Introduction to Business/Marketing

Prospecting for customers is the first step to real selling, and must always be a salesperson’s top
priority. Customers come and go, and a salesperson must continually replace a certain percentage
of existing customers who will inevitably fade away. The entire object of any prospecting must be to
find sales leads that can eventually be translated into sales turnover. Effective prospecting, however,
requires a systematic methodology, as well as personal self-discipline, without which, the reliance on
luck, or on the w:law of averages, will only result in a great deal of wasteful time and effort.
The average salesperson, unless he is quite unusual, will always have a natural negativity toward
approaching anyone new. Yet, it cannot be over-emphasized that, however good his negotiating or
closing skills, he will always fail in his selling if he does not have available, a regular supply of new
prospects. The salesperson must therefore overcome the inertia to talk to someone new. The
essential rule is to prospect all the time, and not just when he appears to have run out of potential
people on whom to call.

Contents

Identifying the target market

Long before a salesperson even goes out into the market to sell his product, he must spend what
might seem to be a disproportionate amount of time, analyzing what his potential market is, so that
when he starts prospecting, he is at least looking in the most likely places where those customers
will be found.
A salesperson must understand his products thoroughly, and ensure that there is a match between
product benefits and customer needs, failing which, there will be little point in prospecting for
customers.
Where the potential market is very wide, there are significant advantages to be gained by limiting to
just one or two specialized market segments, for the following reasons:

 A salesperson simply does not have the time to make everyone his
customer. If he then has to decide which segment of the market to
target, he must choose the easiest one to close a sales.
 There may well be some products in a salesperson’s product range
that match up better to one industry or market segment than
another. If he can tailor his products to secure a unique selling
proposition (USP) in that particular market segment, he will not
need to compete with those who do not have it.
 By focusing on a particular industry, a salesperson can gradually
acquire technical knowledge of his customer’s industry, thus
enabling him to develop empathy and talk on equal terms with his
customers.
 Existing customers are more likely to recommend prospects to a
salesperson if the salesperson has already established his
credibility in the industry.
 It is far easier to target advertisement|advertisingefforts if they are
concentrated in a narrow plain. Also, he can more easily meet the
 people who will make his best contacts by attending the annual
exhibitions and functions that this industry will invariably organize.
To identify which particular market segment to aim for, a salesperson should begin by analyzing the
profile of his existing customers, and secure a picture of what his "ideal customer" should look like.
The profile should include their psycho-demographic characteristics, such as age, sex, their jobs,
and their interests, since all will, in one way or another, control where or when they buy. If viable, the
salesperson should also consider using mailshots and advertisement|advertising to evaluate his
potential market.

Identifying potential customers

Having decided on a specific market, the salesperson should try to limit his prospecting to remain
within that market. The ideal customer (i.e. the one who buys as soon as the salesperson talks to
him) is probably non-existent, but the closer a salesperson's prospect matches that ideal customer,
the fewer sales objections will be placed in his way. It therefore makes sense to ensure that his
prospects at least resemble the specification as accurately as they can. This means identifying the
potential of a prospect at the very outset. In particular, the salesperson should know the
requirements that a potential customer has set for his future, the priorities that he has decided, and
in all probability, his financial resources. Failing to analyze a prospect is the main reason for a great
deal of wasted prospecting time spent on a customer who should have been promptly discarded,
after due research.
Preliminary research always saves time. Good prospecting is not necessarily dismissing those
whose business appear to be static, but it is certainly the ability to select and concentrate one's
efforts where one is more likely to secure immediate success.
Gathering information from printed materials
A salesperson should read all he can about his market, using information that is readily and freely
available in libraries, reference books, trade directories, newspapers and magazines. It is vital to be
well informed about the specific market and those in it. The smaller local newspapers are full of
names, addresses, and occupations of many people in the community, who could use his services.
If the salesperson were cold-calling, he would need the first 15 minutes of any meeting to glean all
this information, while in a newspaper it is waiting there for him to absorb before his call. If he relies
solely on chance to find those who have recently acquired new appointments, new authority or
increased incomes, he will merely be one of the many cold-callers with whom he has to compete. By
having prior knowledge of that change, he should be there ahead of the rest.
Developing information network
The salesperson should develop a system of using other people to provide him with information
which can then be usefully followed up:

 Previous business contacts: If he has previously worked for

another company, he has a whole hierarchy of personnel who he
can contact, most of whom will be only too ready to assist if they are
aware that he is not in competition, nor detrimental, to their own
business. If he is a financial advisor, he can even offer his new
services to them. A salesperson should use his contacts to make
other contacts, and he will certainly find this a great deal easier than
making every new prospect a cold call.

