Deck 7: Prospecting

Question 1

A blitz is a form of cold-canvass prospecting.

Answer 1

True

Question 2

Firms are increasingly relying on telemarketing to perform many functions salespeople used to perform.

Answer 2

True

Question 3

While high-pressure sales tactics are usually not appropriate because the salesperson is attempting to sell a product the buyer doesn't need, they are acceptable when selling products used by all organizations, such as fire insurance or office supplies since clearly any organization is a qualified prospect.

Answer 3

False

Question 4

Some salespeople make the mistake of considering anyone a prospect without first finding out whether he or she really provides the opportunity to make a sale.

Question 5

Data mining by salespeople means digging deep into their client lists to determine who are the most valuable customers.

Question 6

It is difficult to combine sales letters with telemarketing.

Question 7

Databases can be used by salespeople to tailor sales presentations.

Question 8

When Rebecca, a travel agent, evaluates Rick's ability to pay (as part of determining if he is a qualified prospect); she should not only be concerned about how much money he actually has at this time, but also his creditworthiness.

Question 9

The difference between an exclusive sales territory and a house account is an exclusive sales territory is managed by corporate executives while a house account includes only certain prospects in an area.

Question 10

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

Question 11

If Carla keeps her eyes and ears open as she goes through her day as a salesperson, she is quite likely to discover lead-producing information.

Question 12

The strategy that existing customers are usually prospects for additional sales is called the endless-chain method.

Question 13

A seventeen-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.

Question 14

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

Question 15

Like the salesperson's approach, the opening paragraph of a sales letter must grab the prospect's attention.

Question 16

NAICS replaced SIC.

Question 17

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

Question 18

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

Question 19

One part of Kalesha's job as a field representative for a plumbing supplies manufacturer is to locate businesses that might buy her firm's products. This activity is called:

A) prospecting
B) leading
C) scoping
D) precalling
E) probing

Question 20

A bounce-back is a person who, for a fee, will provide leads to a salesperson.

Question 21

You are the Nebraska territory salesperson for a firm selling kitchen appliances to mobile home manufacturers. At your tenth high school reunion an old friend whom you haven't seen since college 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 and let's see if we can do business?" Unfortunately, your old high school friend isn't a prospect for you because:

A) she does not need what you are selling
B) companies frown on salespeople selling to friends
C) she is not in your authorized territory
D) you will not be able to approach her favorably
E) she does not have the authority to buy appliances

Question 22

When a large chain of stores such as Home Depot or Kmart buys items centrally from its home office, selling companies often designate these customers as _____ accounts, which means their needs are handled out of the seller's corporate offices, and local salespeople need not attempt to solicit business from any branches in their territories.

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

Question 23

To qualify as a prospect, a lead must have:

A) needs
B) authority to buy
C) ability to pay
D) eligibility to buy
E) all of the above

Question 24

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

A) pharmaceutical sales rep selling heart medications
B) real estate salesperson specializing in residential property
C) snack food route salesperson
D) electric transformer salesperson who is assigned to work full-time serving Florida Power and Light
E) Post cereal salesperson whose territory is metro-Denver

Question 25

As Sharon concluded her sales interview with Burt he said, "I was so happy with your products, I spoke with other manufacturers in the area and they would like you to contact them." For Sharon, Burt is a:

A) center-of-influence
B) ball and chain publicist
C) promoter
D) spotter
E) canvasser

Question 26

Judy is the local sales representative for an insurance company. The economy is stagnant and few new residents are moving into her territory. She decides to assess the potential for additional sales to her existing customers. Judy is considering a ___________ strategy.

A) endless-chain
B) spotters and diggers
C) selling deeper
D) in depth development
E) centrally influenced

Question 27

The text suggests five questions that will help a salesperson determine if a particular lead is a qualified prospect. Which of the following is NOT one of those questions?

