Deck 7: Prospecting the Lifeblood of Selling

Question 1

The sales process refers to a sequential series of actions by the salesperson that leads toward the customer taking a desired action and ends with a follow-up to ensure purchase satisfaction.

Answer 1

True
Explanation: The sales process refers to a sequential series of actions by the salesperson that leads toward the prospect or customer taking a desired action and ends with a follow-up to ensure purchase satisfaction. This selling process involves 10 basic steps.

Question 2

The success of cold canvass prospecting method relies solely on volume of calls made.

Answer 2

True
Explanation: The cold canvass prospecting method is based on the law of averages and relies solely on the volume of cold calls made. There is generally no knowledge about the individual or business the salesperson calls on.

Question 3

Telemarketing involves the use of trained personnel to conduct planned,measurable marketing activities directed at targeted groups of consumers.

Answer 3

True
Explanation: Telemarketing is a marketing communication system using telecommunication technology and trained personnel to conduct planned, measurable marketing activities directed at targeted groups of consumers.

Question 4

The Leaking Bucket Customer concept illustrates how all leads and prospects are considered and filtered out before they become qualified prospects.

Question 5

In the two years Keith has been selling,he has built up a list of inactive accounts.He should now orphan these accounts and try to develop new prospects.

Question 6

To be effective,the participants in a sales club should sell competing products.

Question 7

A guideline provided in the text states that a good sales process involves 40 percent follow-up,20 percent preparation,and 40 percent presentation.

Question 8

Trade shows are rarely worth the salesperson's time since there are only a few minutes to qualify leads and get the information necessary to conduct a sales call later.

Question 9

Preapproach is the first step in the selling process.

Question 10

An effective way to attract prospects without having to go out prospecting is to submit regular articles about your business to trade magazines,journals,and newspapers.

Question 11

The center of influence prospecting method involves finding influential people who are willing to help a salesperson identify prospects.

Question 12

The salesperson who uses the cold canvass method of prospecting usually knows something about the prospect.

Question 13

Telephone prospecting is more expensive than the use of canvassing sales force for contacting a large number of prospects.

Question 14

The two reasons a salesperson must consistently look for new prospects are to increase sales and to replace customers that will be lost over time.

Question 15

For success at trade shows,memorize your sales pitch so that you get your message across succinctly.

Question 16

"MAD" in prospecting is money,authority,and determination.

Question 17

The networking prospecting method is effective and reliable because people want to do business with people they know,like,and trust.

Question 18

A prospect is a qualified business that has the potential to buy a salesperson's product.

Question 19

By focusing on meeting center-of-influence people,a salesperson can cultivate a network and increase referral business.

Question 20

Success in selling requires minimal preparation before sales calls but a significant degree of work during calls.

Question 21

It is unwise and unethical to develop friends in the client's firm for the purpose of making a sale.

Question 22

After presentation,the next step in the selling process is:

A) to determine objections.
B) the referral cycle.
C) to follow-up.
D) the trial close.
E) to meet objections.

Question 23

The most successful salespeople never experience call reluctance.

Question 24

The practice of making an appointment before calling on a prospect shows respect toward the prospect.

Question 25

Obtaining referrals is a continuous process for salespeople.

Question 26

Which of the following statements about the selling process is true?

A) The selling process consists of ten basic steps.
B) Some steps in the selling process occur simultaneously.
C) Prospecting is the second step in the selling process.
D) Preapproach planning is the third step in the selling process.
E) Trial close is the last step of the selling process.

Question 27

Successful use of the telephone in appointment scheduling requires a chatty message that hints of a desire to establish a long-term relationship with the prospect.

Question 28

According to the Golden Rule of Selling,referrals are gained by:

A) encouraging customers to hear to what you are saying.
B) demonstrating how much you want to succeed.
C) demonstrating integrity with customers.
D) following the 80/20 principle of selling.
E) making sure every sale results in a purchase.

Question 29

The sales presentation provides salespeople with very little opportunity to influence a prospect.

Question 30

One of the guidelines for developing your own "best" prospecting method is to always call back on prospects who did not buy.

Question 31

The presentation phase of the referral cycle begins when you sit down with your prospects for a sales presentation.

Question 32

Which of the following occurs before the sales presentation?

A) Trial close
B) Determining objections
C) Preapproach
D) Follow-up
E) Meeting objections

Question 33

_____ is defined as the series of sequential actions by a salesperson that leads toward the customer taking a desired action and ends with a follow-up to ensure purchase satisfaction.

