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Preliminary Steps in the Selling Process

Chapter 4

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Chapter Overview

Basic steps in personal selling process Common sources of prospects MAN concept for qualifying a prospect Pre-approach activities before selling Sequence of call planning activities needed to

prepare for a sales call.

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PROSPECTING

Salespeople must seek out potential customers. Two major activities are involved in prospecting:

1. Identifying potential customers (sales lead)

2. Qualifying them to determine if they are valid prospects.

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1. Identifying Potential Customers

Sales training should be directed towards helping new salespeople improve the efficiency of prospecting.

Successful sales people develop a strategy for prospecting that involves an organized and active system for generating sales lead.

One approach is Networking is an active process of acquiring new contacts and cultivating existing ones.

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Target market

Determine the type of person or organization that is more likely to purchase a given good or service. Market researchers, product manages, market

planners, and sales managers can help the sales person to define the target market.

A market survey is also used to learn more about target market.

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2. Qualify the Prospect

Making sure that the customer:

Has a need for that product or service desire to buy Has the financial resources to buy Has the decision making authority.

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QUALIFYING PROSPECTS

MAN Approach

Money: does the customer have money, or resources, to purchase the product?

Authority: does the prospect have the authority to make a commitment? This is particular concern when dealing with government or big organizations.

Need: does the prospect want or need the good or service? The salesperson should do as much possible to learn about the prospects needs and wants.

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How do we Identify Prospects?

1. Present customers

The best source of prospects is usually the salesperson’s existing customers.

It is said to be easier to sell additional goods and services to existing customers then to attract new customers.

Present customers can also give referrals to the sales person because of good relationship.

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2. Former customers It may be sometime feasible to reconsider former

customers as prospects. List of inactive customers can be compiled from

company records.3. Cold Calling Unsolicited sales calls Sales person makes contact with a potential

customer, introduces himself, and asks if there is a need for the product - telemarketing

It’s an expensive approach.

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4. Directories and mailing list The classified telephone directory is an example Membership directories of trade associations,

professional services, social organizations are also good sources for prospects.

5. Referrals Referrals from satisfied customers and other

people familiar with their goods and services. Endless chain prospecting – sales representative

asks a customers for names of friends or business associates who might need similar good or services.

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6. Trade shows and exhibitions A cost-effective way is to make personal contacts

and locate qualified prospects is to participate in trade exhibitions and shows.

Follow up on the sales lead developed in these trade shows.

Attract prospects for the show by mailing them or advertising.

7. Personal contacts Effective sales person are active in professional,

social and service organizations where they develop contacts.

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8. Direct marketing Companies, here, use a combination of advertising,

direct mails, and telemarketing. This is designed to generate sales lead and obtain useful sales information about potential customers.

These provide the firm with higher quality leads and more information with which to complete successful sales calls.

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PRE-APPROACH AND SALES

PRESENTATION PLANNING

Pre-approach gathering information about the prospect that will be used to formulate the sales presentation

Presentation Plan decide on presentation format and sales mix

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Pre - Approach

Additional information is gathered about the prospect and his or her needs, to prepare the best strategy to sell.

Who is the customer? Who will make the actual decision to purchase?

Who will be responsible for using the good or services?

What are the customer’s needs? Determine the customers ‘dominant buying motive’ the major reason the prospect is purchasing a good or service.

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Call Planning

Specific sequence of activities before the sales interview takes place

Developing a strategy – a tailor made strategy that suits his/her needs. The sales person must also evaluate alternatives available to the prospect and attempt to predict actions of potential customers.

Making an appointment – this will assure that the prospect will be available, and it saves time and cost of the company and salesperson. It can sometimes give the sales executive additional information during the pre-call phone conversation.

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Sales Mix ModelSales Mix Model

PresentationPace

PresentationScope

Depth ofInquiry

Use ofVisual Aids

Two-WayCommunication

Prospect

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NONVERBAL STRATEGIES

First customer contact critical!

Difficult to rebound from negative first impression

Nonverbal often more important than verbal

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UNDERSTANDING BASED ON

NONVERBALS AND FEELINGS

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SHAKING HANDS

May sound trite but it is very important

Make eye contact

Firm grip

Give your name when you extend your hand

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FACIAL EXPRESSIONS

Facial expressions convey inner feelings

People tend to trust a smiling face

Reading facial expressions fairly universal across cultures

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EYE CONTACT

Good eye contact says…“I’m listening.”

Prolonged eye contact can send the wrong message

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EFFECT OF VOICE QUALITY

-- Avoid rapid-fire speech-- Vary speed of your delivery -- Sound upbeat, energetic but not

phony--Convey enthusiasm in your voice -- Try to sound “relaxed”

EVER HEAR…”ITS NOT JUST WHAT YOU EVER HEAR…”ITS NOT JUST WHAT YOU SAY, BUT HOW YOU SAY IT?”SAY, BUT HOW YOU SAY IT?”

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MANNERS: WHAT TO AVOID

Avoid temptation to start on first name basis Avoid offensive comments or jokes Avoid religious or political discussions Avoid discussing business before meals are

served Avoid long voice-mail messages …speak

clearly, concise message Avoid cell-phone contempt

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YOUR PRODUCTSYOUR PRODUCTSYOUR PRODUCTSYOUR PRODUCTS

YOUR COMPANY & ITS POLICIESYOUR COMPANY & ITS POLICIESYOUR COMPANY & ITS POLICIESYOUR COMPANY & ITS POLICIES

YOUR COMPETITION & INDUSTRYYOUR COMPETITION & INDUSTRYYOUR COMPETITION & INDUSTRYYOUR COMPETITION & INDUSTRY

NEED TO KNOW

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PRODUCT INFORMATION CATEGORIES

Product development and quality improvement processes

Product configuration Performance data and specifications Maintenance and service Price and delivery

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KNOW YOUR ORGANIZATION

As closest-contact salesperson represents organization’s culture

Organizational “culture” is collection of beliefs, and behaviors, and work patterns common to firm’s employees

Many prospects use a firm’s past performance as index for current products/services

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KNOW COMPETITION AND INDUSTRY

Acquiring knowledge of competition is the key

Knowing strengths and weaknesses of competing products allows you to emphasize your benefits

Prospects do raise questions about competition

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HANDLING COMPETITION

1. Avoid referring to competition during sales presentations

2. Never discuss competition unless you have facts straight

3. Avoid criticizing competition

4. Be prepared to neutralize competitor proposals by adding value to yours

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BE AN INDUSTRY EXPERT

Sales people need to become expert in industry they represent

Need to move beyond product specialist to business analyst

Knowledge of industry must be both current and detailed

Last slide Chapter 5. 30

BENEFITS NOT FEATURES

“I don’t think that we understood our real goal when we first started Federal Express. We (initially) thought we were selling the transportation of goods; in fact, we were selling peace of mind.”

Frederick Smith, Founder, Federal Express