MKTG 313 Chapter Notes - Chapter 9-16: Active Listening, Customer Attrition, Sales Process Engineering
Marketing 313 Chapters 9-12
Prospect
An individual or business who meets the qualification criteria established by you or your
company
Prospecting
Account development
Business development
three terms that could mean "developing new potential customers"
Account Business Development (ADR)
Drive sales opportunities by staging introductory sales meetings, product demonstrations, and
on-site meetings for the field sales organizations
Collaborate with other levels of management to maintain an effective level of prospecting
activity & growth
customer attrition
the loss of customers
1. One-time need
2. Movement outside of territory
3. Firm goes out of business or merges with another company (merges are usually failures)
4. Buyer employee changed positions (promotion, retirement, resignation)
5. Competition gained customer
5 Causes of Customer Attrition
Ferris Wheel Model - Joe Girard
the model that demonstrates customer attrition & the process of old customers being replaced
by new customers
1. Increase the number of people or accounts who board the Ferris wheel
2. Improve the quality of the prospects who board the Ferris wheel (high-profit potential)
3. Shorten the sales cycle by quickly determining which of the new prospects are qualified
prospects - qualified as to need, authority to buy, ability to pay, and authority to purchase the
product
3 Strategies to Improving the Quality of Prospecting
sources of prospects
the ways a salesperson develops a prospecting and account development system (referrals,
friends, family, website, networking, seminars, trade sales)
trade shows
find more resources at oneclass.com
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research shows this is a good place to gather prospects and close sales
cold calling
when a salesperson selects a group of people they believe will make good prospects and then
call upon them (by phone or personal visit).
elevator presentations
30 second message that summarizes you, your company, and your product line
social network
one's set of direct and indirect contacts
1. Networking within your organization
2. Networking outside your industry
3. Networking within your industry
Networking Model
Qualifying
the process of identifying prospects who appear to have a need for your product and should be
contacted
does the prospect or account...
1. have a need for my product?
2. have the authority to buy?
3. have the financial resources to buy?
4. have the willingness to buy?
4 Basic Questions salespeople need to answer about a prospect in order to qualify them
CRM systems
used by salespeople to help them organize their prospecting information & sales data
The Portfolio Model
this model uses account opportunity (forecasted sales) and competitive position (the ability to
capitalize on the opportunity) to classify how much sales effort should be made on individual
accounts in the prospect database
Sales Process Model
total set of accounts being pursued at any given time (classify prospects based on where they
are in the sales process)
Pipeline Management
process of managing all the prospects in the salesperson's sales funnel to ensure that sales
objectives are being met
find more resources at oneclass.com
find more resources at oneclass.com
