CHAPTER 5
Strategic Prospecting and Pre-approach
The Strategic Prospecting Process
Sales
Funnel or
Pipeline:
A
representation
of the trustbased sales
process and
strategic sales
prospecting
process.
A process designed to
identify, qualify, and
prioritize sales
opportunities, whether
they represent
potential new
customers or
opportunities to
generate additional
business from existing
customers.
Strategic Prospecting Process
Sales Leads or Suspects
• Generated from Internal or External
Sources
• Lead Generation Methods Should be
Managed
Qualifying Process
• Need?
• Financial Resources
• Authority to Make Purchase Decision
Ideal Customer
Profile:
The
characteristics of
a firm’s best
customers or the
perfect customer.
Sales Prospect
• Prioritize Prospect List
• Initiate Pre-Call Planning
The Importance and
Challenges of Prospecting
 Customer-bases are not permanent, salespeople may lose
customers due to:




Low satisfaction
Competition
Economic fluctuation
Other forms of attrition
 The prospecting process is can be long
 It may take weeks to replace a lost customer
with a new one
 Revenue streams can fluctuate if “pipeline” isn’t managed
 Prospecting isn’t easy and often includes a lot of rejection
In-Class Exercise – Prospecting
IDENTIFYING LEADS
Turning Suspects/Leads Into Bona Fide Prospects
 Identify MAD Customers
Money to Buy
Authority to Buy
Desire to Buy
Qualified Prospects . . .
 Can benefit from the sales offering
 Have the financial wherewithal to make the purchase
 Play (individual) an important role in the purchase
decision process
 Are eligible to buy based on a fit within the selling
strategy
 Are reasonably accessible and willing to consider the
sales offering
 Can be added to the customer base at an acceptable
level of profitability
Popular Prospecting Sources & Methods
Personal Contact
 Observation
 Cold Canvassing
 Trade Shows
 Spotters
 Sales Seminars/Educational
Forums
Popular Prospecting Sources & Methods
Internal Sources

Company Records

Lists and Directories

Advertising Inquiries

Telephone Inquiries

Mail Inquiries

Internet or World
Wide Web
Popular Prospecting Sources & Methods
External Sources

Referrals

Introductions

Community Contacts
(Centers of Influence)

Organizations

Non-competing
Salespeople

Visible Accounts
Nature and Importance of Qualification
 The nature of the qualifying task is different for
various types of personal selling
 Salespeople must be resourceful and should
devote time and effort to the search and
qualification phase
Prospecting Plans are the Foundation for Effective
Prospecting
Set Goals
Establish daily,
weekly and
monthly quotas for
acquiring new
prospects
Prospecting Plans are the Foundation for Effective
Prospecting
Set Goals
Allocate Time
Establish a regular
daily schedule for
conducting
prospecting
activities.
Prospecting Plans are the Foundation for Effective
Prospecting
Set Goals
Allocate Time
Keep Records
Track your results
from using the
different prospecting
methods.
Prospecting Plans are the Foundation for Effective
Prospecting
Set Goals
Allocate Time
Keep Records
Evaluate
What is working for
you? Compare
results and use the
methods that work
best for you.
Prospecting Plans are the Foundation for Effective
Prospecting
Set Goals
Allocate Time
Keep Records
Evaluate
Stay Positive
Develop confidence
by knowing your
products and
believing that you
offer the best
solutions.
Developing a Strategic Prospecting Plan
Important Pre-Approach Information
Examples include:
 Client name and pronunciation
 Risk/type of buying situation
 Communication style/profile of the buyer (may not be able
to assess till several visits)
 What is the market position of the company
 Major competitor(s) of the company
 Industry condition/intelligence
 Challenges the organization may be facing
 Company characteristics – size, division, decision makers,
etc.
In-Class Exercise
CASE: STRONG POINT
FINANCIAL SERVICES