MKTG 160 CH9
What is prospecting?
- identifying and developing potential cutomers
Causes of customer attrition
-One-time need -Movement outside of territory -Customer business failure or merger -Buyer employee changed positions -Competition gained customer
three things to improve the quality of the prospecting effort
1. increase the number of people or accounts who board the Ferris wheel 2. improve the quality of the prospects who board the Ferris Wheel 3. shorten the sales cycle by quickly determining which of the new prospects are qualified prospects- qualified as to need, authority to buy, ability to pay, and authority to purchase the product
elevator presentations
30 second message that summarizes you, your company, and your product line
Which of the following terms refers to the cold call method of summarizing, in a 30-second message, what you want people to know about you, your company, and your product line?
Elevator presentation
sales intelligence
Gives salespeople access to insights into the prospects' marketplace, their firm, their competitors, even about the prospects themselves.
__________________ refers to the art of making and using contacts, or people meeting people and profiting from the connection.
Networking
To effectively and efficiently manage the prospect or account base, salespersons often conduct a(n) _______________ analysis to estimate the sales potential for each prospect.
account
In business-to-business (B2B) selling, the process of identifying potential customers is referred to as __________________________.
account or business development
Salespersons and sales managers often conduct ________ analysis to help them effectively and efficiently manage the prospect or account database.
an account
Who is a prospect?
an individual or business who meets the qualification criteria established by you or your company
Identifying prospect needs, authority to buy, financial resources to buy, and willingness to buy are fundamental to ___________________________.
basic quality criteria
Companies such as Salesforce.com, Oracle, NetSuite, Sage, and Microsoft offer software applications designed to _____________________.
collect and organize prospect information
Ferris Wheel Model
concept which is aimed at supplying an ongoing list of prospects, is part of world-sales record holder Joe Girard's customer strategy As people get off the Ferris wheel, the operator fills their seats one at a time, moves the wheel a little, and continues this process until all the original riders have left the wheel and new ones come aboard. With the passing of time, many customers must be replaced
what are Account or Business Development Representatives in Business-to-Business responsible for?
engaging with key influential contacts and qualifying sales opportunities
Often, the type of leads known as referrals result in________________.
higher close rates, larger sales and shorter sales cycles
sales process model
is the total set of accounts being pursued at any given time.
The type of information that the salesperson can use to turn prospects and accounts into long-term customers includes ________.
knowing more about the customer than just name and title; knowledge about the prospect's company and market place; and knowing how to bring value-adds to them
Many sales organizations link the qualifying process with the ___________ in the consultative sales process.
need discovery step
three types of networks salespeople should grow and nurture
networking within your organization, within your industry, and outside your industry
According to Gerhard Gschwandtner, publisher of Selling Power, the main purpose of a salesperson is ________.
not to make sales, but to create customers
The process of managing all the prospects in the salesperson's sales funnel is called ________management.
pipeline
Prospect, Qualified, Need Analysis, Presentation, Negotiations, and Closed/Service are six steps included in the ______________________.
portfolio model
Salespersons are often tasked with determining which sales strategies to use. The two popular models of analysis they use are the ________.
portfolio model and the sales process model
An excellent way of identifying, locating, and profiling your prospects is to analyze your ________.
product and current customers
________ is the lifeblood of selling.
prospect identification
The evaluation and qualifying process is normally the first opportunity salespeople have to consider ________.
prospect needs and how they match with your product characteristics
what steps does this model include?
prospect, qualified, needs analysis, presentation, negotiations, and closed/service
In the terminology of personal selling, the process of identifying and developing potential customers is referred to as ____________________ in business-to-consumer (B2C) selling.
prospecting
You identify, locate, and profile your ___________ by analyzing your product and current customers.
prospects
The ability to ________ is one of the most important keys to success in personal selling.
qualify leads
Prospecting techniques produce a list of names that must be evaluated using criteria developed by each salesperson. The process of prospect evaluation is called ________.
qualifying
Prospecting techniques produces a list of names that must be evaluated using criteria developed by each salesperson. The process of prospect evaluation is called ________.
qualifying
Which of the following terms refers to a prospect that has been recommended by a current customer or by someone familiar with the product?
referrals
_______________ data is the prospect information seen in most CRM systems, including the contact name, title, address, phone number, e-mail, and any past purchases.
sales
Common methods of collecting and organizing prospect and account information include ________.
sales force automation systems or customer relationship management systems.
________ is the type of information that goes beyond sales data such as the marketplace, a prospect's company, and even the prospects themselves.
sales intelligence
________________ goes beyond data, providing the salesperson access to insights into the prospects' marketplace, their firm, their competitors, even about the prospects themselves.
sales intelligence
The __________________, also referred to as "sales funnel model," classifies prospects based on where they are in the sales process.
sales process model
Cold Calling
salespeople select a group of people they believe will make good prospects and then call upon them (by phone or personal visit) - cold calls rely upon "elevator presentations"
what does account analysis enable?
salespeople to estimate the sales potential for each prospect
The type of leads that result in the highest close rates, largest sales, and shorter sales cycles are leads ________.
that have been referred
An important aspect of ________ is identifying and developing potential customers.
the customer strategy
When a salesperson identifies and develops potential customers, it is an important part of ________.
the customer strategy
What is customer attrition?
the inevitable loss of customers over a period of time, which can be attributed to a variety of causes
sales data
the information seen in most CRM systems, including the contact name, title, address, phone number, email, and so forth. may also include information about what products have been purchased, what sales opportunities exist in the future, who the various members or influencers are in the buying center, what their preferred communications style are, past sales and forecasted sales, volume, and percentage change and date of closing the sale
What is the main purpose of a salesperson according to Gerhard Gschwandtner, of Selling Power?
the main purpose is not to make sales, but to create customers
Qualifying Prospects
the process of identifying prospects who appear to have a need for your product and should be contacted
pipeline management
the process of managing all the prospects in the salesperson's sales funnel to ensure that sales objectives are being met
why do salespeople use CRM systems?
to help them organize their prospecting information The information in the report includes notes about previous sales calls and salespeople can access this information to be prepared for meetings.
account analysis
used to estimate the sales potential for each prospect
what does the portfolio model use?
uses account opportunity (forecasted sales) and competitive position (the ability to capitalize on the opportunity) to classify how much sales effort should be made on individual accounts in the prospect database. Those prospects listed in the strategic accounts cell (high sales forecast and strong position for closing the sale) will receive the largest amount of sales effort, while those in the drag accounts cell will receive little, if any, attention
social network
your set of direct and indirect contacts. An indirect contact might be the brother of a close friend
Qualifying Questions
•Does the prospect or account •have a need for my product? •have the authority to buy my product? •have the financial resources to buy my product? •have the willingness to buy my product?
Position Description account development representative
•Drive sales opportunities by staging introductory sales meetings, product demonstrations, and on-site meetings for the field sales organizations •Work an assigned enterprise account list •Proactively identify revenue-generating customers via email campaigns and outbound phone calls •Collaborate with marketing, support, sales management, product management, and account management to maintain an effective level of prospecting activity and pipeline growth
Prospects with social media
•LinkedIn •Twitter •FollowerWonk •TweetDeck •HootSuite •SproutSocial
identifying good referrals
•Meet as many people as you can •When you meet someone, tell them what you do •Do not do business while networking •Offer your business card •Edit your contacts and follow-up
Sources of prospects
•Referrals •Friends and family •Directories •Trade publications •Trade shows •Direct-response marketing •Website •Databases •Cold calling •Networking •Educational seminars •Non-sales prospecting