A) "Does the lead have the ability to pay?"
B) "Is the lead eligible to buy?"
C) "Does the lead have the authority to buy?"
D) "Does the lead agree to buy the product?"
E) "Can the lead be approached favorably?"

Question 28

"Can the lead be approached favorably?" refers to whether:

A) the salesperson is able to make a good first impression on most prospects he or she approaches
B) the prospect is the person who actually makes the buying decisions
C) the salesperson has anything to offer the prospect
D) the salesperson is able to make a good first impression on this particular prospect
E) the prospect is accessible to the salesperson

Question 29

The process of determining if a lead is indeed a prospect is:

A) automatic when using artificial intelligence software
B) almost impossible
C) precalling a customer
D) qualifying a lead
E) described by none of the above

Question 30

Which of the following statements about prospecting is FALSE?

A) Current and previously satisfied customers are the most effective source for leads.
B) Regardless of what a salesperson's product is, prospecting techniques are basically the same.
C) Current customers can refer a salesperson to prospects in competitive firms within the same industry.
D) Current customers may be prospects for other products the salesperson sells.
E) Leads in the same industry in which the salesperson has already made sales are especially useful.

Question 31

The process of locating potential customers for a good or service is called:

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

Question 32

Robina has just been given the name of a person who wrote her company inquiring about the firm's radiology equipment. At this point, this person is best classified as a:

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

Question 33

NevaFlat Tire Company has hired Waddell and Hartley to acquire the equipment needed to automate NevaFlat's Rockmart Tire Production Factory. Waddell and Hartley will be responsible for purchasing all the goods and services necessary for the plant, making sure they are compatible, and turning over to NevaFlat a facility that is ready to operate. 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

Which of the following statements about prospecting is true?

A) Cold calling requires a lot of preparation.
B) Not all leads will be prospects.
C) It is unethical to use friends or relatives as a source for leads.
D) Personal observation is not a way to find qualified leads.
E) To be effective, a center of influence must also be one of your best customers.

Question 35

You sell machine tools. You have just called on "Duck" Williams the production manager at the Copper Hill Tool and Die Manufacturing Company. You know you've called on the wrong person when Duck says:

A) "Our Dalcon 4000 machine is on its last legs."
B) "Our sales for this year are expected to increase by 25 percent."
C) "Maria Mintz, the director of the purchasing department, makes all the decisions about major equipment purchases."
D) "My department's equipment budget is larger than last year's."
E) Any of the above

Question 36

A large cosmetics company wants to create a Web site to sell its cosmetics. They want their people trained to maintain the Web site and work with search engines. They also want an extranet created as well as internal networking facilities for conferencing established. Basically, the organization has been a laggard and wants to leap into the technological world. Because the tasks the company wants will require several different experts, it has outsourced the purchase of these services to Maxwell Consultants who will find and hire the people the cosmetics company needs. Maxwell will stay on the job until the company is satisfied. Maxwell Company will act as a(n):

A) in-house talent agency
B) network seller
C) decentralized purchasing corporation
D) systems integrator
E) functional supplier

Question 37

Why must salespeople continuously prospect?

A) Clients may switch to competing suppliers.
B) Buyers may be transferred to other jobs within their firms.
C) Client firms may be taken over by other firms.
D) Some current customers may go bankrupt.
E) All of the above are good reasons for prospecting.

Question 38

A typical salesperson will experience a _____ percent loss of his current customers in a single year.

A) less than 5
B) 5 to 10
C) 10 to 15
D) 15 to 20
E) 20 to 25

Question 39

As Sondra 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?" Sondra is using the _____ method of prospecting.