 Contacts in personal life: The list of people with whom he deals

through his home can be equally fruitful. From the opening moment,
 when he first looked at his new house, he probably may have dealt
with builders, estate agents, solicitors, decorators, plumbers,
removal companies, and many others, all of whom may have been
pleased to do business with him, and might well be prepared to do
business in return. Even if they do not follow on to do positive
business, they may well pass him on to someone who will, and
regardless of that possibility, they will certainly be easier to
approach than someone who has not met him before. Why make it
difficult for himself by talking to someone he does not know, when
he has not tried talking to those who would at least recognize him.
And, once he is in that new home, the list of suppliers, from the
newsagent through the milkman to the grocery stores, starts all over
again, from which he can use them.
 Social contact: In his social life, the salesperson will need to be
systematic and professional with those he knows, not promoting his
selling, but ensuring that everyone knows what he does and that
they are able to trust his judgement when they are looking for the
kind of advice that he has on offer. At social meetings, he must
avoid talking about business even if he is actually asked to do so,
but should merely confine any mention of business to the exchange
of cards or telephone numbers so that he can make a professional
approach later. Allowing himself to talk business at such gatherings
ensure that he will:
o become unpopular for doing so;
o be doing it in the wrong environment to get his message across;
and
o be unable to pursue business later in a better environment,
since he has used his sales approach already.
The rule must be to restrict his selling only to those occasions when he can be sure of doing it
professionally, and in his own chosen environment. Doing it whenever he finds himself at a cocktail
party or a social evening, and he should not be at all surprised if he no longer finds himself on the
invitation list.

 Personal observation: The salesperson should be observant when

he is out and about. The information is often there for him to see in
the multitude of shop fronts that lined the streets. With luck, the
telephone number will also be displayed. He should take a pocket
tape recorder with him in the car, and have it alongside while
driving. Such recorders are inexpensive and the cost can easily be
recouped by converting just one of the contacts he acquires into a
sale. It is more practical than a pen and paper, and because it is
easy, he will use it far more readily than any other method.
Even in the reception areas of large office blocks, the salesperson will not only be able to find a
great deal of information about the companies that operate there, but he may often find a
receptionist or a concierge who will only be too happy to tell all he knows about the people who work
there.

Recording information
Any worthwhile evaluation of a prospect will generate a great deal of information and understanding
of the prospect. Whatever information is secured, the salesperson should record it even if he does
not plan to follow it up immediately. The information will probably be of value later and, even if it is
not, it will have cost very little to retain it. Any other method must rely on a good memory, and there
are few of us who could boast to have that at their disposal.

Thinning out the prospects

While a great deal of selling effort fails because the prospect cannot be convinced of the suitability of
the proposal, a still larger number of sales fail because the prospect was not really a prospect in the
first place, and very little real work had been done by the salesperson to filter out the good prospect
from the bad before the selling operation began.

 Does your product really meet the buyers' needs?

A salesman's product must be relevant to his prospect. If no one's requirements seem to match with
what he is selling, then he is either moving in the wrong circles (not impossible), or selling the wrong
product. A man without children cannot be convinced of the viability of an insurance scheme to cover
the costs of child education. A hermit has no need to cover against the security of his dependants.
The unfortunate truth is that many sales are attempted to prospects who could be eliminated as
possibilities by a little research.

 Has your prospect the finance to buy?

The salesman must establish on the outset whether the prospects can afford to buy. He should
worry later about whether he can convince them to part with it, but if they do not have the funds in
the first place, he is certainly digging dead ground. The information required can generally be
established very early in a sales interview through a simple trial close such as, "If I can convince you
that..., would you be prepared to consider…..?'" You are not asking for a decision, and the prospect,
in answering, is merely saying, "You have not convinced me yet, but if you can, I would be prepared
etc..." Failing to establish this initial willingness (or ability) to invest will end up with endless
discussions which earn little profit.

 Is your prospect the real decision maker?

