Deck 6: Prospecting

Question 1

Salespeople use seminars and online webinars to finalize deals.

Answer 1

False

Question 2

The sales strategy of getting at least one additional lead from each person interviewed is called selling deeper.

Answer 2

False

Question 3

Trade shows are places where suppliers have sales offices and buyers from resellers visit to purchase merchandise.

Answer 3

False

Question 4

An exclusive sales territory is managed by corporate executives,while a house account includes only certain prospects in an area.

Question 5

If a salesperson determines that an individual is a good candidate for making a purchase,the individual is called a lead.

Question 6

Referrals by customers in some cultures,like Japan,are less important and insignificant than they are in North America.

Question 7

The idea that existing customers are usually prospects for additional sales is the basis of a method of prospecting called the endless-chain method.

Question 8

Prospecting is the process of making a successful sale to a customer.

Question 9

In merchandise markets,sellers are the manufacturers or distributors,and they sell only to resellers,not to the public.

Question 10

Systems integrators usually assume complete responsibility for a project from its beginning to follow-up servicing.

Question 11

When using social media to find prospects,salespeople trying to apply a pull strategy should use tactics like seller blogs,wikis,and video blogs.

Question 12

Satisfied customers,particularly those who are truly partners with the seller,are the most effective sources for leads.

Question 13

John,a salesperson,can consider Harriet to be a lead because he is certain that she will buy his company's products.

Question 14

Regardless of what product a salesperson sells,prospecting techniques are basically the same.

Question 15

A 17-year-old high school student in the United States is not a prospect for a salesperson selling alcoholic beverages because the student is not eligible to buy alcohol.

Question 16

Extranets are external databases that salespeople use for data mining purposes.

Question 17

In selling,networking simply means establishing connections to other people and then using those networks to generate leads,gather information,generate sales,and so on.

Question 18

It is usually possible for a person to be a center of influence for a salesperson and never actually buy from the salesperson.

Question 19

Instead of inviting a special group of prospects,seminars should be open to the public and discuss topics of general interest.

Question 20

Trade shows last usually longer than a month.

Question 21

Spotters are individuals who conduct business purchases on behalf of customers for a fixed fee.

Question 22

Every lead that is generated by a firm's marketing department is usually followed up by salespeople.

Question 23

The process of locating potential customers for a good or service is termed _____.

A) adapting
B) investigating
C) prospecting
D) anticipating
E) inquiring

Question 24

When the question,"Can the lead be approached favorably?" is asked to a salesperson,it refers to whether:

A) the salesperson is able to make a good first impression on most prospects he or she approaches.
B) a prospect is merely a lead or is a qualified lead.
C) the salesperson has anything to offer to a prospect.
D) a prospect has the authority to take the deal forward.
E) a prospect is accessible to the salesperson.

Question 25

For which of the following salespeople would prospecting be most important?

A) A pharmaceutical sales rep selling heart medications
B) A real estate salesperson specializing in residential property
C) Jeff,a reseller of fighter aircrafts that has exclusive tie-ups with three of the world's most powerful nations
D) An electric transformer salesperson working full time for Florida Power and Light Co.
E) A GoodStart cereal salesperson whose territory is the city of Denver

Question 26

The North American Industry Classification System (NAICS)code is useful for salespeople researching using secondary sources.

Question 27

The process of determining if a lead is indeed a prospect is referred to as:

A) sourcing a lead.
B) brokering a deal.
C) precalling a customer.
D) qualifying a lead.
E) seeding a client.

Question 28

In a lead management system,salespeople are usually excluded from the process of qualifying leads.

Question 29

Veronica is a new salesperson at an insurance company.Her primary task is to locate potential buyers of insurance products in a particular area.Veronica's activity is known as:

A) prospecting.
B) feature dumping.
C) forecasting.
D) cross-selling.
E) seeding.

Question 30

Cold calling is usually considered rude by many purchasing agents and other professionals today.

Question 31

Which of the following statements about prospecting is true?

A) The value of all qualified leads is identical.
B) Not all leads will qualify to be prospects.
C) It is unethical to use friends or relatives as sources for leads.
D) Personal observation cannot be used to find qualified leads.
E) The process of qualifying leads usually results in an increase in the number of leads.

Question 32

Salespeople can overcome their reluctance to call prospects by engaging in sales training and role-playing activities to improve their prospecting skills.

Question 33

Everlast Tire Company has hired a consulting agency,Waddell and Hartley,to acquire the equipment needed to automate its second factory.Waddell and Hartley will be responsible for purchasing all the goods and services necessary for the plant,making sure that they are compatible,and turning them over to Everlast,for a facility that is the center of operations for the company.Waddell and Hartley would be called a(n)_____.

A) systems integrator
B) decentralized agency
C) functional supplier
D) industrial facilitator
E) industrial distributor

Question 34

The process of prospecting usually begins with locating a _____.