A) center-of-influence
B) endless-chain
C) lists and directories
D) spotters
E) canvassing

Question 40

A casket salesperson who is only allowed to sell to funeral directors in a three-state area, even though retail florists in the area can and do sell caskets is working in a(n):

A) selectively distributed sales area
B) exclusive sales territory
C) tying arrangement
D) non-reciprocal selling arrangement
E) major-accounts-only sales territory

Question 41

A postcard pack is:

A) a group of companies that sell only by mail
B) a group of salespeople who attempt to sell to all prospects in a given area in a short time period (usually about a week)
C) a method of packaging items together in a very small shipping container, thereby allowing a cost saving in shipping costs
D) a series of several mailings that a salesperson can send to a prospect over a period of weeks to persuade the prospect to make an appointment to see the salesperson
E) a package of postcards from a number of different firms sent as a group that allow recipients to fill in their names and addresses to request more information about the products advertised

Question 42

A center of influence is:

A) another name for a prospect's "hot button"
B) the geographic starting point of a cold canvass prospecting effort
C) a well-known and influential individual who is willing to supply lead information to the salesperson
D) the person in an industrial company who has final approval on the salesperson's product
E) another name for the selling firm's telemarketing center

Question 43

A salesperson at a trade show that is practicing adaptive selling might ask:

A) "Are you enjoying the show?"
B) "How's the weather outside?"
C) "Can I help you with something today?"
D) "Would you like to have this free calendar?"
E) "Do you ever wish there was a way to increase its profits by 10 percent without increasing expenses?"

Question 44

Sales people sometimes find small, informal groups of people in similar positions with different companies, who meet and communicate regularly. For a sales person, these groups represent a potential:

A) buying community
B) budgeting panel
C) borrowing bureau
D) bounce-back barricade
E) better business bureau

Question 45

One of the limitations associated with the use of the Internet as an effective means to generate leads is:

A) the frustration caused by Spam
B) the inability to create interesting messages
C) the popularity of telemarketing
D) the cost associated with sending the individual messages
E) all of the above

Question 46

Laura knows the sales presentation she just made did not go well. The prospect is a leader in the local Chamber of Commerce and she is concerned her poor presentation might lead to:

A) lead qualifications
B) bird dogging
C) spam
D) negative referrals
E) influential centrality

Question 47

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

A) Encyclopedia of Associations
B) cold call
C) center-of-influence
D) buying community
E) all of the above

Question 48

Adam told Bonnie that Jacqueline might be interested in the home security system she was selling. To Bonnie, Jacqueline becomes a(n):

A) introductory prospect
B) suspect
C) qualified prospect
D) referred lead
E) listed lead

Question 49

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

A) spam filter
B) extranet
C) blog
D) sponsor
E) cyberhustler

Question 50

Roger sells farm equipment. About twice a month he visits Frank Copeland's farm. Copeland hasn't bought a new piece of equipment in twenty years, but he always seems to know who's in the market for Roger's farm equipment. Copeland likes to gossip and shares his information with Roger freely. Frank Copeland would be a good example of a:

A) bounce-back
B) spiff
C) center of influence
D) free canvasser
E) spotter

Question 51

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

A) by developing an extranet
B) by using carefully placed banner advertising to link their Web sites with other similar sites
C) by being listed on search engines
D) by using e-mail messages
E) by doing all of the above

Question 52

Brenda is considering purchasing a list of potential customers from a list dealer. Which of the following is NOT a concern that Brenda should evaluate regarding the list she is considering?

A) The list could be out of date.
B) The list probably contains inaccurate information.
C) The list may contain new names she has not heard of before.
D) The list may contain people who are overwhelmed with sales solicitations.
E) There may be other lists that are better suited for her needs.

Question 53

You represent a manufacturer of hearing aids. Lacresia, an audiologist to whom you have sold your company's new Max-Ear 2001, is so pleased with its performance in helping patients that she could not previously fit with hearing aids that she is writing you a letter of introduction to take to an old classmate of hers who has his own audiology clinic in nearby Cedartown. This is an example of the _____ method of prospecting

A) endless-chain
B) spotter
C) central advice
D) buying community
E) bounce-back

Question 54

Steve Raven filled out an inquiry card at the mall saying he was interested in building a sunroom on to his house. Recently, he received a mailing as a follow-up. In the mailing was another inquiry card, which he filled out and mailed in. The second inquiry card is called a(n) _____ card.

