Prospecting 

• process of locating potential customers for a product/service  
• must find new customers to replace current that switch to competitors, go bankrupt, move out of territory, merge with noncustomers, or decide to do without product/service
• MOST IMPORTANT ACTIVITY salesperson does
• b/c world is constantly changing  
• Lead vs. Prospect

Relationship between the Steps in the Selling Process and the the Designation of the "Buyer"

6 characteristics of a good prospect

• Does a want/need exist?
• cust. want to satisfy both practical and intangible needs as well. 
• Does the lead have ability to pay?
• client is not a real prospect without resources to pay for the product 
• ability to pay includes both cash & credit 
• Does lead have authority to buy? 
• knowing this saves the salesperson time and effort and results in a higher percentage of closed sales
• Can lead be approached favorably? 
• some prospects may not be accessible
• Is the lead eligible to buy?
• Volume 
• Geographic location
• "house accounts"
• Other Criteria
• Timing of Purchase
• LT customer potential

Satisfied Customers

• current & previous customers are contracted for additional business & leads
• MOST EFFECTIVE SOURCE for leads
• Keep in touch

Satisfied customers

How to Maximize Usefulness?

• make a list of potential references from among most satisfied customers
   
• Decide how each customer can help
   
• ask for names of leads and the specific type of help needed

Satisfied Customers

Referral events

Satisfied Customers

Selling Deeper

- Additional sales to

satisfied customers

who provide leads

Endless- chain method

• sales rep's attempt to get at least one additional lead from each person they interview
• works best when sources is a satisfied customer and partner 

Networking

- establish connections to other people and then using those networks to:

• generate leads
• gather information 
• generate sales, etc...

5 Practical Suggestions for Networking 

• call at least - 2 people - per day - 
• go to at least - 1 networking event - per week - 
• Learn about prospect's business & nonbusiness interests 
• Thank your contacts for leads
• Follow up with new contact on regular basis

Networking 

Center of Influence 

• Salesperson cultivates well-known, influential people in the territory who are willing to supply lead information 
   
• buying community 
• may never buy 

Finding Prospecting information via.

Social Media 

• prospect's website
• linkedin/twitter/youtube/slideshare/facebook

Ads and Direct Mail 

Ads & Direct Mail

Postcard Pack

Ads & Direct Mail

Bounce-back Card

Shows, fairs, & merchandise markets

tradeshows: all attendees are customers - lead generation

• In some industries, almost all sales to resellers occur 'during' markets

Seminars & Webinars

• use both for prospects to generate leads 
• appeal to a specialized market
• invite only good prospects
• go high-quality
• be involved before, during, and after 

Lists & Directories

• secondary data sources - can be free or fee-based
• SIC
• NAICS
• Purchasing Lists

Data Mining

Cold Calling

• generate leads by calling on totally unfamiliar organizations
   
• Blitz

Spotters 

- salesperson pays someone for lead information

also called BIRD DOGS

Telemarketing

• systematic & contiuous program of communicating with customers and prospects via telephone

Telemarketing 

Outbound Telemarketing

Telemarketing

Inbound Telemarketing

How can a salesperson

become an expert?

- public speaking - writing journal articles

Sales Letters 

• Salesperson writes letters to potential leads
   
• follow up with telephone call
   
• include promotional items

Other Source of Leads

• personal observation
• nonsales employees within the salesperson's firm 
• goverment agencies 
• clubs
• other salespeople
• trade assoications
• volunteer activities

Lead qualification &

management systems

• prequalification 
   
• analyzing lead value
   
• evaluating profitability of sales resulting from lead-generating activities

Reasons for Reluctance to Prospect 

• Worrying about worst-case scenarios
   
• being overly concerned with looking successful
  
  
• being fearful of making group presentations, appearing too pushy, losing friends or family approval, and using the phone for prospecting  

What are some ways you can overcome reluctance to prospect?

• identify & evaluate excuses not to call
• engage in sales training and role-playing activities 
• make prospecting contacts with a supporting parter or sales manager
• set specific goals for all of your prospecting activity
• realize the economic value of most prospecting activities
• stop negative self-evaluation from ruling your behavior
• remember you are calling on prospects to solve their needs
• control your perceptions of what prospects might say about you, your company, or your products
• learn and apply relaxtion and stress-reducing techniques
• recount your own prospecting successes or those of others