Immediate credit too begin a project. Those who sign immediately may be offered a reduction in in interest rate.
Bird Dogs (Spotters)
Bird dogs (sometime referred to as spotters) are individuals who provide leads to a salesperson for a fee. A variety of agreements have been found to exist. Sometimes the salesperson pays the fee for each lead provided. However, the more common arrangement is for the fee to be paid only if the lead actually makes a purchase. One example of a bird dog program is the agreement that business equipment salespeople have with equipment repair personnel. When the repairperson encounters a machine that is nearing or past the end of its useful life, the contact information is provided to the salesperson by the repairperson. If the salesperson is successful in selling a new piece of equipment, the repairperson receives a fee for providing the lead.
Sales Seminars
Firms can use seminars to generate leads and provide information to prospective customers. For example, a financial planner will set up a seminar at a local hotel, inviting prospects by direct mail, word of mouth, or advertising on local television and radio, to give a presentation on retirement planning. The financial consultant discusses a technique or investing opportunities that will prepare the audience for retirement. Those present will be asked to fill out a card expressing their interest for follow-up discussions. The financial consultant hopes this free seminar will reward him or her with a few qualified prospects
“An Ethical Dilemma” illustrates the difficulty in getting sales reps reps to locate potential new business.
Qualifying Prospects
Prospect must meet criteria such as being financially capable of making the purchase, able to truly benefit from what is being sold, accessible to the salesperson, and in a position to make or support a purchase decision. In addition to these common criteria, it is likely that salespeople or their companies will impose additional criteria for qualifying prospects (e.g., salesperson can only sell to financial institutions or companies with gross sales of $10 million or more). The personal attributes of the buyer will also come into play. Honeywell has had a history of allowing their salespeople to turn prospects over to another salesperson if the personalities of the salesperson and buyer did not mesh.
Initiating customer relationships includes the search for and identification of qualified prospects. At a minimum, qualified prospects are those who:
1.Can benefit from the sales offering.
2.Have the financial wherewithal to make the purchase, whether cash, credit, or batter capacity.
3.Play an important role in the purchase decision process.
4.Are eligible to buy based on a fit within the selling strategy (i.e., they fit the profile of the desired customer).
5.Are reasonably accessible and willing to consider the sale offering.
6.Can be added to the Customer base at an acceptable level of profitability to allow a mutually beneficial relationship between buyer and seller. This is hard to judge at this stage in the sales cycle, but a preliminary assessment must be made.
In addition to those listed, there may BE ADDITIONAL CRITERIA REQUIRED by the seller based on a particular situation. Additional criteria might include: Does the buyer have a sense ken and work is piling up? Is the buyer open minded to the offering? Have the buyers been known to try new technologies or must they see it working somewhere else before they will try it? Does the buyer give feedback or must the salesperson continually probe to get any feedback at all? Some buyers will the salesperson everything they know; others will be tight lipped. Is the buyer trusting in nature, or will it take a lot of effort to win this buyer’s trust?
A firm may have a need for a new fax machine, but if the buyer is not open minded to the technology, he or she might not be a good prospect at this time. Other buyers have needs but are unwilling to listen for a variety of reasons (e.g., busy on other projects, recently burned by a salesperson and the buyer is taking it out on all salespeople). A good prospect readily gives feedback. A silent buyer makes it difficult to determine the extent of interest by the buyer. Possibly, the best prospect is the one who has a sense of urgency and wants to act now. Regular calls by the salesperson are needed to stay close to each buyer so that when a need arises, the salesperson will be positioned to get the order.
AN ETHICAL DILEMMA
Tom Linker has sold office furniture for the past 10 years. The second year he was with the company he won a district contest and placed eighth in the national contest during his third year. The past seven years have been very disappointing. Tom has had some success at getting his current clients to upgrade and make repeat purchases. His downfall has been his inability to locate new business. Tom’s boss, Larry Davis, started a new prospecting program in which each salesperson had to contact five new leads per month and discuss them at their monthly sales meetings. After several months, Tom still seems to be having problems generating new business from the leads that he has been turning in to his boss. After six months of no new business, Larry decided to investigate to find out what Tom’s problem might be. Larry had to make only three phone calls to determine that Tom has been turning in names that he has never called on! What should Larry do?
THE PREAPPROACH: GATHERING AND STUDYING PRECALL INFORMATION
Once potential customers are identified, the salesperson must begin the process of collecting information. During this stage, the salesperson gathers information about the prospect that will be used to formulate the sales presentation. Buyer’s needs, buyer’s motives, and details of the buyer’s situation should be determined. Some organizations spend a great amount of time determining the salesperson’s and buyer’s communication style. Effectively sensing and interpreting customer’s communications styles allow salespeople to adapt their own interaction behaviors in a way that facilitates buyer-seller communication and enhances relationship formation.
The more the salesperson knows about his or her buyer, the better chance he or she has to sell. Over time, the salesperson should be able to accumulate knowledge about the prospect. The information that the salesperson needs varies with the kind of product that he or she is selling. As a rule, a salesperson should definitely know a few basic things about his or her customers (e.g., the prospect’s name, correct spelling, and correct pronunciation).
