Preliminary Steps in the Selling Process

Chapter 4

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.

PROSPECTING
Salespeople must seek out potential customers. Two major activities are involved in prospecting:
1.

2.

Identifying potential customers (sales lead) Qualifying them to determine if they are valid prospects.

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.

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 salespersons 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.

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 Its 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 customers 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 Model

Presentation Pace

Presentation Scope

Prospect

Depth of Inquiry

Two-Way Communication

Use of Visual Aids

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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 saysIm

listening.
Prolonged eye contact can

send the wrong message

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EFFECT OF VOICE QUALITY

EVER HEARITS NOT JUST WHAT YOU SAY, BUT HOW YOU SAY IT? -- Avoid rapid-fire speech -- Vary speed of your delivery -- Sound upbeat, energetic but not phony --Convey enthusiasm in your voice -- Try to sound relaxed
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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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NEED TO KNOW

YOUR PRODUCTS

YOUR COMPANY & ITS POLICIES

YOUR COMPETITION & INDUSTRY

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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

organizations culture

Organizational culture is collection of beliefs,

and behaviors, and work patterns common to firms employees

Many prospects use a firms 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

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BENEFITS NOT FEATURES

I dont 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

Last slide Chapter 5.

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