BUS633: Sales Management

2a. Demonstrate five methods of prospecting for new customers

• What are methods for prospecting for new customers?
• How can a salesperson obtain a new customer?
• Why is it important to obtain new customers?

Prospecting new customers is part of every salesperson's job, and there are various methods for accomplishing this task. These methods might include referrals, making warm calls or emails, connecting on LinkedIn, or creating partnerships with others to get the sale, etc. Some salespeople may be better at building these relationships, while others may have to work on the process.

By better understanding the prospecting process, a salesperson may easily gain new customers or build relationships that may later become fruitful in gaining new customers. It is important that, as a salesperson, you are consistently trying to better yourself and improve your knowledge about the products you sell. This may be useful in the future as you prospect for new customers.

To review, see Sales Process and Prospecting.

2b. Use demographics, psychographics, and geographics to identify potential customers

• How can demographics be used to identify new customers?
• How can psychographics be used to identify new customers?
• How can geographics be used to identify new customers?

The use of demographics, psychographics, and geographics allows a marketer to segment the market and potentially identify potential customers. Psychographics allow a glimpse into the personality, lifestyle, traits, and/or values of a consumer, and understanding these traits may help in understanding the purchasing process. By combining psychographics and demographics, a marketer can narrow down a specific target market to determine which potential customers they may sell to. Geographic segmentation includes targeting customers by their physical location.

For example, a salesperson may want to know the average age of people who buy a certain product and discover people in their 60s are the target market, and by combining certain lifestyle traits of people in that age range, this is considered demographic information, and it helps to better understand the target market.

By segmenting customer information with demographic, psychographic, or geographic information, a salesperson may be able to better define their target market.

To review, see Segmenting, Targeting, and Positioning.

2c. Evaluate how a potential customer becomes a qualified prospect

• How might a potential customer become a qualified prospective customer?
• Why is it important to understand qualified prospects in sales?
• What is the process of qualifying a potential prospect?

By analyzing certain information about a potential customer, you may be able to determine if they are a qualified prospect for the product you are attempting to sell. By reviewing customer information, getting better-qualified leads, and understanding exactly who you are targeting, you can determine if a potential customer is a good prospect.

You may be able to analyze potential customers by determining who needs your product, if they can afford to pay for the product, or if they can authorize the purchase of the product. These phases may help you to better determine qualified prospects for your products and turn potential customers into long-term customers.

To review, see Generating More Qualified Leads.

Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• demographic information
• geographics
• potential customer
• prospecting new customers
• psychographics
• qualified prospect