A) generating
B) eligibility
C) bounce-back
D) full-deal
E) sure-thing

Question 55

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

A) One advantage of Web-based promotions is the ability to attract numerous international leads.
B) One disadvantage associated with Internet lead generation is the high costs.
C) The Internet is not nearly as effective a way of generating leads as it was predicted to be.
D) Search engines are a particularly inefficient way to generate leads on the Internet.
E) Because of problems with security, few companies use the Internet as a source of leads.

Question 56

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

A) customized sales
B) personalized sales
C) canvassing
D) networking
E) telemarketing

Question 57

How do trade shows differ from merchandise markets?

A) Trade shows, unlike markets do not have permanent show space.
B) Markets, unlike trade shows do not appeal to retailers.
C) Markets, unlike trade shows do not have permanent show space.
D) Firms that use resellers only avail themselves of the opportunity to sell at markets, rather than trade shows.
E) Trade shows, unlike markets, do not appeal to high-tech companies.

Question 58

Tom is invited to spend the weekend at Hilton Head, courtesy of his stock broker. His broker asks Tom to bring along a few of his professional friends. The stock broker is organizing a:

A) center-of-influence
B) referral event
C) list and directory seminar
D) spotter show
E) canvassing event

Question 59

The NAICS system is:

A) a source of primary data
B) a source of seminar schedules creating potential leads
C) a trade show industry index
D) an industry classification system
E) none of the above

Question 60

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

A) cold call
B) study customers' responses to product features and benefits
C) make sales repetition
D) close the sale
E) qualify leads for future follow-up

Question 61

Rashid has been driven to an affluent neighborhood in Toledo. He is given a vacuum cleaner and all of the items he will need to make a sales presentation. He is instructed to start knocking on doors to see if he can find someone who is interested in buying a vacuum. Rashid is engaged in:

A) cold calling
B) the endless-chain method of prospecting
C) personalized telemarketing
D) bounce-back prospecting
E) lead qualification

Question 62

Which of the following is NOT a limitation commonly experienced with telephone prospecting?

A) Customers may find telephone calls annoying.
B) Unexpected prospecting calls may interrupt important work in which the prospect is engaged.
C) Telephones limit communications to verbal messages.
D) It is easier for the person contacted to end the conversation.
E) It is more expensive per person reached than cold canvassing.

Question 63

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

A) explain why the reader should 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 the follow-up visit or phone call from the sales rep

Question 64

Legal Eagle Software has developed a program that will save attorneys a lot of time in their research for precedents in product injury liability cases. The marketing director believes the software is so significant, that some attorneys will change their specialties when they discover its availability. Therefore, all six of the salespeople in this region have been brought to Franklin County, where this Thursday and Friday they will attempt to call on every lawyer within a one mile radius of the county court house. This type of cold canvassing is called:

A) an offensive incursion
B) fire-walling
C) a blitz
D) a saturation campaign
E) four-walling

Question 65

Which of the following statements about telephone prospecting is true?

A) Telemarketing is not limited to consumer sales.
B) During telephone encounters, prospects are usually more polite than during face-to-face meetings.
C) Inbound telemarketing is never used to generate and qualify leads.
D) True prospects never find telephone sales calls intrusive.
E) Prospecting by telephone is limited to consumer sales.

