fundamentals of selling: selling thru value1

sales management

1. 7-1

2. Prospecting – The
Lifeblood of Selling
McGraw-Hill/Irwin
Fundamentals of Selling, 10/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
7

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7-3

4. 7-4
Main TopicsMain Topics
The Tree of Business Life:
Prospecting
The Sales Process Has 10 Steps
Steps Before the Sales Presentation
Prospecting—The Lifeblood of Selling
Where to Find Prospects
Planning a Prospecting Strategy

5. 7-5
Main TopicsMain Topics
Prospecting Methods
Prospecting Guidelines
The Referral Cycle
Call Reluctance Costs You Money!
Obtaining the Sales Interview
Wireless E-mail Helps You Keep
in Contact and Prospect

6. 7-6
The Tree of Business Life:
Prospecting
Guided by The Golden The Golden
RuleRule, remember:
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
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7. 7-7
Exhibit 7-1: The Selling Process
Has
10 Important Steps
10. Follow-up10. Follow-up
9. Close9. Close
8. Trial close8. Trial close
7. Meet objections7. Meet objections
6. Determine objections6. Determine objections
5. Trial close5. Trial close
4. Presentation4. Presentation
3. Approach3. Approach
2. Preapproach/planning2. Preapproach/planning
1. Prospecting1. Prospecting
The sales process
is a sequential
series of actions

8. 7-8
Some Prospect, Some Do Not
Many salespeople prospect, both those
selling business-to-business and those
selling to consumers
Examples are:
Financial services as life insurance
Real estate

9. 7-9
Compensation for the Salesperson
that Prospects is Often:
Based upon 100% commission – if you do
not sell, you do not earn

10. 7-10
Some Prospect, Some Do Not,
cont…
Many organizations do not prospect
Examples are large consumer goods firms
as General Mills* and Colgate*
* products and associated images used for illustrative purposes only

11. 7-11
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

12. 7-12
The Prospector Has the Most
Challenging Sales Career
This is the “order getter” who:
Finds a lead
Converts the lead into a prospect
Sells one day, and
Sells in the future too
WOW! That is a challenge

13. 7-13
Steps Before the Sales
Presentation
Prospecting > appointment > planning
Rule of thumb
40% preparation
20% presentation
40% follow-up

14. 7-14
Exhibit 7-2: Before the Sales
Presentation

15. 7-15
Prospecting–The Lifeblood of
Selling
Prospect – qualified person
Prospecting – Identifies potential customer
Lead – only know name

16. 7-16
Prospecting–The Lifeblood of
Selling
Qualified prospect is MAD
Money to buy?
Authority to buy?
Desire to buy?
Sales Prospecting Funnel
All leads and prospects must be considered
and filtered through the MAD process before
they become qualified prospects

17. 7-17
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

18. 7-18
Where to Find Prospects
Sources may be varied or few
Persons selling different services and
goods might not use the same sources

19. 7-19
Planning a Prospecting
Strategy
Prospecting requires a strategy
A skill that can be constantly improved

20. 7-20
Exhibit 7-4: Prospecting Methods that
Work!

21. 7-21
Prospecting Methods
E-prospecting on the Web
Individuals
Organizations
Cold canvassing
Endless chain – customer referral
Orphaned customers
Sales lead clubs

22. 7-22
Prospecting Methods, cont…
Prospect lists
Become an expert – get published
Public exhibitions and demonstrations
Center of influence
Direct mail
Telephone and telemarketing
Observation
Networking

23. 7-23
Exhibit 7-5: The Processing System
Within a Telemarketing Center

24. 7-24
Exhibit 7-6: Reports From a Telemarketing Center to
Other Marketing Groups Within the Firm

25. 7-25
Prospecting Guidelines
Three criteria are:
1.Customize to each prospect
2.Concentrate on high potential customers
fruit
3.Call back on no-buys
Always keep knocking on prospect’s and
customer’s door to help them

26. 7-26
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

27. 7-27
The Prospect Pool
Leads
Referrals
Orphans
Your customers

28. 7-28
Exhibit 7-7: Components of the
Prospect Pool

29. 7-29
The Referral Cycle
Obtaining referrals is a continuous process
without beginning or end
Referral cycle – when and how to ask for
referrals
The parallel referral sale
Sell the product to person
Obtain prospect name(s) from person

30. 7-30
The Referral Cycle, cont…
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

31. 7-31
Exhibit 7-8: The Referral Cycle:
When to Ask for Referrals

32. 7-32
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

33. 7-33
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

34. 7-34
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

35. 7-35
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

36. 7-36
Wireless E-Mail Helps you Keep in
Contact and Prospect
Wireless E-mail helps keep the sales
representative mobile.

37. 7-37
Summary of Major Selling
Issues
The sales process involves a series of
actions beginning with prospecting for
customers
Find prospects to contact
Obtain appointments
Plan the entire sales presentation

38. 7-38
Summary of Major Selling Issues,
cont…
Popular prospecting methods
Cold canvas
Endless chain methods
Public exhibitions and demonstrations
Locating centers of influence
Direct mailouts
Telephone and observation
Salesperson must develop ways of getting
to see the prospect