Prospecting

Editor's Notes

• #2 Explain the quotation – Explain how many people direct their sales effort on people who never buy.
• #3 Explain the difference between the marketing approaches of mass marketing and direct marketing.The mass marketing approach is that every enquiry is going to convert into instant sale. Hence there is one time transaction with the customer, whereas in direct marketing approach the attempt is to build a continuous relationship with the customer who might buy in future.Mass marketing uses impersonal mediums of communication. Therefore a single message highlighting the strengths of the product is communicated to all customers. However, direct marketing communication is more personalized and therefore modified according to the customers.Philosophy of mass marketing is to maximize instant conversion from sales leads because the interest has been showed by the consumer in these cases. Whereas direct marketing tries to slowly persuade the customer into buying the products.Example of Mass Marketing would be Dairy Milk Chocolates advertising “KuchMeetha Ho Jayen” on TV. On the other hand if the same brand sends e-mail to business houses suggesting that they should gift these chocolates on Diwali, the strategy would be called Direct Marketing.Both mass marketing and direct marketing have their own strengths and weaknesses. Like Mass marketing is more expensive but give quicker results. On the other hand direct marketing is relatively inexpensive but is slow in giving response. The agent can choose either or both of the 2 approaches for marketing depending on their budget, chosen segment and strategy. For example, if an agent in Pune decides to target all North Indians living in pune, it would be wiser to choose the direct marketing strategy.
• #4 Success of lead generation in mass media depends on two things,Selection of MediaCommunication MessageIt will be good to understand the demographics and psychographics of your target customers and then choosing the above accordingly.Strategies for lead generation through mass marketing include:Print Advertisements – Agents may give advertisements in local newspapers, free classifieds, etc.Posters / Boards – Agents may put posters, sun pack sheets, flex boards, pole kiosks, cloth banners, etc in target areas.Leaflet Distribution and News paper Inserts can generate leads if done effectively.Directories – Several directories like yellow pages and talking directories like Just Dial are published. These are useful in generating leads of “ready to buy” customers. They also enable the customers to find you.Video – Besides TV advertisements, video advertisements can be uploaded on internet absolutely free of cost. These can also be run on cable, local news channels or on projectors during special events and community gatherings.Complimentary brochures and booklets, ready reckoner can be made available to people.Contests and Sweepstakes can be conducted to involve the prospects.Gifts and free branded merchandise can be distributed.Participation in fairs and trade shows can generate good number of leads.Canopy activity where you can find a foot fall of target audience works equally well.Discount coupons and promotional coupons distribution can generate good data.
• #5 Lead generation activities for personalized marketing should be considered in context to the market NICHE chosen by the marketer. Public relations activities are conducted to generate word of mouth in the market. These activities should be such that people talk about your business and you in positive light. Events, speeches, seminars should be organised to appeal to the target audience. Annual reports should be sent to opinion leaders of the chosen niche to appraise them about the progress of your activities. Sponsoring programs and doing charities amongst the audience of the chosen niche. Publishing and distributing a periodic newsletter provides a subtle way of staying in touch with the database.Direct Marketing activities actually communicate your marketing message and potential sales. Direct Mailers generate very strong response, if the communication is personalized and persuasive. Telemarketing allows an opportunity to interact with the database and enable your to deliver a tailored message. SMS marketing enable a brief and instant communication. Voice SMS is the latest technology through which you can deliver a message in any language to your entire database instantly.Explain that these techniques should be used progressively to nurture the leads. It would be very important to design the message properly.Explain about not spamming. Explain about telemarketing registration with the operator. Tell about NDNC.
• #6 Direct marketing programs often require databases. These databases or leads can be either created in house or purchased from the market. However, in buying the database the following needs to be considered carefullyAge – The older the database, less effective it is likely to be. The age and freshness of data should be considered in buying the database.Available Details – A database might just provide basic details like name and contact information or more information to help in better understanding of prospects.Specific Filtering – A database can be filtered on demographic factors such as age, income, area, etc.Previous Usage – Who else has used the database in past and for what purposes.Opt In – Is it an opt-in data and what kind of communication have the users agreed to receive.Source – Source of data determines the context and chances of success with the data.
• #7 Suspects – Everyone in the purchased database is a suspect, because he might be interested in the product.Non Buying Leads – Leads generated from mass marketing efforts which have not converted into sales.Prospects – Suspects and Non Buying Leads which you feel can be converted into customers are called Prospect.The marketer should always maintain a funnel to keep churning out customers.
• #8 So what is prospecting?Prospecting is identification of potential buyers from amongst many suspects in the market. For example, we can say that every one washes clothes, so everyone is a suspect for Surf. But some people use a detergent in soap form are not prospects.All suspect leads are spoken to and qualified based on the conversation. In the qualifying process it is tested if the suspect has any attitude to buy and if he has the ability to buy. The hence filtered suspects are called prospects.We should always create a script for qualifying the prospect. The script should be written in a manner in which we speak so it does not sound canny.It would be a good idea for agents to use their staff time in screening and prospecting the enquiries. This ensures the quality time is spent discreetly only after a lead has been qualified. Also there is no point wasting time over unmotivated leads and people who do not have the ability to buy.
• #9 To qualify the suspect you shouldExplain that if the agent has a substantial number of customers already, it would give a good clue as to what type of customers tend to buy from him. A study in their profiles will reveal several useful insights.Make a list of characteristics demographic (like age, gender, income, education, family stage) and psychographic like (family stage, attitude, etc) which could help in qualifying the prospects.Create a ranking mechanism which would enable you to rank the prospects as cold / warm / hot.
• #10 Prospects could be at different stages in lead lifecycle. For example, unaware, considering, evaluating alternatives, etc. You need to create a strategy for nurturing each of these leads. All leads should be recorded, conversations should be recorded.
• #11 Explain how Excel is being used for managing leads. In the first sheet highlight the colors used to differentiate leads. In sheet 2 highlight how all remarks are being recorded.
• #12 Explain the importance of creating a budget and need for measuring the key metrics.Average Lead Cost – Campaign wise cost of generating leadsLead Conversation Ratio – Ratio of how many Suspect qualify to Prospects – This demonstrates if the marketing efforts are generating right kind of results and at what cost.Sales Conversion Ratio – Ratio of how many prospects are converting into a sale.Cost Per Sale – What is the average expenditure to generate each sale.
• #13 Explain how this sheet should be used to tract prospecting efforts.