A) Sales presentation
B) Referral cycle
C) Sales process
D) Networking cycle
E) Prospecting process

Question 34

Ninety-nine percent of your first conversation with a networking prospect should be about your products and services.

Question 35

Prospect pools generally include referrals and orphaned customers.

Question 36

In a parallel referral sale,salespeople must sell the product as well as the after-sales service.

Question 37

The product delivery phase most likely represents the end of a relationship with a client if continued service is unnecessary.

Question 38

The primary goal of networking is to create as much exposure and free publicity for your product as possible.

Question 39

Respect,trust,time,and friendship are key elements in any salesperson's success.

Question 40

One excellent way for a salesperson to obtain an appointment with a prospect is to have a customer make the appointment for the salesperson.

Question 41

Langley sells truck bed liners guaranteed to last for 20 years.After every sale,Langley asks his customers for the names of several friends who might also be interested in protecting the beds of their trucks.He then calls on those people and also asks them for names.Langley is using the _____ method of prospecting.

A) customer-oriented
B) cold canvass
C) orphaned customer
D) endless chain referral
E) sales lead club

Question 42

The sales manager at OBC Office Supplies has determined that the office manager of Hoffman Realty has the money,desire,and authority to purchase a new copy machine.Hoffman Realty is best described as a:

A) potential referral.
B) qualified prospect.
C) network prospect.
D) qualified referral.
E) network agent.

Question 43

Kenton is a busy insurance salesperson,yet twice a month he writes a column for the local newspaper in which he addresses issues concerning financial security.The most logical reason for such activity is to:

A) motivate other insurance salespeople.
B) protect his financial investments.
C) support new stakeholders.
D) create prospects.
E) qualify prospects.

Question 44

Sonia Taylor has a collection of hand-tied fishing flies left to her by her great-grandfather.She has learned the fishing flies are valuable and would like to sell them.Sonia has used the Web to locate dealers of antique fishing gear who might be interested in purchasing the collection.Sonia has engaged in:

A) data mining.
B) e-prospecting.
C) direct marketing.
D) direct selling.
E) networking.

Question 45

Rico's sales manager has told him that if he wants to quit wasting time making presentations to people who are not qualified,he should think "MAD." What was the sales manager trying to tell Rico?

A) Rico should set up a "money accumulation determination" system for himself as a form of motivation.
B) Rico can improve his presentations and make them more memorable if he "makes a demonstration" on each sales call.
C) Rico can improve his success rate if he persuades customers that his products can "make a difference."
D) Rico should qualify his prospects by determining if they have the "money, authority, and desire" to buy.
E) Rico must "motivate" his customers to pay "attention," and use his sales presentations to create "demand."

Question 46

Kylie Lumberton was hired by a cosmetics company to replace a former employee.She did not know where to start looking for customers to start her sales.The ideal place for her to start would be:

A) sales lead clubs.
B) cold canvassing.
C) orphaned customers.
D) customer referrals.
E) e-prospecting.

Question 47

Ann's attempt to open a restaurant failed,and she is now trying to sell furniture and equipment she purchased.She suspects that Handlemann's Deli may be a potential buyer for the furniture.Ann should now engage in the _____ process to determine if it is worth her time to convince Handelmann to buy.

A) qualifying
B) funneling
C) networking
D) routing
E) leading

Question 48

The members of a sales lead club:

A) use the club primarily for socialization.
B) sell products of the same category.
C) sell competitive products.
D) belong to noncompetitive fields.
E) sell for the same corporation.

Question 49

Which of the following statements holds true of e-prospecting?

A) E-prospecting is less efficient than trade shows for finding prospects.
B) E-prospecting is heavily dependent on qualified referrals.
C) E-prospecting should only be used to sell nontechnical products.
D) E-prospecting requires no monetary investment by salespeople.
E) E-prospecting is a fast and easy way to find information.

Question 50

An insurance salesperson would most likely join a sales lead club to:

A) meet other insurance salespeople.
B) avoid making parallel referral sales.
C) share leads and prospecting tips.
D) practice new sales presentations.
E) evaluate sales procedures.

Question 51

Lydia sells an exclusive range of cosmetic products.She makes door-to-door sales calls.At each house after a sale she asks the homeowner if they know anyone who would be interested in her products.What prospecting method does Lydia use?

