Page 18 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Sales and Promotions Management

Notes 1.6.1 Prospecting

Prospecting is the process of identifying prospective buyers of the product. Prospects may be
individuals or institutions. Hence, identifying the prospects and discovering newer customer
needs and preferences is a part of prospecting. A prospect is qualified if he has the authority,
need, ability and eligibility to buy.

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 materialise.

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.

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