A) change agent
B) bird dog
C) lead
D) gatekeeper
E) cross-seller

Question 35

The relative value of each lead that is qualified is analyzed by a lead management system.

Question 36

Salespeople should refrain from showing their expertise about a topic by writing blogs because blogs are an unacceptable way to reach professionals.

Question 37

Mason is the head of an automobile firm.The firm has two manufacturing units,one located in a city and the other located in a town.The manufacturing unit located in the town requires maintenance,repair,and operations (MRO)supplies to enable a smooth running of the manufacturing process.Mason delegates this task to an external consultant who buys necessary goods and services on behalf of the firm.In this case,the external consultant acts as a:

A) change agent.
B) lessor.
C) referral lead.
D) systems integrator.
E) spotter.

Question 38

Lead prequalification helps salespeople use their time wisely.

Question 39

Robina received a memo with the name of a person who wrote to her company inquiring about the firm's radiology equipment.The person who made the inquiry is best classified as a:

A) qualified prospect.
B) client.
C) lead.
D) prospect.
E) customer.

Question 40

A webinar is a form of cold calling.

Question 41

Judy is a local sales representative for an insurance company.The economy is stagnant and few new residents are moving into her territory.Consequently,Judy decides to assess the potential for additional sales among her existing customers.Judy is planning to use a(n)_____ strategy.

A) endless-chain
B) data mining
C) selling deeper
D) cold calling
E) seeding

Question 42

When a large chain of stores such as Home Depot or Kmart buys items centrally from its home office,selling companies often designate it as a _____ account,which means that its needs are handled by their corporate offices and local salespeople need not attempt to solicit business from any of its branches that come within their territory.

A) house
B) bounce-back
C) functional
D) limited
E) generational

Question 43

Ruth used her personal connections with a manager at Hampton Industries,a manufacturer of decorative paper items,to become the first salesperson in her firm to call on a company that was using recycled paper to make posters.Ruth used her _____ abilities to make this sales call possible.

A) seeding
B) zoning
C) canvassing
D) networking
E) telemarketing

Question 44

As Sandra concluded her sales interview with Burt,she said,"I'm pleased you see the value of this new software for managing your inventory.Can you suggest some other small business owners who might like to see it?" Sandra is using the _____ method of prospecting.

A) selling center
B) endless-chain
C) lists and directories
D) spotter
E) canvassing

Question 45

When Grant visited his supplier's Web site,he entered a code provided to him and went to a customized site that listed his recent purchases,sale items,and complementary products he might need.Grant was most likely visiting a(n)_____.

A) spam filter
B) extranet
C) blog
D) sponsor
E) intranet site

Question 46

Wallace represents a manufacturer of hearing aids.Lisa,an audiologist to whom Wallace sold one of his company's new Max-Ear 2001,is so pleased with its performance that she has written a testimonial and listed some other audiologists whom Wallace may approach for a purchase.This is an example of the _____ method used in prospecting.

A) endless-chain
B) spotter
C) insight selling
D) cold call
E) data mining

Question 47

Roger is a sales representative for a farm equipment supplier.Almost twice a month,he visits Frank Copeland's farm.Copeland has not bought a new piece of equipment from Roger's firm in the last 20 years,but he always seems to know who is looking to buy Roger's goods.Copeland likes to gossip and shares his information with Roger freely.Frank Copeland is a good example of a:

A) deep seller.
B) driver.
C) center of influence.
D) free canvasser.
E) spotter.

Question 48

When a salesperson can only sell to prospects located within a certain geographical location,the salesperson is said to be managing sales for a(n)_____.

A) deep seller
B) exclusive sales territory
C) star client
D) national account
E) system integrator

Question 49

Veronica buys a laptop from a local salesperson,but it turns out to be defective.She tells her friends and relatives about the poor performance of the laptop.From the perspective of the salesperson,this is an example of:

A) a lead disqualification.
B) a sneak attack.
C) browbeating.
D) a negative referral.
E) routing.

Question 50

Which of the following is a way that companies use the Internet to generate leads?

A) By developing an extranet
B) By using bulletin boards
C) By using newsgroups
D) By using e-mail messages
E) All of these

Question 51

In the case of insight selling,salespeople target those prospects who:

A) constitute their current and satisfied group of clients.
B) purchase stock centrally from the home office of their company.
C) demonstrate a sluggish approach toward making purchase decisions.
D) do not have a clear understanding of what they need and are in a state of flux.
E) require consultants or system integrators to begin their operations.

Question 52

When a customer account is specifically assigned to a sales executive rather than to a salesperson who handles the territory containing that customer account,that customer account is usually known as a _____.

A) house account
B) lost-for-good account
C) turnover account
D) contra account
E) lead account

Question 53

To qualify as a prospect,it is imperative that a lead have all of the following characteristics EXCEPT:

A) charisma.
B) authority to buy.
C) ability to pay.
D) eligibility to buy.
E) a need.

