ANDREW ZIELINSKI MBA wwwaccrongroupcom fengyeschool Module 6 Prospecting Module 6 prospecting Module Summary 36 Hours 3 35 Weeks Defining a Target Customer Base Building a Database ID: 582246
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Slide1
SAlES representation
ANDREW ZIELINSKI, MBA
www.accrongroup.com/
fengyeschool
/Slide2
Module
6: ProspectingSlide3
Module 6: prospecting
Module Summary (36 Hours: 3 - 3.5 Weeks
)
Defining a Target Customer Base
Building a Database
Determining a Sales Territory
Communicating in Writing with Target Customers
Communicating by Telephone with Target Customers
Meeting in Person with Target Customers
Post Mortem
and Follow-Up
Competency Achieved:
How to develop prospects within a given sales territorySlide4
Module 6: sales representation
IntroductionDefinitionFunctions
Steps
Additional ChannelsSlide5
Module 6: prospecting
To get us started…
A sales rep says: “Everyone is a potential customer for my company.” Do you think this is true? Explain
Try naming three types of information that you think would be important to see in a prospect profile
You work for a company that specializes in creating special effects on film. Name two types of organizations that could be likely prospects
You are a sales representative for a company that makes high-end kitchen cabinets. Name two sources of information that you would consult in order to search for new prospects
Which is the most effective channel for prospecting: mail or telephone? (trick question)Slide6
Module 6: prospecting
To get us started…
What do you think is the difference between a conversation with a friend and a prospecting call?
Should you leave a voice mail message or a message with
the receptionist?Slide7
Module 6: prospecting
DefinitionThe first step, in Sales
On-going, never ends
Searching for new customers and exploring the potential of new sources of customers
Functions
Prospecting ensures the continued operations of the company
If the company’s customer base is like a bath tub, prospecting is the tap that keeps water flowing in with customers but the tub is not properly plugged and some customers drain out. For the tub to remain full, and for the company to continue to operate, the flow of incoming customers must be greater than the flow of outgoing customersSlide8
Module 6: prospecting
Why do Customers Leave?
Neglected Service
Dis-satisfied with Product
Price Competition
Other Business Reasons
Relocation
Death
CEMEQ, Collection Representation, Module 6Slide9
Module 6: prospecting
Why Prospect?Renew the client base as customers sometimes leave
Maintain and Grow sales activity
Maintain and grow profits
Ensure regular business
Discover new customer needs
Find market trends in order to ensure offerings remain current
Discover new ideas to expand market
Measure current market position relative to competitorsSlide10
Module 6: prospecting
Preliminary Step: A Marketing UnderstandingA Sales Representative would be well advised to be aware of the following before starting on prospecting activities:
What is my company’s current go-to-market plan:
l
aunching new products, opening new locations, etc.?
What is the current market environment: new competitors, economics, demographics?
What are my company’s target markets and customers? Who is interested in purchasing our products/services?
What are my company’s short and long term financial goals?
What are the benefits and advantages of
m
y products/services?
What is the value-add to my products/services compared to competitors?Slide11
Module 6: prospecting
Steps to Prospecting
Pre-requisite:
Know the market in which you operate!
Market
Description
Industrial
Manufacturing & transformation, the “secondary” sector. Sell
primary products, equipment, supplies, vehicles, etc.
Institutional
Public and
para
-public organizations that offer professional services. Sell to government departments,
municipalities, hospitals, teaching establishments, financial institutions, etc. Products: office supplies, IT equipment, etc.
Commercial/Distribution
Businesses such as retailers, groceries, garages, car dealers, wholesalers, hospitality and restaurants. Sell products for resale, office supplies, services
Professional
Consumption
Professionals purchase for their own use, in their business
Geographic
Specifically defined region. Can include a mix of customer types: industrial, commercial, professional,
etcSlide12
Module 6: prospecting
Steps to ProspectingSegment the market and target your customers
Create a prospecting database or filing system
Evaluate your prospects in order to prioritize according to probability of purchasing
Determine optimal prospecting approach: mail, email, phone, mass mailing/advertising, cold call, events, etc.
