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MKT504 Exam Notes (CH9-16).docx

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Ryerson University
MKT 504
Roy Morley

CHAPTER 9: DEVELOPING & QUALIFYING A PROSPECT BASE - MAIN PURPOSE OF SALESPERSON: to create customers, not to create sales - Prospecting: systematic process of identifying potential customers - Prospect: potential customer, meets qualifications established by company - Prospect base: list of current & potential customers - Customer attrition: inevitable loss of customers over period of time (15-20% average/year) - Common causes of Customer Attrition: 1. One-time need or extended period of time b/w purchases 2. Customer moves out of salesperson’s territory 3. Firm goes out of business or merges with another 4. Buyer leaves position 5. Sales lost to competition - “Ferris Wheel” Concept: as ppl get off the operator fills their seat one at a time, moves wheel a little, etc. until all original riders have been replaced with new ones - Systematic Process of Locating Potential Customers: inc. # of ppl who board ferris wheel, improve quality of prospects who board, shorten sales cycle by determining which new prospects with need, authority to buy, ability to pay, willingness to purchase product - Referral: prospect recommended by current customer or by someone who is familiar with product - Germany = Low context (words matter); China = High context (words are nbd, relationships matter) - Website: collection of web pages maintained by a single person or organization - “Bingo Cards”: postage-free response cards given to potential buyers that desire more product info - Cold Calling: select group of people who may/may not be prospects are called (phone or visit) - Networking: making and using contacts within organization, within industry, outside industry - Social network: set of direct and indirect contacts - Qualifying: identifying prospects who appear to have need for product & are contacted - Sales Intelligence: beyond data, access to insights into prospect’s marketplace, firm, competitors - Account Analysis: estimate sales potential for each account - Portfolio Model: classify how much sales effort to be made of individual accts in prospect database TOP TO BOTTOM (High-Low) = Account Opportunity: forecasted sales LEFT TO RIGHT (Strong-Weak) = Competitive Position: ability to capitalize opportunity  Strategic Accts (High Strong): resource intensive, attractive & necessary, protect from competitors, service to meet needs  Problem Accts (High Weak): moderate coverage, attractive, but only if competitive weakness can be overcome, careful planning & execution, deserve some effort because of potential  Hold Accts (Low Strong): Moderate coverage, moderately attractive if current sales can be maintained with limited commitment of resources, close monitoring, do not commit beyond their potential  Drag Accts (Low Weak): limited coverage, NOT attractive, manage by methods other than selling, require resource commitments beyond potential, performance improved if they buy from competitor - Sales Process Model AKA Sales Funnel Model: total set of prospects being pursued at any given time; classify prospects based on where they are in sales process (stacked bar graph where each bar represents a process and each stack on bar represents a month) - Calculate funnel: Total Sale x Forecast Amt for successfully closing sale - Balanced Funnel: portfolio of prospects where there is sufficiently large # of prospects at each stage in sales process - Pipeline Management: managing all prospects in salesperson’s sales funnel to ensure sales objectives are met - Pipeline Analytics: Ability to conduct sophisticated data analysis and modelling to generate new reports regarding movement of prospects through sales funnel - Pipeline Dashboard: At-a-glance visualizations that define, monitor, analyze relationships existing the pipeline of sales funnel. CHAPTER 10: APPROACHING CUSTOMER WITH ADAPTIVE SELLING - Presentation Strategy: prescriptions (1) establishing objective, (2) developing presale presentation plan to meet objectives, (3) renewing commitment to provide customer service - Preapproach: precede sales call & set stage for personalized sales approach; tailored to specific needs of prospect; planning of actual meeting with prospect - Approach: first contact with prospect, Objectives: (1) build rapport, (2) capture their full attention, (3) generate interest in what you’re selling - Action Objective: something you want customer to do during sales presentation - Six-Step Presentation Plan: preparation for what will take place during presentation  Approach, Presentation/Needs Discovery, Demonstration, Negotiation, Close, Servicing of sale - Telesales: using phone to acquire info about customer, determine needs, suggest solutions, negotiate buyer concerns, close the sale - Social Contact / Building Rapport: comment on here-and-now observations, compliment, search for mutual acquaintances or interests - Convert Buyer’s Attn & Arouse Interest  Agenda Approach: thank customer for their time, then tell them the agenda of convo  Produc
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