Question 54

Mark and Vincent are efficient salespeople working for Nikelin Inc.They are field salespeople who always generate the highest sales revenue for their teams.Mark is assigned to conduct sales specifically to prospects in New York,while Vincent is assigned to conduct sales specifically to prospects in Los Angeles.Jason,another salesperson at Nikelin Inc. ,handles only large customers in both New York and Los Angeles.Which of the following statements is most likely true about this scenario?

A) Mark and Vincent use the circular routing method to conduct sales.
B) Mark and Vincent specialize in handling house accounts.
C) Jason specializes in handling lost-for-good accounts.
D) Nikelin Inc.employs Jason as a spotter for its firm.
E) Nikelin Inc.uses exclusive sales territory to assign work to Mark and Vincent.

Question 55

Tom has been invited to spend the weekend at Hilton Head by his stockbroker,Nathan.He asks Tom to bring along a few of his professional friends as well.The stockbroker is organizing a:

A) trade fair.
B) referral event.
C) list and directory seminar.
D) spotter show.
E) canvassing event.

Question 56

Which of the following statements about the use of the Internet as an effective lead generator is true?

A) An advantage of Web-based promotions is their ability to attract numerous international leads.
B) A disadvantage associated with using the Internet to generate leads is the high cost.
C) The Internet cannot transmit business information in different languages.
D) Extranets are created for general marketing efforts with no defined target markets.
E) Companies cannot use the Internet to build relationships with current customers.

Question 57

Wallace is a salesperson in the Nebraska Territory for a firm selling kitchen appliances to mobile home manufacturers.At a school reunion,an old friend approaches him and says,"What a coincidence! I'm the director of purchasing for Bilt-Tite Mobile Homes in Franklin,Georgia.Why don't you contact me next week? Let's see if we can do business." Unfortunately,Wallace cannot do business with his friend because:

A) he does not need Wallace's products in his business.
B) companies discourage the use of personal contacts to generate leads.
C) his business is not located within Wallace's authorized territory.
D) Wallace will not be able to approach him favorably.
E) he does not have the authority to buy Wallace's appliances.

Question 58

Jonathan,a salesperson,sells laptops and desktop computers.Kevin regularly purchases these goods from Jonathan.Jonathan understands Kevin's buying behavior and makes additional sales to Kevin.Even though Kevin does not actually require these additional goods,he ends up buying them because he has always been satisfied with Jonathan's products.This is an example of:

A) backdoor selling.
B) selling deeper.
C) circular routing.
D) cloverleaf routing.
E) upselling.

Question 59

A salesperson sells a mobile phone to Karen.Karen tells the salesperson that her friend Jenna is also interested in buying a similar mobile phone.The name of Jenna provided by Karen would be treated by the salesperson as a:

A) bird dog.
B) promoted lead.
C) qualified prospect.
D) referred lead.
E) listed evangelist.

Question 60

Kenneth regularly buys from a preferred seller.He always gives positive feedback to the reseller and also convinces his relatives and friends to buy goods from the seller.According to the seller,Kenneth is most likely a(n):

A) bird dog.
B) jobber.
C) evangelist.
D) spotter.
E) poacher.

Question 61

In which of the following methods of prospecting is a salesperson likely to know the least about the prospects called on before meeting them?

A) Networking
B) Endless-chain method
C) Center-of-influence method
D) Cold calling
E) Seeding

Question 62

The primary purpose of webinars is to:

A) generate leads and provide information to prospective customers.
B) promote new products to all potential customers.
C) enhance cold-calling initiatives among a sales force.
D) expand databases for effective data mining.
E) reduce search engine costs and sell deeper.

Question 63

Which of the following statements about cold calling as a method of prospecting is true?

A) It is a relatively new technique.
B) It requires a large amount of information about a prospect before making the initial contact.
C) Most purchasing agents prefer cold calling as a method of prospecting.
D) It can waste a lot of a salesperson's time.
E) All of these

Question 64

Horizon Gifts is involved in corporate gifting solutions for large companies.Cal is a long-time user of the service provided by Horizon Gifts,and he often suggests possible clients to the service's sales representatives.Every time the lead Cal has provided actually results in a purchase,Cal receives a free gift,which might be anything from a can of assorted nuts to a wool muffler.Cal acts as a _____ for Horizon Gifts.

A) driver
B) spotter
C) gatekeeper
D) negotiator
E) mediator

Question 65

Which of the following statements about lead qualification and management is true?

A) Firms often engage in prequalification of leads for their field sales forces.
B) A lead management system can be used to grade leads and establish a priority call list.
C) The judicious use of technology makes lead qualification and management more efficient and effective.
D) A lead qualification system can be used to offer a salesperson insight into a lead's value.
E) All of these

Question 66

Which of the following statements about the use of a postscript (PS)at the end of a sales letter is true?

