>Become an expert – get published </li></ul><ul><li>Public exhibitions and demonstrations </li></ul><ul><li>Center of influence </li></ul><ul><li>Direct mail </li></ul><ul><li>Telephone and telemarketing </li></ul><ul><li>Observation </li></ul><ul><li>Networking </li></ul>
  13. 13. Prospecting Guidelines <ul><li>Three criteria are: </li></ul><ul><ul><li>Customize </li></ul></ul><ul><ul><li>Concentrate </li></ul></ul><ul><li>Always keep knocking on prospect’s and customer’s door to help them </li></ul>
  14. 14. Exhibit 7-7: Components of the Prospect Pool
  15. 15. The Referral Cycle <ul><li>Obtaining referrals is a continuous process without beginning or end </li></ul><ul><li>Referral cycle – when and how to ask for referrals </li></ul><ul><li>The parallel referral sale </li></ul><ul><ul><li>Sell </li></ul></ul><ul><ul><li>Obtain </li></ul></ul>
  16. 16. The Referral Cycle, cont… <ul><li>The secret is to ask correctly during referral cycle </li></ul><ul><ul><li>The </li></ul></ul><ul><ul><li>The </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Service and follow-up contact phase: Customer service </li></ul></ul>
  17. 17. Don’t Mistreat the Referral <ul><li>Mistreatment can have a ripple effect </li></ul><ul><li>The mistreated referral tells your customer – you may lose both! </li></ul><ul><li>Remember to follow the Golden Rule </li></ul>
  18. 18. Treat the Referral Like a Customer <ul><li>Once you have sold the referral, and gotten more referrals, ask the new customer to contact the referring customer about her experience with the salesperson </li></ul><ul><li>Now you have two customers giving referrals </li></ul><ul><li>This can create an endless chain of referrals quickly filling your prospect pool with only customers and referrals </li></ul>
  19. 19. Call Reluctance Costs You Money! <ul><li>Call reluctance refers to not wanting to contact a prospect or customer </li></ul><ul><li>For many salespeople, owning up to call reluctance is the most difficult part of combating it </li></ul>
  20. 20. The 12 Faces of Call Reluctance, cont.. 1. Yielder - Fears intruding on others or being pushy 2. Overpreparer - Overanalyzes, underacts 3. Emotionally unemancipated - Fears loss of family approval, resists mixing business and family 4. Separationist - Fears loss of friends, resists prospecting among personal friends 5. Hyper-pro - Obsessed with image, fears being humiliated 6. Role rejecter - Ashamed to be in sales
  21. 21. The 12 Faces of Call Reluctance, cont… 7. Socially self-conscious - Fears intruding on others or being pushy. Intimidated by upmarket customers. 8. Doomsayer - Worries, won’t take risks 9. Telephobic - Fears using the telephone for prospecting or selling 10. Stage fright - Fears group presentations 11. Referral aversions - Fears disturbing business or client relationships 12. Oppositional reflex - Rebuffs attempts to be coached
  22. 22. The 12 Faces of Call Reluctance: How to Conquer the Fear
  23. 23. Obtaining the Sales Interview <ul><li>Key factor in selling process is obtaining a sales interview </li></ul><ul><li>The benefits of appointment making </li></ul><ul><ul><li>Personally making the appointment </li></ul></ul>