CHAPTER 9 Developing and Qualifying a Prospect Base.

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9Developing and

Qualifying aProspect Base

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Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• Discuss the importance of developing a prospect base

• Identify and assess important sources of prospects

• Describe criteria for qualifying prospects

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

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Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• Explain common methods of organizing prospect information

• Describe the steps in managing the prospect base


Prospect, Prospecting, and Prospect, Prospecting, and Prospect Base DefinedProspect Base Defined

Prospect, Prospecting, and Prospect, Prospecting, and Prospect Base DefinedProspect Base Defined

• Prospect: a potential customer that meets the qualification criteria established by your company

• Prospecting: identifying potential customers

• Prospect base: is made up of current customers and potential customers

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9-4

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Importance of ProspectingImportance of ProspectingImportance of ProspectingImportance of Prospecting

• Every salesperson must cope with customer attrition:

• Customer may have a one-time need

• Customer may move outside the salesperson’s territory

• Firm may go out of business or merge

• Sales may be lost to the competition


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Girard’s Ferris Wheel—SupplyGirard’s Ferris Wheel—SupplyGirard’s Ferris Wheel—SupplyGirard’s Ferris Wheel—Supply

FIGURE 9.1Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

FIGURE 9.1

Prospecting Requires PlanningProspecting Requires PlanningProspecting Requires PlanningProspecting Requires Planning

• Increase number of people who board the Ferris wheel

• Improve the quality of prospects

• Shorten sales cycle by determining which prospects are “qualified”

• Prospecting plans must be monitored continuously for effectiveness


Sources of ProspectsSources of ProspectsSources of ProspectsSources of Prospects

• Referrals

• Centers of influence

• Directories

• Trade publications

• Trade shows and special events

• Telemarketing and e-mail

• Direct-response advertising and sales letters

•

• Website

• Computerized database

• Cold calling

• Networking

• Educational seminars

• Prospecting by non-sales employees


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ReferralsReferralsReferralsReferrals

• Prospect recommended by current satisfied customer or one familiar with product or service

• Endless chain: ask contact who else could benefit from product

• Referral organizations: facilitate networking

• Friends, family members, centers of influence: a person who may have influence on opinion leaders


Lead GenerationLead GenerationLead GenerationLead Generation


See theWebsite

Lead GenerationLead GenerationLead GenerationLead Generation


See theWebsite

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DirectoriesDirectoriesDirectoriesDirectories

• Hundreds of business and industrial directories available

• Many major trade associations publish directories

• Be sure to use current copy or edition as prospects shift firms; track people and companies


Popular National DirectoriesPopular National DirectoriesPopular National DirectoriesPopular National Directories

• Middle Market Directorywww.dnb.com

• TrackAmericawww.trackamerica.com

• Standard & Poor’s Corporation Records Service

www.spcglobal.com

• Thomas Register of American Manufacturers

www.thomasregister.com

• Polk City Directory

www.citydirectory.com

• The Encyclopedia of Associations

www.gale.com


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Trade Shows/PublicationsTrade Shows/PublicationsTrade Shows/PublicationsTrade Shows/Publications

• Trade shows and conventions: your company may have a booth at key trade shows/expositions

• Trade publications: each industry has trade publications that sales professionals need to read

• Join trade associations: many salespersons join trade associations to gain access to potential buyers


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TelemarketingTelemarketingTelemarketingTelemarketing

• Telemarketing: the practice of marketing goods and services through telephone contact

• To identify buyers and generate contact lists for sales staff

• To qualify prospects

• To verify sales leadsgenerated by other methods

• To conduct follow-upsCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Direct Response andSales Letters

Direct Response andSales Letters

• Direct response advertising: often features inquiry cards or information requests via mail or telephone

• Sales letters: send sales letters to decision makers, then follow up


WebsiteWebsite

• Websites provide a cost-effective way for sales professionals to:

• Project personal image

• Provide additional information

• Generate leads from visitors to site

• Present product information

• Establish e-mail lists


Computerized DatabasesComputerized Databases

• In-house databases: your firm may already have a comprehensive database, sometimes referred to as the “house list,” with details on customers, purchase patterns, and so forth