This comes back to basic selling where it is vital to know who the decision-maker is, so as to save a
great deal of time in having to redo yet another sales presentation. It is sometimes necessary to
disbelieve someone who says that he is the decision maker. This applies as much to companies as
to families, and it is possible that someone who does not have the authority may well be reluctant to
say so, possibly to pre-screen the salesperson first, before allowing him to meet the actual decision-
maker. In a household, even simple decisions are not always made by the obvious partner.
As a policy, while a salesperson should always ignore the less promising prospects until the end of
the operation, he should also ensure that he retains the information on them so that it is easily
available later on. It is not impossible that in a year’s time, he can make a new approach based on
the possibility that by that time, either the prospect's potential, or indeed the salesperson's offer, may
have changed. What may seem a poor prospect today may be one that the salesperson can well
afford to spend time on at a later date. If a salesperson merely works through in a rigid format on
long, unselective lists, with little regard for their comparative importance, he will find himself with
inadequate time to follow up high prospect leads, simply because he is giving the hard work cases
equal priority with the others.
Methods of Personal Selling
Making use of social contacts

 Using existing contacts to make others

 Cold calls
 Prospecting through telephone
 Mailshots
 e-business
Making use of social contacts
A salesperson must adapt his personal lifestyle to his selling career, so that what he does outside
his business life contributes to selling. He needs to cultivate friends who are influential themselves,
since they are the ones who will be in the best position to help him. It helps to join the same club as
the prospects, and if that means joining more clubs than he would otherwise wish to, then this is the
price that he has to pay for being a salesperson. After all, if he is dealing with someone who is a
member of a club, or association, then having sold to him, it is easier to sell to another member of
the same association. People do tend to lean on the experience of others, and the same rules that
can ruin his reputation if he sells unethically, will help him do the reverse if unbiased third parties
were to vouch for his Product (business)|products and his integrity. Memberships are likely to
generate good returns for the salesperson who is prepared to regard anyone he meets as a potential
user of his service. Working at the social round often means "belonging" to groups.
Always sell to friends before strangers
It is always easier to sell to friends than to people whom you do not know. Most people, however,
are of the opinion that a salesperson should not sell to friends, since this is the quickest way of
losing friends. In reality, it is bad selling that prompts this kind of remark. Assuming a salesperson's
product or service is of value, it must make sense to share it with others in his social circle who, if
there is something to be gained, will certainly not resent his approaching them in the first place.
There are several businesses, particularly financial planning, where selling to friends represent a
high proportion of turnover, and it would be difficult to imagine this particular aspect of selling,
without the friendship that goes with it. The argument against it is that somehow, the salesperson is
making use of people, but if the product is good, the salesperson is in fact helping his friends to
make an influenced decision, based on trust, instead of the uninformed decision, he makes without
it. This kind of advisory selling often enhance Interpersonal relationship|personal relationships,
especially when it is mutually beneficial.
Move among the people where your business is likely to be
Once a salesperson has established his own circle, he can then make his entry into their circles, and
move among the people where his business is likely to be, always bearing in mind that the people
who invite him may have an ulterior motive in getting him into their circles of friends. He should also
have a good commercial reason for accepting the invitation, and in the end, everyone benefits from
the association. A salesperson only has a limited amount of time at his disposal, and it is essential
that he guides his social life into securing a range of contacts who will introduce him to the others
who may be of value to him.
Work at being in the mainstream of a busy social life
The place where a salesperson belongs, and where he spends his "free time" are the places where
he ought to be looking for, and securing his business. After all, the potential of his social circle must
be one of the reasons why he cultivates it in the first place. The basic principle when endeavoring to
sell in any social circle is to have total optimism that it would not be difficult to achieve what he is
planning to do. After all, there is only one alternative to trying to sell to friends, and that is trying to
sell to strangers. Logic alone would tell which is the easier of the two options. Right through the
selling game, the fear of rejection can be very overwhelming, but the salesperson who wins is the
one who believes that there is a prospect somewhere in the environment where he is at that time,
and who has the confidence to look for that prospect. This means developing his imagination so that
he can swiftly recognize the indicators, showing where his customers are likely to be.
It is also essential that the social circle that a salesperson moves in is not comprised too much of
like-minded people, as he will probably achieve more by moving among the wealthy and influential.
During the time that he is moving among salespersons, he should not forget about the prospect
names that he is able to pick up from others. Often, salespeople from another industry can be
mutually useful, by providing leads and information that they are unable to make use of themselves.
They will, of course, expect the same from the salesperson. In his private life, a salesperson does
have many prospects whom he never even thinks of as prospects. Every retailer whom he deals
