The chapter discusses the importance of prospecting for salespeople. It states that people are more likely to buy from those they know and trust, so relationship building is key. Prospecting involves finding and qualifying potential customers. Referrals from existing customers are very valuable as they reduce the burden of prospecting. The document provides an overview of different prospecting methods like cold calling, networking, and utilizing centers of influence. It also discusses obtaining sales interviews and the importance of overcoming call reluctance to continue prospecting.

1. BMGT 204: Sales Strategies and Techniques
Chapter 6: Prospecting: The Lifeblood of Selling

2. The Golden Rule: Prospecting
•
People buy from those they know and trust
•
Prospecting is not easy unless you focus on helping, not
selling
•
People who trust you give referrals
•
Referrals take the burden of prospecting off the
salesperson
•
Referrals are earned through integrity, trust, and character

3. 1. Prospect/Customer
2. Preapproach/Planning
3. Approach
The sales process is a
sequential series of
actions
4. Presentation
•Product SELLs
•Marketing Plan SELLs
•Business Proposition SELLS
5. Trial close
6. Determine objections
7. Meet objections
8. Trial close
9. Close
10. Follow-up & Service

4. Compensation for the
Salesperson that Prospects is
Often:
•
Based upon 100% commission
– if you do not sell, you do not
earn
•
Can be lucrative but highly
competitive

5. Some Prospect,
Some Do Not
•
Many organizations do not
prospect
•
Examples are large consumer
goods firms as General Mills*
and Colgate*

6. Compensation for the
Salesperson that Does Not
Prospect is Often:
•
Based upon mostly salary with
a small bonus and expenses
such as car and office supplies
paid
•
If you do not sell you still get
paid, but not for very long

7. The Prospector Has the Most Challenging Sales
Career
•
This is the “order getter” who:
•
•
Converts the lead into a prospect
•
Sells one day, and
•
•
Finds a lead
Sells in the future too
That is a challenge

8. Steps Before the Sales Presentation
•
Prospecting > appointment > planning
•
Rule of thumb
•
40% preparation
•
20% presentation
•
40% follow-up

9. Prospecting
Obtaining an appointment
Preapproach planning
Exhibit 6.2: Before the
Sales Presentation

10. Prospecting–The
Lifeblood of Selling
•
Prospect – qualified person
•
Prospecting – Identifies
potential customer
•
Lead – only know name

11. The Leaking Bucket
Customer Concept
•
All salespeople lose X amount
of sales and customers per
year. This is illustrated in the
Leaking Bucket Customer
Concept:
•
Customers come into the top
and leave through a hole in the
bottom

12. Planning a
Prospecting Strategy
•
Prospecting requires a strategy
•
A skill that can be constantly
improved

13. http://www.youtube.com/watch?v=RmOcFund1AM

14. Prospecting Methods
•
E-prospecting on the Web
•
Individuals
•
Organizations
•
Cold canvassing
•
Endless chain – customer referral
•
Orphaned customers
•
Sales lead clubs

15. Prospecting Methods, cont…
•
Prospect lists
•
Become an expert – get published
•
Public exhibitions and demonstrations
•
Center of influence
•
Direct mail
•
Telephone and telemarketing
•
Observation
•
Networking

16. Exhibit 6.5: The Processing
System Within a
Telemarketing Center

17. Prospecting Guidelines
•
Three criteria are:
•
•
Concentrate on high potential customers
•
•
Customize to each prospect
Call back on no-buys
Always keep knocking on prospect’s and customer’s
door to help them

18. Referrals Are Used in Most
•
Prospecting Methods
•
Cold canvassing
•
Endless chain customer referrals
•
Orphaned customers
•
Sales lead clubs
•
Public exhibitions and demonstrations
•
Center of influence
•
Telephone
•
Networking

19. The Prospect Pool
Leads
Referrals
Orphans
Your customers

20. The Referral Cycle
•
Obtaining referrals is a continuous process without beginning or end
•
•
The parallel referral sale
•
Sell the product to person
•
•
Referral cycle – when and how to ask for referrals
Obtain prospect name(s) from person
The secret is to ask correctly during referral cycle
•
The preapproach contact phase
•
The presentation
•
Product delivery contact phase
•
Service and follow-up contact phase: Customer service

21. Exhibit 6.8: The Referral
Cycle:
When to Ask for Referrals

22. Treat the Referral Like a Customer
•
Once you have sold the referral, and gotten more
referrals, ask the new customer to contact the referring
customer on her experience with the salesperson
•
Now you have two customers giving referrals
•
This can create an endless chain of referrals quickly filling
your prospect pool with only customers and referrals
•
Now, no more cold calling

23. Don’t Mistreat the Referral
•
Mistreatment can have a ripple effect
•
The mistreated referral tells your customer – you may
lose both!
•
Remember to follow the Golden Rule

24. Call Reluctance Costs You Money!
•
Call reluctance refers to not wanting to contact a
prospect or customer
•
For many salespeople, owning up to call reluctance is the
most difficult part of combating it
•
Call reluctance keeps you from:
•
Helping others
•
Earning what you’re worth

25. Obtaining the Sales Interview
•
Key factor in selling process is obtaining a sales interview
•
The benefits of appointment making
•
Telephone appointment
•
Personally making the appointment
•
Believe in yourself
•
Develop friends in the prospect’s firm
•
Call at the right time on the right person
•
Do not waste time waiting