CHAPTER 9 Developing a Prospect Base 1 Copyright

CHAPTER 9 Developing a Prospect Base 1 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Learning Objectives • Discuss the importance of developing a prospect base • Identify and assess important sources of prospects • Explain common methods of organizing prospect information 2 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Learning Objectives (Continued) • Describe criteria for qualifying prospects • Identify some characteristics that are important to learn about customers as individuals and as business representatives • Describe the steps in developing a prospecting and sales forecasting plan Copyright 2004 Pearson Education Canada Inc. 3

CHAPTER 9 Prospecting is a systematic process of identifying potential customers. 4 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Prospecting üThe prospect base is a list of current and potential customers. üA prospect is a potential customer. 5 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Common Causes of Customer Attrition • Customer re-location • Business closure or merger • Buyer leaves due to promotion, retirement, resignation, etc. 6 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Improving the Quality of Prospecting • Increase the number of potential prospects who board the “Ferris Wheel. ” • Improve the quality of prospects. • Shorten the sales cycle by dealing with “qualified” prospects. 7 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Prospecting – The “Ferris Wheel” Concept Referrals Friends, family members, and centres of influence Directories and trade publications Trade shows and telemarketing Direct response advertising and sales letters Web sites and computerized databases Cold calling, networking, and educational seminars Prospecting by non-sales employees 8 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Prospecting – The “Ferris Wheel” Concept Relationship between customer and salesperson deteriorates Referrals Friends, family members, and centres of influence Business Failure Directories and trade publications New buyer buys from another source Trade shows and telemarketing Acquisitions and mergers Direct response advertising and sales letters Customer moves Web sites and computerized databases Death of customer Cold calling, networking, and educational seminars Customer has only a one-time need for product Prospecting by non-sales employees Customer needs change because of new technology Copyright 2004 Pearson Education Canada Inc. 9

CHAPTER 9 Referrals - The Endless Chain A Referral is a prospect who has been recommended by a current customer or by someone who is familiar with the product or service. A productive referral begins an “endless chain” of opportunities to prospect for new business. 10 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Prospecting for Clients – Canadian Directories • • Blue Book of Canadian Business Canadian Key Business Directory Canadian Directory of Industrial Distributors Canadian Trade Index Fraser’s Canadian Trade Directory Polk City Directory Scott’s Directories 11 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Prospecting for Clients – Scott’s Directories • Scott’s Directories - www. scottsinfo. com 12 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Using your Networking is the practice of making and using contacts. It involves people meeting people and profiting from the connections. 13 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Using Networking Tips for Networking • Be focused • Be a listener • Be sincere • Be mobile • Be a joiner • Be sensitive to cultural and physical differences 14 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 Search for “Qualified” Prospects A “qualified” prospect has • a need for the product or service. • the ability to afford and pay for the product or service. • the authority to make a purchase decision. 15 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 When “Qualifying” Prospects, you should ask • Are they already buying from you? • Are they a former customer? If so, why did they stop buying? • Are they users of your product or service? 16 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 When “Qualifying” Prospects, you should ask (Continued) • What is the amount of potential sales? • Does the prospect have a good credit rating? 17 Copyright 2004 Pearson Education Canada Inc.

CHAPTER 9 The Prospecting Plan • Prepare a prospect list • Forecast the potential sales volume that might be generated • Establish a logical territory route 18 Copyright 2004 Pearson Education Canada Inc.