with, every business that enjoys his patronage, even the local authorities to whom he pays his dues,
the teachers at school where he sends his children, may all well have a use for his service, and will
be more approachable as he knows and deals with them already. It may well be possible to turn the
table around, so that the business is reciprocated.
Using existing contacts to make others
Referrals are special introductions from one customer or prospect to another, and give the
salesperson an edge in his initial discussion. The alternative is calling everywhere cold, and that is
making hard work, when hard work is not necessary. A reference that a common friend recommends
a call to the prospect immediately offers a jumping-off point which starts the conversation off on a
more personal basis, and connects it with a person, the prospect can relate with. It gives the
salesperson an advantage over a competitor who arrives with nothing in his hand. Once the initial
contact is made, the referrer becomes less important.
Referrals are the easiest way of passing on from one prospect to another. However, it is essential for
the salesperson to qualify the referrals as far as is possible, and that he secures as much useful
information as he can from the people who are supplying them. After all, the salesperson is going to
require the information some time, and the friend who gives him the name of a new contact will
probably have all the right information already at his fingertip.
Methods of getting referrals
A salesperson, however, must not think that referrals will just come on its own. They will rarely be
offered, unless asked for, and they are also unlikely to be refused, if asked. The easiest method of
getting referrals is from the people whom the salesperson meets from day to day. A prospect may or
may not offer the salesperson any business, but he can certainly suggest a friend who might use his
services. If the person is already a satisfied customer, he will probably agree to the salesperson
using his name to secure an introduction to a friend, backing it with the knowledge that he believes
the salesperson’s offer is worth recommending. If the prospect does not buy from the salesperson,
he will feel that in his apology for not doing so, he is offering the salesperson something by giving a
referral. Either way, the salesperson is throwing his best chance if he fails to ask for a referral who
may well buy.
Referrals need not of course, just come from existing customers, and the salesperson will need to
make use of many other people. Many will inevitably be encouraged to supply information to the
salesperson, if it is a two-way service, so whenever the salesperson has information which might be
useful to someone else, he should make sure that it is passed on. By recommending business to
someone, the salesperson has gained someone in the field who will think of him, when a similar
chance occurs to return the favor. Relationships with anyone else, either in the salesperson's
industry or outside of it, can prove to be of enormous value in his own prospecting for customers.
It is essential to work on the principle of referrals with everyone a salesperson meets. There should
be no such thing as a "wasted" call, since every prospecting call which does not produce real
business should be able to produce at least one possible prospect for tomorrow. The salesperson
should make it a daily habit to always ask everyone he sees. The worst reply that he will get is a
"no", and rarely will someone admit that he knows no one who might have use for the salesman's
services.
When asking for referrals, the salesperson should never make it too general by saying, "Is there
someone else who might be interested in my service?" This almost certainly guarantees a negative
answer as the question is far too wide to secure a considered reply, and, as a result, he will get the
easiest answer that his prospect can give him. However, if the salesperson is specific, and tries to
channel his prospect's mind into thinking of a useful reply, he will phrase his question in a way such
as:

 "Mr Burton, I am sure that we have now put your production line on
a more effective footing. Is there any other engineering company
within your group which you think might be able to benefit in the
same way?"
 "Is there another bank manager in this housing estate who also has
a family, and might have the same insurance requirements as
yourself?"
With personal friends, the salesperson can even be more open in your approach, saying in effect, "I
need some more business. Please can you help me with your advice?" People will react properly if
they are asked in the right way, so long as the salesperson is straight enough to tell them why he is
asking, and how he intends to use the information. Fail to be honest with his friends, and the next
time the salesperson asks, he may find them resentful that he has used information which they were
not aware was going to be used commercially. The salesperson will probably have to encourage
their sympathy to produce the names of people who will be of real interest to him. By doing so, he
will ensure that they do not simply supply him with two or three names of people who really do not
have a need, and in so doing, they then feel that they have done him a favor. It is better that they be
encouraged to give him one cast-iron referral, rather than six casual possibles. The salesperson
should not forget that referrals can always be introduced independently by himself, where he knows
that the two persons are well-acquainted. "As I was saying last week to Mr Maxwell, I believe you
are a friend of his", establishes a link between two people, even though the link may not be as strong
as a direct recommendation from one to the other. It cannot be overemphasized in selling that
everything that can introduce a rapport of any kind between the salesperson and his prospect will
make his presentation that much easier.
Thanking the referrers
Lastly, the often neglected part of using referrals is to make use as often as the salesperson can of
the contact who gave him the recommendations in the first place. He should always go back to the
person who gave him the referral:

