Ch 5: Strategic Prospecting And Preparing For Sales Dialogue Flashcards
Salespeople who do not regularly prospect lose customers due to:
- Changes in market conditions
- Competitive activity
- Dissatisfaction with the product, the salesperson, or the selling firm
- Changes in buying behavior
Define strategic prospecting
A process designed to identify, qualify, and prioritize sales opportunities. (whether these opportunities represent potential new customers or opportunities to generate additional business from existing customers)
Explain the sales funnel (strategic prospecting process)
> generating sales leads: these are organizations or individuals who might possibly purchase the product or service
> determining sales prospects: search for, collect, analyze and use various types of screening procedures to determine if sales lead is really a good sales prospect (qualifying sales leads)
> prioritizing sales prospect: salespeople prioritize their sales prospect to ensure that they spend most of their time on the best opportunities (create an ideal customer profile and analyze sales prospects)
> preparing for sales dialogue: prepare for the initial contact with the sales prospect by planning the sales dialogue and acquiring additional information
> remaining stages in the trust based sales process
What are the various prospecting methods
- Cold canvasing
- Networking
- Company sources
- Commercial sources
Explain the prospecting method: cold canvasing
Cold Calling: contacts a potential customer who has not expressed interest in the product or service beforehand. The goal is to introduce the product and see if the customer is interested.
Referrals: salesperson gets a recommendation from an existing customer or a trusted source to contact a potential buyer. Referrals are valuable because the prospect is more likely to trust the salesperson since they come from someone they know.
Introductions: when someone (mutual connection) introduces the salesperson to a potential customer, the person making the introduction often vouches for the salesperson, making the prospect more likely to listen
Explain the prospecting method: networking
Centers of Influence: people who have strong connections in a specific industry or community and can help influence potential customers. Salespeople build relationships with these individuals to get introductions or referrals to new leads
Noncompeting Salespeople: salespeople who sell different products or services that don’t compete with yours. They can be valuable partners because they might refer customers to you if your product complements theirs
Social Media: refers to platforms like LinkedIn, Facebook etc. that salespeople use to connect with potential customers, build relationships, share content, and generate leads.
Explain the prospecting method: company sources
Company Records: records the company keeps about past customers, sales, and interactions, that salespeople use to identify potential leads or follow up with existing customers.
Example: Looking through the company’s database to find customers who bought a product last year and might need a new one.
Advertising Inquiries: leads that come from people who have responded to advertisements and are interested in learning more about the product or service.
Example: Someone calls after seeing an online ad for a product
Telephone Inquiries: customers or potential leads who call the company to inquire about a product or service.
Example: A customer calls asking about the features of a new phone
Explain the prospecting method: commercial sources
Trade Shows: events where companies showcase their products or services to potential customers and partners in a specific industry.
Example: A tech company attends a trade show to display its new gadgets and network with potential buyers.
Seminars: educational events where salespeople present information about their product or industry to a group of potential customers.
Example: A salesperson hosts a seminar to educate businesses about the benefits of a new software program
What are the components of a strategic prospecting plan
set goals - establish daily, weekly, and monthly quotas for acquiring new prospects
allocate time - establish a regular daily schedule for conducting prospecting activities
keep records - track your results from using the different prospecting methods
stay positive - develop confidence by knowing your product and believing that you offer the best solutions
evaluate - what is working for you? compare results and use the methods that work best for you
Name the types of information sales people need to prepare for sales dialogue
- basic information about the buyer and company
- information about the selling situation
- sources of information
What is the basic information about the buyer and company
> About the buyer
- Buyer’s name, title, and contact information
- Educational and work background
- Community and organizational involvement
- Hobbies and interests
- Communication style
> About the company
- Type of business
- History of business
- Number of employees
- Target market served
- Products and services offered
- Key competitors
- Current strategy and performance
Define the sales funnel or pipeline
A representation of the trust-based sales process and strategic sales prospecting process in the form of a funnel
What are the characteristics of a sales prospect
- has a need for the product or service
- has the budget or financial resources to purchase the product or service
- has the authority to make the purchase decision
Differentiate between outbound and inbound telemarketing
Inbound telemarketing: happens when customers call into the company in response to ads or marketing campaigns, and a salesperson helps them with their inquiry or offer.
Example: A customer calls a toll-free number to inquire about a special offer on a subscription service.
Outbound telemarketing: when salespeople call potential customers directly, typically to promote products or services, without the customer initiating the call.
Example: A salesperson calls a list of leads to offer a discount on a new service