Immediate credit too begin a project. Those who sign immediately may be offered a reduction in in interest rate.
Bird Dogs (Spotters)
Bird dogs (sometime referred to as spotters) are individuals who provide leads to a salesperson for a fee. A variety of agreements have been found to exist. Sometimes the salesperson pays the fee for each lead provided. However, the more common arrangement is for the fee to be paid only if the lead actually makes a purchase. One example of a bird dog program is the agreement that business equipment salespeople have with equipment repair personnel. When the repairperson encounters a machine that is nearing or past the end of its useful life, the contact information is provided to the salesperson by the repairperson. If the salesperson is successful in selling a new piece of equipment, the repairperson receives a fee for providing the lead.
Sales Seminars
Firms can use seminars to generate leads and provide information to prospective customers. For example, a financial planner will set up a seminar at a local hotel, inviting prospects by direct mail, word of mouth, or advertising on local television and radio, to give a presentation on retirement planning. The financial consultant discusses a technique or investing opportunities that will prepare the audience for retirement. Those present will be asked to fill out a card expressing their interest for follow-up discussions. The financial consultant hopes this free seminar will reward him or her with a few qualified prospects
“An Ethical Dilemma” illustrates the difficulty in getting sales reps reps to locate potential new business.
Qualifying Prospects
Prospect must meet criteria such as being financially capable of making the purchase, able to truly benefit from what is being sold, accessible to the salesperson, and in a position to make or support a purchase decision. In addition to these common criteria, it is likely that salespeople or their companies will impose additional criteria for qualifying prospects (e.g., salesperson can only sell to financial institutions or companies with gross sales of $10 million or more). The personal attributes of the buyer will also come into play. Honeywell has had a history of allowing their salespeople to turn prospects over to another salesperson if the personalities of the salesperson and buyer did not mesh.
Initiating customer relationships includes the search for and identification of qualified prospects. At a minimum, qualified prospects are those who:
1.Can benefit from the sales offering.
2.Have the financial wherewithal to make the purchase, whether cash, credit, or batter capacity.
3.Play an important role in the purchase decision process.
4.Are eligible to buy based on a fit within the selling strategy (i.e., they fit the profile of the desired customer).
5.Are reasonably accessible and willing to consider the sale offering.
6.Can be added to the Customer base at an acceptable level of profitability to allow a mutually beneficial relationship between buyer and seller. This is hard to judge at this stage in the sales cycle, but a preliminary assessment must be made.
In addition to those listed, there may BE ADDITIONAL CRITERIA REQUIRED by the seller based on a particular situation. Additional criteria might include: Does the buyer have a sense ken and work is piling up? Is the buyer open minded to the offering? Have the buyers been known to try new technologies or must they see it working somewhere else before they will try it? Does the buyer give feedback or must the salesperson continually probe to get any feedback at all? Some buyers will the salesperson everything they know; others will be tight lipped. Is the buyer trusting in nature, or will it take a lot of effort to win this buyer’s trust?
A firm may have a need for a new fax machine, but if the buyer is not open minded to the technology, he or she might not be a good prospect at this time. Other buyers have needs but are unwilling to listen for a variety of reasons (e.g., busy on other projects, recently burned by a salesperson and the buyer is taking it out on all salespeople). A good prospect readily gives feedback. A silent buyer makes it difficult to determine the extent of interest by the buyer. Possibly, the best prospect is the one who has a sense of urgency and wants to act now. Regular calls by the salesperson are needed to stay close to each buyer so that when a need arises, the salesperson will be positioned to get the order.
AN ETHICAL DILEMMA
Tom Linker has sold office furniture for the past 10 years. The second year he was with the company he won a district contest and placed eighth in the national contest during his third year. The past seven years have been very disappointing. Tom has had some success at getting his current clients to upgrade and make repeat purchases. His downfall has been his inability to locate new business. Tom’s boss, Larry Davis, started a new prospecting program in which each salesperson had to contact five new leads per month and discuss them at their monthly sales meetings. After several months, Tom still seems to be having problems generating new business from the leads that he has been turning in to his boss. After six months of no new business, Larry decided to investigate to find out what Tom’s problem might be. Larry had to make only three phone calls to determine that Tom has been turning in names that he has never called on! What should Larry do?
THE PREAPPROACH: GATHERING AND STUDYING PRECALL INFORMATION
Once potential customers are identified, the salesperson must begin the process of collecting information. During this stage, the salesperson gathers information about the prospect that will be used to formulate the sales presentation. Buyer’s needs, buyer’s motives, and details of the buyer’s situation should be determined. Some organizations spend a great amount of time determining the salesperson’s and buyer’s communication style. Effectively sensing and interpreting customer’s communications styles allow salespeople to adapt their own interaction behaviors in a way that facilitates buyer-seller communication and enhances relationship formation.
The more the salesperson knows about his or her buyer, the better chance he or she has to sell. Over time, the salesperson should be able to accumulate knowledge about the prospect. The information that the salesperson needs varies with the kind of product that he or she is selling. As a rule, a salesperson should definitely know a few basic things about his or her customers (e.g., the prospect’s name, correct spelling, and correct pronunciation).
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