Question 66

The first paragraph of a sales letter should:

A) explain why the reader should take the desired action
B) grab the reader's attention
C) ask the reader to take a specific action
D) point out a deadline for action
E) do all of the above

Question 67

Data mining by salespeople means:

A) digging deep into their client lists and determining who are the most valuable customers
B) assessing the cost of lists of prospects
C) using statistical methods to learn more from existing data
D) collecting primary data to be assessed by corporate computer systems
E) digging for gold in the company's data mines

Question 68

In the action close for a sales letter, the writer should:

A) wait until the last sentence to demand money
B) tell the reader what to do by using such phrases as "Act now"
C) use expressions like "Why not buy now?" to give the reader the feeling of having a choice
D) remind the reader the offer being made in the sales letter will never be canceled
E) assume the reader is intelligent enough to know what needs to be done and avoid repeating information provided in the body of the letter

Question 69

Which of the following statements about telemarketing is true?

A) Telemarketing is often used with spotters.
B) Personnel who work in an inbound telemarketing center spend most of their time calling people who might be leads and trying to qualify them as prospects.
C) Telemarketing is actually a form of the endless-chain method of prospecting.
D) Firms are increasingly relying on telemarketing to perform many functions that salespeople used to perform.
E) Outbound telemarketing involves a telephone number interested prospects can call to obtain additional information.

Question 70

When a buyer at Monrovia Nursery Company sees an ad for a new type of Christmas tree stand in a trade magazine and responds by calling a toll-free number in the ad, _____ is taking place

A) inbound telemarketing
B) bounce-back telemarketing
C) outbound telemarketing
D) seminar marketing
E) convention marketing

Question 71

When a respiratory therapist saw an article about Zyran, an over-the-counter smoking cessation drug that does not contain nicotine, he called the toll-free number provided by the manufacturer to learn more about the drug and to ask that a salesperson call on him. This is an example of:

A) inbound telemarketing
B) bounce-back telemarketing
C) outbound telemarketing
D) seminar marketing
E) convention marketing

Question 72

In _____, telephones are used to generate leads and then qualify leads.

A) inbound telemarketing
B) bounce-back telemarketing
C) outbound telemarketing
D) seminar marketing
E) convention marketing

Question 73

Pete is a salesperson at the local Honda dealership. He frequently offers buyers $50 if they refer someone else to him who buys a new car. Pete is attempting to get these people to act as his:

A) reconnaissance staff
B) spotters
C) bounce-backs
D) spiffs
E) steppers

Question 74

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 the 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 if the letter contains an action close.
E) Postscripts are ineffective.

Question 75

Horizon Gifts provides promotional gift baskets for business-to-business marketers to give during the holidays. Cal is a long-time user of the service provided by Horizon Gifts, and he often suggests possible clients to the service's sales rep. Every time the lead Cal has provided actually makes a purchase, Cal receives a free gift, which might be anything from a can of macadamia nuts to a wool muffler. Cal acts as a _____ for Horizon Gifts.

A) reconnaissance man
B) spotter
C) bounce-back
D) spiff
E) shill

Question 76

With ______________ prospect source, the salesperson is likely to know the LEAST about the person called on before they meet.

A) salespeople of related noncompeting products
B) endless-chain
C) center-of-influence
D) cold calling
E) inquiries

Question 77

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

A) It is a relatively new technique.
B) It requires a large amount of information about the prospect in advance of the initial contact.
C) Most purchasing agents welcome this method of prospecting.
D) It can waste a lot of the salesperson's time.
E) All of the above statements about the cold calling method are true.

Question 78

The purpose of a blitz is to:

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

Question 79

In the action close for a sales letter, the writer should:

A) offer more information ("If you'd like to receive . . .")
B) suggest a reason to delay action
C) make the action sound easy
D) use the last sentence to make one final direct request that the recipient send in the money requested now
E) use jargon familiar to the letter receiver

Question 80

Quentin has a good paying part-time job while he is going to college. He and about ten other students work three hours per day at the firm's calling center calling people on various lists their employer provides to determine if those individuals are interested in buying vinyl siding for their homes and whether they qualify for a visit by one of the firm's field representatives. Quentin is engaged in:

A) inbound telemarketing
B) bounce-back telemarketing
C) outbound telemarketing
D) seminar marketing
E) convention marketing