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Unit 3: Process of Personal Selling

first step is to identify the prospects, while the second is to find the qualified potential customers Notes
and establish their validity. The removing of suspects from the list of prospects is also an
important part of the job.

Identification of Prospects

Identification of prospects is a taxing job and every sales person should try to collect information
about the potential customers from all available sources. Some of the sources and techniques
employed for finding prospects are as follows:
Current Customers

The current satisfied customers act as one of the best source of prospective customers. Besides
they are also easier to attract while selling additional goods and services.

Referrals of Satisfied Customers or Endless Chain

The satisfied customers act as a good source of referrals; sales persons ask the existing satisfied
customers for names of relatives, friends or business associates who might need similar product
or service. When the sales person contacts these prospects for sale they provide further
information or referrals regarding more potential customers. Thus, the process continues and
hence is called the 'Endless Chain'. Such a source has been employed for selling Reader's Digest.

Centre of Influence

This technique is based on referrals by a person, who has information about other people or an
influence over them. Such a person can help a sales person to identify good prospects. Some of
the categories of people to whom such persons belong are housewives, bankers, local
politicians, etc.
Spotters /Sales Trainees

Sometimes a company employs sales trainees specifically for helping the sales persons identify
the prospects. The sales trainees are referred to as 'spotters'. This greatly helps in reducing the
time and effort required for qualifying a prospect by the sales person alone.

Cold Canvassing

This technique basically involves calling on a potential customer without any prior appointment.
Here, the sales person just goes in and introduces himself to the prospect and inquires about the
need of the product or service by the prospect. But this technique involves a lot of time and effort
as a large number of calls do not materialize.

Directories

Directories are an abundant source of finding potential customers. Besides the regular telephone
directories, membership directories of trade associations and professional societies or civic and
social organisations are a good source for prospects.

Mailing List

Certain organisations compile lists of persons and organisations for direct mail advertisers,
pamphlets, etc. Such lists can also be employed to identify sales prospects. One leading advantage

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