Chapter 5
Strategic Prospecting and
Preparing for Sales Dialogue
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accessible website, in whole or in part.
1
Learning Objectives
After studying this chapter, you will be able to:
5-1
Discuss why prospecting is an important and challenging task for salespeople.
5-2
Explain strategic prospecting and each stage in the strategic prospecting process.
5-3
Compare the major prospecting methods and give examples of each method.
5-4
Utilize the important components of a strategic prospecting plan.
5-5
Describe the types of information salespeople need to prepare for sales dialogue.
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5-1
The Importance and
Challenges of Prospecting
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5-1 The Importance and
Challenges of Prospecting
• Salespeople who do not regularly prospect lose customers due to:
− Changes in market conditions
− Competitive activity
− Dissatisfaction with the product, the salesperson, or the selling firm
− Changes in buying behavior
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accessible website, in whole or in part.
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5-2
The Strategic Prospecting Process
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5-2 The Strategic Prospecting Process
• Strategic prospecting*: 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.
− Viewed as a sales funnel* or sales
pipeline*
* Words accompanied by an asterisk are key terms from the chapter.
Ingram et al., SELL, 7th Edition. ©2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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Knowledge Check
What is the first step in the strategic prospecting process?
A. Preparing for sales dialogue
B. Determining sales prospects
C. Searching company records
D. Generating sales leads
Ingram et al., SELL, 7th Edition. ©2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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5-3
Prospecting Methods
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Exhibit 5.1: Prospecting Methods
Cold Canvassing
Networking
Company Sources
Commercial Sources
• Cold Calling*
• Referrals*
• Introductions*
• Centers of
Influence*
• Noncompeting
Salespeople*
• Social Media
• Company
Records*
• Advertising
Inquiries*
• Telephone Inquiries
• Directories*
• Lead Management
Sources*
• Inbound
telemarketing*
• Outbound
telemarketing*
• Trade Shows*
• Seminars*
* Words accompanied by an asterisk are key terms from the chapter.
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Discussion Activity
Have you ever been contacted by a salesperson who found you through social
media?
Have you ever used social media as a networking tool in your own life?
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5-4
Developing a
Strategic Prospecting Plan
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Figure 5.2: Prospecting Plans Are the
Foundation for Effective Prospecting
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5-5
Gathering Prospect Information
to Prepare for Sales Dialogue
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accessible website, in whole or in part.
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5-5 Gathering Prospect Information
to Prepare for Sales Dialogue
• Gathering relevant information is especially important prior to the initial sales
dialogue with a prospect.
− Basic information about the prospect
− Information about the selling situation
− Sources of information
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Exhibit 5.3: Basic Information
about the Prospect
About the Buyer
• Buyer’s name, title, and contact
information
About the Company
• Type of business
• Educational and work background
• Number of employees
• Community and organizational
involvement
• Target market served
• Hobbies and interests
• Communication style
• History of business
• Products and services offered
• Key competitors
• Current strategy and performance
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Exhibit 5.4: Information about
the Selling Situation
• Type of purchase
• Motivation for buying
• Current supplier
• Buying center members and roles
• Buying process
• Available budget
• Competitors involved
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Exhibit 5.5: Sources of Information
• Online searches
• Online and print directories
• Prospect website
• Social media
• Annual reports
• Trade and business press
• Professional organizations
• Company databases
• Contact with prospect
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Polling Activity Scenario
Marquita Day is a Business Development Manager for a community bank. Her job is to create a new
banking relationship with small firms in the local area. Many of these small firms have had relationships
with the large national banks for years. However, Marquita knows that if she can find out about a firm’s
current banking relationship and get an appointment with the firm’s owner, she has a good chance of
getting some business for her bank. Many of the small firm owners are reluctant to provide any
information about their banking relationships and are often not willing to agree to an appointment.
Marquita recently read about the large losses incurred by some national banks in their risky derivatives
trading. Although these losses were not expected to have any impact on their relationships with
business clients, Marquita thought she might be able to use their situation to get appointments and
banking information from the small business owner. Marquita would call a small business prospect and
ask if they were familiar with the losses at the large national banks. If the response indicated minimal
knowledge of the situation, she would explain the problem and discuss how these losses could have a
negative effect on business customers of the national banks. She would then ask if they had any
relationships with large national banks and for specifics. Many prospects are now willing to share
information, and many agreed to an appointment to meet with Marquita. She increased her number of
appointments and was able to translate these into significant increases in business for her bank.
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Polling Activity
What should Marquita do?
 Continue her approach because it has been very successful for her.
 Continue her approach, but she should acknowledge that the derivative
trading losses at the large national banks are not expected to have any
negative impact on banking relationships with their small business clients.
 Discontinue her approach and create a more ethical one, even if it is not as
effective as her current approach.
Ingram et al., SELL, 7th Edition. ©2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
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