Section 12.2 Preparing for the Sale

Marketing Essentials Section 12.2 Preparing for the Sale

SECTION 12.2 Preparing for the Sale What You'll Learn • Sources for developing product information • Prospecting sources and methods • How leads are developed • Preparation for the sale in business-to-business selling and retail selling

SECTION 12.2 Preparing for the Sale Why It's Important As a salesperson, you will need to prepare for the sale by learning about the industry and the products you will be selling. In specific sales situations, you may also need to find customers. The tools and techniques for accomplishing these tasks are covered in this section.

SECTION 12.2 Preparing for the Sale Key Terms • preapproach • prospect • referrals • endless chain method • cold canvassing

SECTION 12.2 Preparing for the Sale The Preapproach The preapproach is getting ready for the face-to-face encounter in a selling situation. Salespeople do the following to prepare for the sale: • Study their products. • Keep abreast of industry trends. • Research potential customers. • Develop familiarity with their company's policies and procedures.

SECTION 12.2 Preparing for the Sale Product Information Product knowledge is essential for success in selling. The following are some of the ways salespeople find product information: • Direct experience—using the product • Written publications—manuals, warranties, catalogs • Other people—previous users, supervisors, manufacturer's representatives • Formal training

SECTION 12.2 Preparing for the Sale Industry Trends Sales representatives read periodicals related to their trade to gain insight into the industry. All industries have trade publications related to their industry.

SECTION 12.2 Preparing for the Sale Sources and Methods of Prospecting • A prospect, or a lead, is a potential customer. There are seven main methods for developing prospects: • newspapers • commercial lists • customer referrals • cold canvassing • employer leads • telephone directories • trade and professional directories Slide 1 of 4

SECTION 12.2 Preparing for the Sale Sources and Methods of Prospecting • Employer Leads Most businesses try to generate prospects but also rely on salespeople to find new customers. • Telephone Directories TheWhite Pages is a list of names and phone numbers of potential customers. The Yellow Pages can be useful for B2B prospecting. Slide 2 of 4

SECTION 12.2 Preparing for the Sale Sources and Methods of Prospecting • Trade and Professional Directories These can help B2B salespeople locate customers by industry. • Newspapers Birth announcements provide leads for insurance salesmen. Notices of mergers and new businesses provide leads for B2B salespeople. • Commercial Lists Some companies specialize in providing lists of potential customers categorized by education, income, etc. Slide 3 of 4

SECTION 12.2 Preparing for the Sale Sources and Methods of Prospecting • Customer Referrals Satisfied customers refer their friends and relatives. This is called the endless chain method. • Cold Canvassing Potential customers are selected at random, such as by going door-to-door or through the phone book. Slide 4 of 4

SECTION 12.2 Preparing for the Sale Preparing for the Sale in Business-to-Business Selling If the sales call is with an existing customer, the salesperson analyzes past sales records and reviews notes about the customer's personality, family, and interests. Slide 1 of 2

SECTION 12.2 Preparing for the Sale Preparing for the Sale in Business-to-Business Selling • If the sales call is with a new customer, the salesperson must research answers to the following questions, usually through a phone call to the customer: • Does the prospect need this product or service? • Does the prospect have the financial resources to pay? • Does the prospect have the authority to buy? Slide 2 of 2

SECTION 12.2 Preparing for the Sale Preparing for the Sale in Retail Selling Since the customer comes to you, retail preparation includes: • Straightening, rearranging, and replenishing the stock. • Adjusting price tickets before and after special sales. • Learning where stock is located and how much is available. Slide 1 of 2

SECTION 12.2 Preparing for the Sale Preparing for the Sale in Retail Selling • Taking inventory. • Arranging displays. • Vacuuming the floor, dusting the shelves, and keeping the selling area neat and clean. • These activities keep you familiar with the merchandise and makes it easier to find things for customers. Slide 2 of 2

ASSESSMENT 12.2 Reviewing Key Terms and Concepts 1. What are four categories for sources of product information? 2. Why don't all businesses require salespeople to find prospects? 3. Name five sources of prospecting. 4. What is the difference between the endless chain method and cold canvassing as methods for prospecting? 5. What is the focus of the preapproach in retail sales?

ASSESSMENT 12.2 Thinking Critically • You have been asked to research a new prospect for your boss. Your research of this lead found that the company's owner is a 90-year old sole proprietor. The company is financially sound and pays its bills on time. The only concern is that there is no heir-apparent (someone to take over if the owner is no longer capable of running the business). Would you qualify this prospect as a worthy customer? Why or why not?

Marketing Essentials End of Section 12.2

Section 12.2 Preparing for the Sale