Definition - What does Prospecting mean?
Prospecting is a marketing effort aimed at acquiring customers or clients (prospects) for one's product or service. There are many ways to prospect and various means of evaluating its success or failure.
Insuranceopedia explains Prospecting
There are three kinds of prospects: cold, warm, and hot.
Cold prospects are people or entities that do not yet know that a particular product or service exists. Cold prospects are reached using methods, like mass mailing or unsolicited phone calls, aimed at introducing many people to the product or service.
Warm prospects are those who are already aware of the product or service. Marketers aim to maintain communication with these prospects in the hope of moving them to the next level.
The hot prospects are those to whom you can now actually make a pitch or sell a product or service. If the prospecting effort has brought a large number of people to this level, then it can be called a marketing success.