 First, the person will be pleased that the salesperson takes the time,
and the rare step of thanking him for the initial information.
 Secondly, the person will be pleased that the salesperson actually
acted on his advice by contacting the suggested prospect.
 Thirdly, the person may well encourage his proposal to the third
party by directly contacting him himself.
 Lastly, if the person knows one good prospect, he probably knows
more, and the salesperson will possibly get a further contact to
pursue.
Illogical though it is, the second name might well be a better one than the first, since the person is
now aware that the salesperson is prepared to follow up on his suggestions, and he might, as a
result, be encouraged to think in greater depth of names that might be useful to the salesperson.
The salesperson should secure no more than one or two prospect names each time, as this will give
better assurance that they will be of reasonable quality.
Cold calls
While cold-calling may not be the most effective of selling approaches, there will be times when it is
the only option available, simply because the salesperson does not have enough appointments
through other methods. The object of a cold call is NOT to sell, but to prospect and to decide
whether an appointment is worthwhile. The salesperson must never be led into making a sales
presentation, even if requested by the prospect, as he must not blow his chance of giving a proper
sales presentation.
During the initial approach, whether by telephone or otherwise, the following information must be
collected as early as possible:

 Does the customer need the product?

 Can the customer afford the product?
 For companies: What is the customer's buying procedure?
 Who has the full authority to make the purchase (name and
position)?
 When is the best time to meet up with the prospect?
If the answers to the first two questions are in the negative, there is no point in proceeding further.
Tact must always be exercised in seeking information.
Often, it is not possible to talk to the right person in the case of companies, as the way is usually
blocked by a receptionist or secretary who will try to filter the sales call. The salesperson should
assert his own authority, and make anyone who blocks his way aware that he considers himself to
be on an equal footing to their boss as he has some benefits to offer to the company. While being
tactful, the salesperson must never make any subordinate think that they are doing him a favor by
arranging an appointment; after all, it is their job to do so.
If the salesperson is unable to meet the right person, he should leave a message that he has called,
indicating briefly what it is that he wishes to talk about. It is far easier for the salesperson to talk to
someone who is aware that he has called previously. His message will also notify the prospect that
he is persistent, and that if the prospect were to reject his second call, he can expect a third call. As
a rigid rule, the salesperson should never leave his telephone number, and expect the prospect to
call back.
Whether on telephone or otherwise, the salesperson should always endeavor to get his message
across as quickly as possible. Statistically, if he is unable to do so within 30 seconds, he will
probably never get a chance to do so at all.
Guidelines for cold-calling
The following pointers must always be borne in mind to avoid the pitfalls of call-calling:

 Work to a rigid timetable: The operation must be regarded as a

rigid discipline in telephone prospecting. Two hours is probably as
long as any salesperson can remain enthusiastic and effective. As
with any other kind of prospecting, calls should be recorded so that
results can be analyzed. By making a record of where a specific
approach has worked, the salesperson can make sure that he uses
that approach regularly as part of his presentation.
 Ensure you know WHY you are calling: This will almost always
be not to sell, nor even to elaborate on the service provided, but to
get information and to make appointments.
 Do not try to sell unannounced: The salesperson should forget
about trying to sell anything with a cold-call. People nowadays
resent the unannounced intrusion into their premises.
 Learn from failed calls: A salesperson should regard rejection as
a feedback that his selection procedure was wrong to begin with. If
he regards rejection negatively, he will eventually join the ranks of
those salespeople who dismisses cold-calling. Most objections are
raised are usually not valid, and more than before, the salesperson
needs to meet up with the prospect to find out the real reason.
 Use one call to generate another: Wherever possible, the
salesperson should use the call as a method of referral to generate
introduction to another.