Exam 9: Developing and Qualifying Prospects and Accounts

Networking is another word for prospecting.

When a salesperson asks a customer to prepare a note or letter of introduction that can be delivered to the potential customer,this person is using which prospecting method? A)networking B)mail inquiry C)cold canvass D)referral E)trade show

Which of the following is most likely a true statement regarding prospecting?

The practice of marketing goods and services through telephone contact is known as ________.

Sales intelligence is another term for sales data collected on customers.

Educational seminars are most likely a good source of prospects because: A)people who pay for a seminar will buy products B)salespeople need help conducting demonstrations C)most seminar attendees are referrals D)product benefits and features can be showcased E)salespeople can build a close into the keynote speech

The procedure used to obtain names of potential prospects from current prospects and customers is called ________.

A downside to focusing too much effort on prospects with little potential is: A)the pipeline may become hard to keep track of with CRM software B)managers may assign some prospects to other salespeople C)too little resources are available to focus on prospects with high potential D)a salesperson may forget customers' names E)sales commissions may max out the compensation plan

Joe Girard's"Ferris wheel"concept illustrates how many calls it takes to close a sale.

Qualifying is the process of identifying prospects who should be contacted.

CRM software is useful because customer information is most likely: A)shared with competitors B)available to many people in the company C)stored locally on the salesperson's computer D)updated automatically by the CRM provider E)changed only with the approval of a supervisor

Charles Lin has just been hired by Frederick Company to replace a sales representative who is retiring after 40 years with the company. The older representative is training Charles on procedures and customers in his territory for three weeks before he retires, and Charles knows this is a huge opportunity to learn about the prospect base. When Charles asks which CRM system the company uses, the older representative says, "Everyone else here uses some computer program called Salesforce, but I won't touch it. I know my customers like the back of my hand! I never needed to write anything down." Charles is concerned. He used Salesforce in college and knows how vital it is to have customer information, sales records, preferences, and conversations recorded. He talks to the sales manager, who tells him the representative's sales were decent, and all his invoices came in, so they left him alone and never forced him to use the CRM system. -How does the retiring representative's decision to not use a CRM system most likely affect Frederick Company? A)Customer knowledge is likely lost rather than passed on to the rest of the company. B)The sales representative's territory is not maximized because of poor strategy. C)The entire company's pipeline forecasts cannot be maintained or calculated. D)Organizational culture is damaged because of a lack of team spirit. E)Hiring practices are hindered because of poor mentoring methods.

The portfolio model of classifying prospects involves: A)assigning each prospect a rating B)using multiple factors to classify prospects C)determining where a prospect is in the sales process D)using a sales forecast to predict which prospects will buy E)using external industry research to identify and qualify prospects

Which of the following questions is most relevant to qualifying a prospect? A)How long has the prospect been interested in the product? B)Does the prospect know the firm's decision maker? C)Can the prospect make the buying decision? D)Can the prospect pay in cash for the purchase? E)Has the prospect purchased anything similar before?

Joe Girard's"Ferris wheel"concept assumes which of the following? A)The optimal ratio of customers to prospects is 66 percent. B)If the customers are sold the correct product and given good service,a company will not lose customers. C)A certain number of customers will be lost every year by most companies. D)Departing customers must be replaced by new customers at an equal rate. E)Salespeople will do better prospecting when they think of the process as a roller coaster.

The"endless chain"prospecting technique is easy to use because it fits naturally into most sales presentations.

Joe Girard,popular sales trainer and consultant,used the"________"concept to illustrate the relationship between prospecting and the loss of customers due to attrition.

Which of the following is true regarding doing business in Germany?

How could the sales representative use CRM technology to pinpoint companies that might have more untapped buyers? A)Compare the names of the contacts for each company in the CRM to the names on the invoices paid by the companies. B)Run a pipeline report to see how many potential sales could close within the next 60 days. C)Run a pipeline report for this year and then one for the same month a year ago to compare numbers of prospects at each stage in the pipeline. D)Look at the task list to see if there are prospects to be called that salespeople have missed. E)Analyze sales reports in terms of company populations to find sales that are too small to be the entire company and may just be one department.

Using an existing customer as an intermediary-presentation of a letter or note-can reduce the amount of time spent on prospecting.