Plan and execute prospecting starting with reaching out and setting appointments, demos, etc.Slide13
Module 6: prospecting
When to ProspectThis is not a mechanical processAlways prospecting, however, prospecting campaigns that provide additional focus and time, can occur at key points in your market cycleSlide14
Module 6: prospecting
Selecting a Prospecting Strategy
The Sales Environment
6-9 Contacts to make a sale
Making a sale with the first customer, on the first visit increasingly more difficult due to competition, fickle customers, and difficulty in convincing customers
Prospecting strategy aligns with corporate marketing plan. Based on:
Market position
Market dynamics
Area of activity
Etc.Slide15
Module 6: prospecting
Examples
Strategy/App
roach
Description
Example
Calendar
Sets prospecting activities as
a function of daily, weekly, monthly, or yearly cycles in the target market
An enterprise service prospecting activity works during regular office hours but also works after hours, at Chamber of Commerce
or industry association events
Product/Service
Prospecting
activities are organized around product or service offerings
Company offer “summer products,” like garden furniture. Marketing starts at the end of winter since there is no interest in
tehm
during Fall and WinterSlide16
Module 6: prospecting
Examples
Strategy/App
roach
Description
Example
Enterprise
Prospecting activities
are planned as a function of corporate objectives
Your company is opening new branches, launching a new product, addresses a new competitor, prospecting activities will focus on these corporate
priorities
Sales Representatives
Prospecting activities driven by sales resource ability and availability
Shrinking
team means less prospecting capability. Increased budget means more activity or more
elborate
activity, better tools, etc.Slide17
Module 6: prospecting
Prospecting ApproachesDirect - Sales Representative
takesthe
initiative to approach the prospect and build the relationship
Indirect – by referral. Sales representative is introduced to the prospect through a mutual acquaintance
As mentioned previously, this is the difference between a “cold” call (direct) and and “warm” call (indirect)
Following, is a summary of some direct and indirect prospecting approaches:Slide18
Module 6: prospecting
App
roach
Description/Function
DIRECT
Correspondence
(mail or email)
This type of initial communication is more personalized that a mass mailing or general advertisement
Lower costs
Mass Mailing
Non-personalized. Usually, blankets a geographic area or a marketing list. Sometimes goes to a specific person
Results not a good as with Correspondence
Costs vary
dending
on quality of mass mailing itemsSlide19
Module 6: prospecting
App
roach
Description/Function
DIRECT (Continued)
Telemarketing
Personal contact using telephone in order to set up a meeting
Less costly than in person prospecting
Results can be quite interesting in certain markets
In-Person
In consumer area, this is door-to-door prospecting
Also known as “cold calling,” in the sense that your
prospect is not previously aware of your visit, or call
Comparatively high cost, time consuming
Results vary greatly
Advantage: good technique for collecting information on prospects in a common geographic areaSlide20
Module 6: prospecting
App
roach
Description/Function
INDIRECT
Recommendation
From a current customer, colleague, or personal contact
Lead from Supervisor
Boss sends you a lead that needs to be called
Advertising
Purchase of air, TV, radio, web, magazine, or billboard space. Social networking and blogging
from Events
Market events that bring together people and businesses with a common interest
Expensive, usually effective
Time consuming and very disciplined follow-up requiredSlide21
Module 6: prospecting
Other Useful Prospecting Approaches
Staying focused and committed to RESULTS
Digital Marketing – SEO,
Adwords
, blogs, web site
Social Networking – product placement and endorsement
Telepresence
– Webinars (WebEx, Go-to-Meeting)
“Show Me the Money!” - YouTube/
Vimeo
, Online ads
Online Sales –
eCommerce
, auctions
Contests
The Importance of Loyalty Programs, RecognitionSlide22
Module 6: prospecting
Establishing Your PresenceBecoming an integral part of your territory is important
Where to potential clients socialize?
Professional associations, social clubs
Publishing articles in industry papers, web sites
Purchasing advertising space in industry periodicals, etc.
Participate in industry
evets
: golf tournaments, networking breakfasts, workshops, conventions, etc.)Slide23
Module 6: prospecting
Re-Approaching Neglected CustomersA great opportunity to work a “patch” that has been identified as fertile but that nobody has been tending to
Need to look beyond customers’ initial cynicism
Obtain valuable marketing insight into needs, size of demand, and what went wrong last timeSlide24
Module 6: prospecting
Addressing Product/Service ObsolescenceUpgrading old equipment, software, processes, etc. is a l
ucrative business
Puts the sales representative in a more consultative type of role – very effective sales positionSlide25
Now, you do it!
Activity 6.1.1
Go to class web site, Modules 6 and 7, Class 32 and download Activity 6.1.1
Answer all questions and cases
Save as: Activity611_FirstName_LastName.docx