Final answer:
Not all sales leads are good prospects; qualified prospects have the need, authority, and financial capability to purchase. Understanding these characteristics helps to distinguish a qualified prospect from a general lead.
Step-by-step explanation:
Not all sales leads are good prospects. A good prospect typically has certain characteristics that indicate they are likely to become a customer. These characteristics can include a demonstrated need for the product or service, the authority and ability to make purchasing decisions, and the financial capability to buy.
A qualified prospect usually aligns well with a company's ideal customer profile. For instance, if a company specializes in business software, a qualified prospect might be a business that has expressed interest in improving its software systems, has a budget for new software, and the decision-making power resides with the contact person.
In contrast, a lead that does not have clear needs, lacks budget, or has no decision-making authority would not be considered a qualified prospect, illustrating that not every sales lead will be a good fit for what the company is offering.
Considering the crucial attributes such as authority, need, and financial capability are essential in distinguishing qualified prospects from general leads and improving the efficiency of sales efforts.