A) Postscripts right after the greeting are most effective.
B) Postscripts should be used to ask about a prospect's family or some other element of his or her personal life.
C) Postscripts should be used to emphasize an important selling point.
D) Postscripts should not be used to highlight the requested action because the customer may resent feeling pressurized by the sales team.
E) Postscripts should ideally provide details of the sales representative to be contacted for queries.

Question 67

After a sales letter gains a prospect's attention,the next thing it must do is:

A) explain why the reader should or should not take the desired action.
B) create curiosity about the product being sold.
C) ask the reader to take a specific action.
D) point out a deadline for action.
E) tell the reader when to expect a follow-up visit or a phone call from the sales representative.

Question 68

The opening paragraph of a sales letter should:

A) explain why the reader should buy a product.
B) grab the reader's attention.
C) ask the reader to take a specific action.
D) point out a deadline for action.
E) all of these.

Question 69

Robert works in a marketing firm.He verifies the phone numbers and residential addresses of all the leads generated by the firm before turning them over to the field salespeople in his firm.Which of the following statements is true about the scenario?

A) Robert is zoning the leads.
B) Robert is engaging in a blitz.
C) Robert is engaging in cold calling.
D) Robert is engaging in benefit opening with the leads.
E) Robert is involved in prequalification of the leads.

Question 70

A _____ is an individual who,for a fee,will provide the names of leads for a salesperson.

A) cold caller
B) bird dog
C) hawker
D) jobber
E) prospect

Question 71

Identify an accurate statement about merchandise markets.

A) They involve the direct sale of goods to public.
B) They are places where defective goods received from customers are returned to the manufacturers.
C) They are places where only old and unsold stock is sold at low prices.
D) They involve the sale of goods to retailers.
E) They are places that typically exclude a supplier's sale office.

Question 72

Vindurem Inc.has developed a software that would reduce the time taken by manufacturers to identify suppliers of raw materials and distributors of finished goods for a particular region.The company assigns its sales team to call on all potential customers that exist within a two-mile radius of the city's shipping port to market this new software.The company conducts this cold calling for a period of two days.This type of cold canvassing is called _____.

A) browbeating
B) lowballing
C) a blitz
D) leapfrog routing
E) a boomerang

Question 73

A lead management system is used to:

A) generate leads for a blitz.
B) generate leads from existing customers only.
C) analyze the relative value of each lead.
D) create an endless chain for referrals.
E) exclusively target customers for telemarketing campaigns.

Question 74

Janice is a salesperson at a local computer store.She offers buyers a discount of $100 if they provide her with the contact details of people who want to buy computers or computer-related accessories.In this case,Janice wants these people to act as her:

A) leads.
B) spotters.
C) prospects.
D) gatekeepers.
E) evangelists.

Question 75

Harold needs to sell a new drug to physicians and doctors in a locality.Without even checking with the doctors and physicians,he visits the clinics and hospitals in the locality,assuming that someone would be interested in buying the new drug.This is an example of:

A) cold calling.
B) deep selling.
C) lowballing.
D) ambush marketing.
E) routing.

Question 76

Which of the following is an example of a secondary source of sales leads?

A) Industrial trade directories
B) Cold calls
C) Centers of influence
D) Buying communities
E) All of these

Question 77

Often the primary function of salespeople at trade shows is to:

A) engage in cold calling.
B) study customers' responses to product features and benefits.
C) make customized and individualized presentations for all interested buyers.
D) make use of the Internet to popularize their products.
E) discover and qualify leads for future follow-up.

Question 78

Which of the following statements is true about bird dogs?

A) They are individuals who usually delegate the purchase decisions of a firm to an external consultant for a fixed fee.
B) They are individuals who work for a salesperson and are usually able to find out if someone is ready to make a purchase decision.
C) They are individuals who buy goods directly from a seller and resell the goods to a reseller at a high price.
D) They are individuals who make purchase decisions on behalf of a consumer for a fee.
E) They are individuals who usually draft the sales pitch for the salespeople in a firm.

Question 79

The purpose of a blitz is to:

A) build partnerships between a selling firm and a buying firm.
B) increase a company's sales budget.
C) generate leads for a local salesperson through cold calling.
D) blanket a particular geographic area with sales letters.
E) improve a salesperson's ability to make custom sales presentations.

Question 80

In the final paragraph of a sales letter,the writer should:

A) wait until the last sentence to demand money.
B) seek commitment to the desired course of action.
C) use expressions like "Why not buy now?" to give the reader the feeling of having a choice.
D) remind the reader that the offer being made in the sales letter will never be canceled.
E) assume that the reader is intelligent enough to know what needs to be done and avoid repeating information provided in the body of the letter.