Deck 6: Prospecting

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

Firms have developed sophisticated systems to generate inquiries from leads by using advertising and direct mail.

Question 6

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

Question 7

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

Question 8

In seminars,salespeople should take the opportunity to especially invite prospects who are not willing to meet them face-to-face.

Question 9

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

Question 10

Salespeople often use online tools like LinkedIn,Facebook,and Twitter to prospect for new customers and maintain contact with existing customers.

Question 11

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

Question 12

When Rebecca,a travel agent,evaluates Rick's ability to pay she should not only be concerned about how much money he actually has,but also about his creditworthiness.

Question 13

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 14

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 alcohol.

Question 15

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

Question 16

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

Question 17

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

Question 18

Salespeople use seminars and online webinars to finalize deals.

Question 19

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

Question 20

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

Question 21

Brandon,a salesperson selling machine tools,has called on Mr.Williams,the production manager at the Copper Hill Tool Manufacturing Company.Which of the following responses from Mr.Williams indicates that Brandon must use a different approach to initiate a sales call?

A) "Our Dalcon 4000 machine is on its last legs."
B) "Our sales for this year are expected to increase by 25 percent and my production team is largely responsible for this growth."
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 22

The standard industrial classification code is useful for salespeople researching using secondary sources.

Question 23

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 24

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

Question 25

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

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

Question 26

While writing a sales letter,a salesperson should utilize technical terms and jargon to sound professional.

Question 27

Data mining involves the use of artificial intelligence and statistical tools to discover insights hidden in a database.

Question 28

Lead prequalification helps salespeople use their time wisely.

Question 29

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,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 30

Diva,a large cosmetics company,wants to create a Web site to sell its cosmetics online.The company wants its employees to be trained to maintain the Web site.The CEO also wants an extranet to be created and internal networking facilities to be established for videoconferencing and similar functions.Since the process requires inputs from several different experts,Diva has outsourced the purchase of these services to Maxwell Consultants who will find and hire the people to build Diva's Web site and train its employees as well.Maxwell Consultants will act as a _____ for Diva.

A) gatekeeper
B) network seller
C) strategic analyst
D) systems integrator
E) functional supplier

Question 31

A webinar is a form of cold calling.

Question 32

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

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

Question 33

Firms combine outbound and inbound telemarketing to prospect effectively.

Question 34

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) seeding

Question 35

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) Dynamo, a maker 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 Denver

Question 36

Spotters are individuals who provide leads to a salesperson for a fee.

Question 37

It is important to qualify the lead quickly in a cold call.

Question 38

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 39

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

Question 40

The question,"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 merely a lead or is a qualified lead.
C) the salesperson has anything to offer the prospect.
D) the prospect has the authority to take the deal forward.
E) the prospect is accessible to the salesperson.

Question 41

Which of the following is a feature of merchandise markets?

A) They are also known as trade shows or trade fairs.
B) They essentially involve retailers selling to the public.
C) They sell a very limited range of goods only at fixed times during a year.
D) The sellers are usually manufacturers or distributors.
E) They do not encourage bulk buying by resellers because they don't offer discounts.

Question 42

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

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

Question 43

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

A) By developing an extranet
B) By placing ads on commonly used pages
C) By using social media tactics like live chat on networks
D) By using e-mail messages
E) All of the above

Question 44

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 who Wallace may approach.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 45

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 that their needs are handled by their corporate offices,and local salespeople need not attempt to solicit business from any branches of these clients that come within their territory.

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

Question 46

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 the sales force.
D) expand databases for effective data mining.
E) reduce search engine costs and sell deeper.

Question 47

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 48

Laura,a sales representative,knows that the presentation she gave did not go well.She is anxious that the prospect,a leader in the local Chamber of Commerce,may mention her poor performance to other potential clients,thus leading to _____.

A) lead qualifications
B) seeding clients
C) cold calls
D) negative referrals
E) referred leads

Question 49

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 50

Adam told Bonnie that Jacqueline,his sister,might be interested in the sprinkler that she was planning to sell.For Bonnie,Jacqueline becomes a(n)_____.

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

Question 51

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 52

Wallace is the Nebraska territory salesperson 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 and 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 53

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) spotters
E) canvassing

Question 54

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

A) center-of-influence.
B) negotiator.
C) promoter.
D) spotter.
E) driver.

Question 55

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 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 would be a good example of a:

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

Question 56

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) needs.

Question 57

Ruth used her personal connections with the manager at Hampton Industries,a manufacturer of decorative paper items,to become the first salesperson 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) personalized sales
C) canvassing
D) networking
E) telemarketing

Question 58

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 59

Judy is a local sales representative for an insurance company.The economy is stagnant and very 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) deep selling
D) cold-calling
E) seeding

Question 60

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 most likely visiting a(n)_____.

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

Question 61

Pete is a salesperson at the local Honda dealership.He frequently offers buyers $50 if they provide him with the contact details of a customer who wants to buy a car.Pete is attempting to get these people to act as his:

A) salespeople.
B) spotters.
C) drivers.
D) gatekeepers.
E) steppers.

Question 62

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.This is an example of _____.

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

Question 63

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 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 64

In the final paragraph of a sales letter,a 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.

Question 65

After a sales letter gains a 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 representative.

Question 66

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 67

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 68

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) Telemarketers are used by some companies to prequalify leads.
E) All of the above.

Question 69

A lead management system is used to:

A) generate leads for a blitz.
B) generate leads from already 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 70

Rashid has been asked to target an affluent neighborhood in Toledo to sell his company's vacuum cleaners.With a sample,he goes from door to door to see if he can find someone who is interested in buying a vacuum cleaner or to watch a demonstration at least.Rashid is engaging in _____ in this scenario.

A) cold calling
B) data mining
C) personalized telemarketing
D) seeding
E) deep selling

Question 71

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 the 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 the above statements about cold calling are true.

Question 72

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 73

Quentin and ten other students work three hours per day calling people on various lists Harold,their employer,provides them.Their job is to determine if those individuals are interested in buying vinyl siding for their homes and whether they qualify for a visit by one of Harold's field representatives.Quentin is engaged in _____.

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

Question 74

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 rarely used to generate and qualify leads.
D) True prospects never find telephone sales calls intrusive.
E) Prospecting over telephone is considered to be a poor business practice in the sales industry.

Question 75

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 the above

Question 76

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 a highly expensive method of prospecting.

Question 77

The first 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 the above.

Question 78

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

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

Question 79

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 80

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 of the company believes that 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 for two days,where 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 _____.

A) referral event
B) distress sale
C) blitz
D) social media campaign
E) sales funnel