Explain the characteristics of a good prospect.
Explain the characteristics of a good prospect.
A prospect is a potential customer who may be interested in purchasing the product. A good prospect has the following characteristics:
- (1) Need (Necessity) — The prospect must have a genuine need or desire for the product or service; without need, there is no reason to buy.
- (2) Financial Ability (Money) — The prospect must have the financial capacity and purchasing power to afford the product.
- (3) Authority (Decision-Making Power) — The prospect must have the authority to make the purchase decision; in B2B sales, this means the person who signs the purchase order.
- (4) Accessibility — The salesperson must be able to reach and approach the prospect; an inaccessible prospect cannot be converted into a customer.
- (5) Eligibility — The prospect must be eligible to buy, e.g., a minor cannot purchase alcohol, and a company without proper licences cannot buy certain industrial equipment.
- (6) Willingness — The prospect should be open to hearing about the product and willing to engage in a sales conversation.
Marking Scheme
- 11 mark: correct definition of a prospect — a potential customer with the need, ability, and authority to buy.
- 22 marks: any four correctly explained characteristics at half mark each — need, financial ability, authority to decide, accessibility, legal eligibility, willingness.
Hint
Think of the acronym MAAN-EW: Money, Authority, Accessibility, Need, Eligibility, Willingness — cover all six and briefly explain each.
Quick Oral Answer
A good prospect has a genuine need for the product, the financial ability to pay, authority to make the purchase decision, is accessible to the salesperson, is legally eligible to buy, and shows willingness to engage with the salesperson.
Analysis & Explanation
Prospecting is the foundation of the personal selling process — a good prospect is identified by checking six qualifying characteristics before a salesperson invests any selling effort.
Concept
- Need is the starting point — a solution without a problem has no market.
- Financial ability separates those who want the product from those who can pay for it; without purchasing power a prospect is merely an admirer.
- Authority matters most in institutional/B2B settings, where a junior employee may be enthusiastic but powerless to decide.
- Accessibility ensures the salesperson can reach the prospect physically or digitally at reasonable cost.
- Eligibility covers legal, contractual, or regulatory barriers — e.g., minors cannot buy alcohol, and some financial products are restricted by residency.
Common mistakes
- Confusing "willingness" with "need" — a person may need a product but be unwilling to buy (brand loyalty to a competitor), or be willing but have no real need (an impulsive buyer).
- Ranking the six characteristics instead of treating all of them as equally necessary.
Real-world
- CRM software today automates prospect scoring by weighting these exact six parameters.
Common Mistakes
- 1Listing fewer than six characteristics — the standard CBSE answer requires all six: need, financial ability, authority, accessibility, eligibility, and willingness.
- 2Confusing 'willingness' with 'need' — a customer may need a product but be unwilling to engage, making them two separate qualifying criteria.
- 3Omitting 'eligibility' entirely — students skip the legal/regulatory dimension (e.g., minors cannot buy certain products), losing marks.
Previously Asked
What qualities should a salesperson look for when identifying a good prospect?
Explain any three characteristics that make a person a qualified prospect.
What criteria does a salesman use to evaluate whether a lead is a genuine prospect?
Interesting Facts
Studies show that salespeople spend nearly 35% of their time on non-selling activities, including prospecting — making efficient prospect qualification one of the highest-leverage skills in the profession.
The concept of BANT (Budget, Authority, Need, Timeline) used by IBM in the 1950s is essentially a modern formalization of the same prospect characteristics taught in CBSE salesmanship — showing how timeless these principles are.
In insurance sales, companies use actuarial data to determine 'eligibility' — certain health or age conditions can disqualify a person from specific policies, making eligibility a legally enforced characteristic rather than just a sales concept.
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Frequently Asked Questions
What is the most important characteristic of a good prospect?
Need is generally considered the most fundamental characteristic. Without a genuine need for the product or service, even a financially capable and willing person cannot be converted into a customer. However, all six characteristics — need, financial ability, authority, accessibility, eligibility, and willingness — must ideally be present together for someone to qualify as a good prospect.
What is the difference between a prospect and a lead in personal selling?
A lead is simply a name or contact — someone who might potentially be interested in a product. A prospect is a qualified lead who meets specific criteria: they have a need, the financial ability to buy, the authority to make the purchase decision, are accessible to the salesperson, are eligible (no legal or contractual barriers), and show willingness to engage. Not every lead becomes a prospect.
Why is 'authority' listed as a characteristic of a good prospect?
Authority refers to the prospect's power to make or influence the buying decision. In many situations — especially B2B or family purchases — the person a salesperson speaks to may not be the actual decision-maker. Spending time persuading someone without purchasing authority wastes resources and rarely results in a sale. Identifying the true decision-maker is critical to efficient prospecting.