Page 377 - Introduction to Business

CHAPTER 10 Developing the Promotion and Distribution Mixes 351

Prospecting, getting the sales interview, planning the sales presentation, and effec-
tive routing are important aspects of prepresentation planning. Prospecting allows
the sales force to make effective use of time, increases the sales volume obtained,
and increases compensation. Prospecting refers to a ranking of possible customers prospecting Ranking of possible
according to their potential sales volume and the likelihood of their purchasing the customers according to their potential
sales volume and the likelihood of their
product. That likelihood is a result of a number of factors, including how closely the
purchasing the product
product’s benefits satisfy needs and desires, how satisfied a prospect is with current
products, and so on. A customer who has a potential sales volume of $20,000 and a
probability of purchasing of .7 is a better prospect than one who has a potential
sales volume of $10,000 and a probability of purchasing of .3 ($20,000 .7
$14,000; $10,000 .3 $3000).
Many successful salespeople are in the habit of making appointments before
sales calls, as up to 40 percent of all sales calls fail to identify a potential buyer. Thus,
the smart salesperson sets up a sales interview in advance. This significantly
reduces the possibility of not having a prospect with whom to talk. With the sales
interview established and prospecting accomplished, the actual sales presenta-
tions can be planned. Products to be presented can be decided on, as well as prod-
uct features and benefits that best satisfy customer needs and desires. Sales per-
sonnel use features to develop benefits. Benefits are what sell products and are
emphasized in the presentation (see Exhibit 10.5). Then, the salesperson develops
an outline of the presentation or a word-by-word presentation. The latter is more
likely to be used in formal presentations to buying committees of large companies.
While planning the presentation, the salesperson also considers which audio-
visual aids to use and when in the presentation they should appear. Audiovisual
aids often increase the effectiveness of a presentation. Popular examples of
audiovisual aids include overhead projectors, slides, movies, and PowerPoint
presentations.
Effective routing involves the sequence in which customers and prospects will be
contacted. Which streets or highways to be traveled, how long it will take to get from
one customer to the next, and how long to stay with each customer are factors to be
considered. In developing the route, a salesperson tries to reduce the travel time
because it will result in lower travel costs for the company and more selling time.
More selling time should increase sales volume and the salesperson’s compensation.

EXHIBIT 10.5

Features and Benefits of an Attaché Case

General Feature Specific Feature General Benefit Specific Benefit
Dimensions 12” by 20” inside Convenience Can put two regular-sized
dimensions file folders side by side
Dimensions 5” deep Convenience Will accommodate books,
thick reports, toilet articles,
pocket-sized calculator, and
pocket-sized tape recorder
1
1
Dimensions 5” by 12 ⁄2” by 20 ⁄2” outside Convenience Will fit under seat in airplane
dimensions
Weight 1 lb Comfort Easy to carry
Materials Aluminum construction Durability Will last 10 years
Price $75 Cost savings Costs only $7.50 per year,
or about 2¢ a day
Attachments Combination lock Security Protects valuable papers

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