• List sources: wide range of precise lists available from variety of sources

• See www.infoUSA.com


Computerized DatabasesComputerized Databases

• Purchasing databases or lists can be costly; price usually set on cost-per-thousand names

• Not all relevant databases are equal; some “pull” better than others

• Pull is the percentage of the list resulting in qualified prospects or actual sales


Cold CallingCold CallingCold CallingCold Calling

• Simply calling prospects without referrals

• New salespeople rely on these as they haven’t built a referral base

• Must be strategically planned

• Prelude to in-person appointment

• A way to introduce yourself and your company to a prospect


NetworkingNetworkingNetworkingNetworking

• Making and profiting from personal connections

• Networking guidelines

• Meet as many people as you can

• Tell them what you do

• Do not do business while networking

• Offer business card

• Edit contacts and conduct follow-ups


Three Types of NetworksThree Types of NetworksThree Types of NetworksThree Types of Networks


FIGURE 9.2

Educational SeminarsEducational SeminarsEducational SeminarsEducational Seminars

• Provide opportunity to showcase product without pressuring to buy

• Require extensive preparation

• Start value-added process

• Can attend or present at industry-sponsored seminars or offer your own


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Non-Sales EmployeesNon-Sales EmployeesNon-Sales EmployeesNon-Sales Employees

• Non-sales personnel can be valued source of leads

• Prospecting not necessarilyexclusive task of sales force

• Non-sales personnel oftenneed training and incentives


Combination ApproachesCombination ApproachesCombination ApproachesCombination Approaches

• Salespersons generally rely on combination of prospecting methods

• Some methods have higher yield than others

• Important to use CRM technology to help maximize efficiency


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Qualifying ProspectsQualifying ProspectsQualifying ProspectsQualifying Prospects

Basic questions:

• Does the prospect need my product?

• Does the prospect have the authority to buy my product?

• Does the prospect have the financial resources to buy my product?

• Does the prospect have the willingness to buy my product?


Collecting and Organizing Collecting and Organizing Prospect InformationProspect Information

Collecting and Organizing Collecting and Organizing Prospect InformationProspect Information

• Sales data can be collected and organized into Customer Relationship Management (CRM) Systems

• Examples of popular applications:

• Salesforce.com

• Oracle

• NetSuite

• Microsoft


Harvey Mackay

suggests a 66-question customer profile.

See it at:mackay.com

The CRM Contact SheetThe CRM Contact SheetThe CRM Contact SheetThe CRM Contact Sheet


See theWebsite

Sample CRM Contact Sheet from Salesforce.comFIGURE 9.3

Managing the Prospect BaseManaging the Prospect BaseManaging the Prospect BaseManaging the Prospect Base

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 9-29See theWebsite

Sample CRM record for one salesperson’s prospects from Salesforce.comFIGURE 9.4

Prospecting and Prospecting and Sales Forecasting PlansSales Forecasting Plans

Prospecting and Prospecting and Sales Forecasting PlansSales Forecasting Plans

• Important to balance time and organize contacts:

• Prepare a list of prospects

• Forecast potential sales volume for each new account, by product

• Carefully plan the sales route to minimize time and cost


The Portfolio Model for The Portfolio Model for Classifying ProspectsClassifying Prospects

The Portfolio Model for The Portfolio Model for Classifying ProspectsClassifying Prospects


FIGURE 9.5

The Sales Funnel ModelThe Sales Funnel ModelThe Sales Funnel ModelThe Sales Funnel Model


FIGURE 9.6

Using CRM Technology for Using CRM Technology for Pipeline ManagementPipeline Management

Using CRM Technology for Using CRM Technology for Pipeline ManagementPipeline Management


FIGURE 9.7

Sample CRM pipeline

dashboard from Salesforce.com

See theWebsite

Key ConceptKey ConceptDiscussion Questions Discussion Questions

Key ConceptKey ConceptDiscussion Questions Discussion Questions

• Discuss the importance of developing a prospect base

• Identify and assess important sources of prospects

• Describe criteria for qualifying prospects• Explain common methods of collecting

and organizing prospect information• Describe the steps in managing the

prospect base

9-34Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

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CHAPTER 9 Developing and Qualifying a Prospect Base.

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