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BUS 466 - Chapter 6
Prospecting
32
Marketing
Undergraduate 4
12/05/2012

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Cards

Term

 

 

Prospecting 

Definition
  • process of locating potential customers for a product/service  
    • must find new customers to replace current that switch to competitors, go bankrupt, move out of territory, merge with noncustomers, or decide to do without product/service
  • MOST IMPORTANT ACTIVITY salesperson does
    • b/c world is constantly changing  
    • Lead vs. Prospect
Term

 

Relationship between the Steps in the Selling Process and the the Designation of the "Buyer"

Definition
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Term



6 characteristics of a good prospect



Definition
  • Does a want/need exist?
    • cust. want to satisfy both practical and intangible needs as well. 
  • Does the lead have ability to pay?
    • client is not a real prospect without resources to pay for the product 
    • ability to pay includes both cash & credit 
  • Does lead have authority to buy
    • knowing this saves the salesperson time and effort and results in a higher percentage of closed sales
  • Can lead be approached favorably
    • some prospects may not be accessible
  • Is the lead eligible to buy?
    • Volume 
    • Geographic location
    • "house accounts"
  • Other Criteria
    • Timing of Purchase
    • LT customer potential
Term

 

Satisfied Customers


Definition
  • current & previous customers are contracted for additional business & leads
  • MOST EFFECTIVE SOURCE for leads
  • Keep in touch
Term

Satisfied customers


How to Maximize Usefulness?


Definition
  • make a list of potential references from among most satisfied customers
     
  • Decide how each customer can help
     
  • ask for names of leads and the specific type of help needed
Term

Satisfied Customers


Referral events

Definition
- gatherings designed to allow current customers to introduce prospects to the salesperson, to generate leads
Term

Satisfied Customers


Selling Deeper

Definition

 

- Additional sales to

satisfied customers

who provide leads

Term


Endless- chain method

Definition
  • sales rep's attempt to get at least one additional lead from each person they interview
    • works best when sources is a satisfied customer and partner 
Term

 

Networking

Definition

- establish connections to other people and then using those networks to:

        • generate leads
        • gather information 
        • generate sales, etc...
Term

 

5 Practical Suggestions for Networking 

Definition
  • call at least - 2 people - per day - 
  • go to at least - 1 networking event - per week - 
  • Learn about prospect's business & nonbusiness interests 
  • Thank your contacts for leads
  • Follow up with new contact on regular basis
Term

Networking 


Center of Influence 

Definition
  • Salesperson cultivates well-known, influential people in the territory who are willing to supply lead information 
     
  • buying community 
    • may never buy 
Term

 

Finding Prospecting information via.


Social Media 

 

Definition
  • prospect's website
  • linkedin/twitter/youtube/slideshare/facebook
Term

 

Ads and Direct Mail 

Definition
- use sophisticated systems to generate the inquiries from leads
Term

Ads & Direct Mail

 

Postcard Pack

Definition
Term

Ads & Direct Mail

 

Bounce-back Card

Definition
Term

 

 

Shows, fairs, & merchandise markets

Definition

tradeshows: all attendees are customers - lead generation

  • In some industries, almost all sales to resellers occur 'during' markets
Term


Seminars & Webinars

Definition
  • use both for prospects to generate leads 
  • appeal to a specialized market
  • invite only good prospects
  • go high-quality
  • be involved before, during, and after 
Term

 


Lists & Directories

Definition
  • secondary data sources - can be free or fee-based
  • SIC
  • NAICS
  • Purchasing Lists
Term

 

Data Mining

Definition
artificial intelligence & statistical tools, to discover insights hidden in the volumes of data in their databases
Term

 

Cold Calling

Definition
  • generate leads by calling on totally unfamiliar organizations
     
  • Blitz
Term

 

Spotters 

Definition

- salesperson pays someone for lead information

 

also called BIRD DOGS

Term


Telemarketing

Definition
  • systematic & contiuous program of communicating with customers and prospects via telephone
Term

Telemarketing 

 

Outbound Telemarketing



Definition
Term

Telemarketing

 

Inbound Telemarketing

Definition
Term

 

How can a salesperson

become an expert?

Definition

 

- public speaking - writing journal articles

Term

 

Sales Letters 

Definition
  • Salesperson writes letters to potential leads
     
  • follow up with telephone call
     
  • include promotional items
Term

 

Other Source of Leads

Definition
  • personal observation
  • nonsales employees within the salesperson's firm 
  • goverment agencies 
  • clubs
  • other salespeople
  • trade assoications
  • volunteer activities
Term

 

Lead qualification &

management systems

Definition
  • prequalification 
     
  • analyzing lead value
     
  • evaluating profitability of sales resulting from lead-generating activities
Term

 

Reasons for Reluctance to Prospect 

Definition
  • Worrying about worst-case scenarios
     
  • being overly concerned with looking successful

  • being fearful of making group presentations, appearing too pushy, losing friends or family approval, and using the phone for prospecting  
Term

 

What are some ways you can overcome reluctance to prospect?

Definition
  • identify & evaluate excuses not to call
  • engage in sales training and role-playing activities 
  • make prospecting contacts with a supporting parter or sales manager
  • set specific goals for all of your prospecting activity
  • realize the economic value of most prospecting activities
  • stop negative self-evaluation from ruling your behavior
  • remember you are calling on prospects to solve their needs
  • control your perceptions of what prospects might say about you, your company, or your products
  • learn and apply relaxtion and stress-reducing techniques
  • recount your own prospecting successes or those of others 
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