A) Center of influence
B) Cold canvas
C) Group
D) Endless chain
E) Observation

Question 52

Danny is out of work,but he is very good at fixing things around the house.He has spent much of his time during the last week going door-to-door asking people who live in the area if they have any odd jobs for him.In terms of the selling process,Danny is engaged in:

A) prospecting.
B) identifying.
C) referring.
D) networking.
E) direct marketing.

Question 53

A qualified person or organization that has the potential to buy your goods or services is a:

A) suspect.
B) volunteer.
C) lead.
D) partner.
E) prospect.

Question 54

A salesperson successfully using the endless referral chain method of prospecting most likely:

A) never leaves a sales call without at least two referrals.
B) asks customers to set up future appointments with referrals.
C) asks customers to become members of local sales lead clubs.
D) receives customer referrals primarily from orphaned customers.
E) spends time building relationships with customers to get future referrals.

Question 55

What is the basis for cold canvassing?

A) Law of averages
B) Endless chain referral
C) Center of influence
D) Prospect pooling
E) Parallel referrals

Question 56

One of the reasons why a salesperson must constantly look for new prospects is to:

A) fill-in otherwise unproductive parts of the day.
B) gain additional sales presentation experience.
C) fulfill corporate social responsibilities.
D) prevent the loss of current customers.
E) increase product and service sales.

Question 57

If Cary left her pharmaceutical sales job to take a management position in another company,her customers would become:

A) suspects
B) prospects.
C) segments.
D) orphans
E) referrals.

Question 58

The two best sources of future sales are:

A) customers and customer referrals.
B) colleagues and centers of influence.
C) customers and e-prospects.
D) sales lead clubs and referrals.
E) orphaned customers and current customers.

Question 59

Abel,a teenager,is trying to earn money by operating a dog walking service.Abel is knocking on the door of every dog owner within a six-block radius of his house and asking if the homeowner would like to use his service.Abel is using the _____ method of prospecting.

A) public demonstration
B) group
C) referral
D) cold canvass
E) endless chain

Question 60

_____ is the process of determining if a suspect is to become a prospect.

A) Scheduling
B) Networking
C) Qualifying
D) Routing
E) Funneling

Question 61

For you as a salesperson to find an optimal prospecting method,the text suggests you do all the following EXCEPT:

A) always call back on prospects who did not buy.
B) copy the prospecting methods of successful salespeople.
C) concentrate on high-potential customers before low-potential customers.
D) contact all prospects and current customers when you have a new product.
E) customize a prospecting method that suits the needs of your individual firm.

Question 62

In cases where there are a large number of prospects for a product,a salesperson should most likely use:

A) direct-mail prospecting.
B) center of influence prospecting.
C) sales lead club funneling.
D) endless chain prospecting.
E) cold canvass prospecting.

Question 63

Which of the following prospecting methods is most similar to telephone prospecting in terms of its objective?

A) Cold canvassing
B) Endless chain of referrals
C) Networking
D) Direct-mail prospecting
E) Observation

Question 64

Which of the following statements about referrals is true?

A) Salespeople should work on obtaining referrals when they are not engaged in selling activities
B) It would be inappropriate to try to enact the referral cycle during the sales presentation
C) Salespeople must sell the product, plus sell the prospect on providing referrals
D) All salespeople ask for customer referrals
E) The referral cycle consists of three steps

Question 65

Which of the following is NOT an appropriate time to request a referral?

A) Preapproach
B) Sales presentation
C) Product delivery stage
D) Service and follow-up
E) Trial close stage

Question 66

Jon Querillian wants to create a network of prospects for his landscaping business.Which of the following would be the LEAST effective method?

A) Sending thank-you notes to people who provide leads
B) Focusing on meeting center-of-influence people
C) Asking open-ended, feel-good types of questions
D) Sending contacts monthly sales promotional items
E) Sending contacts unflattering information about the competition

Question 67

The term given to making and using contacts for the purpose of prospecting is:

A) observing.
B) approaching.
C) telemarketing.
D) influencing.
E) networking.

Question 68

What is the most reliable and effective method for finding new prospects?

A) Cold canvassing
B) Direct mail
C) Networking
D) Telemarketing
E) Observation

Question 69

Elias does home repairs.On Sunday afternoons,he often drives in the community in which he lives looking for homes that need minor repairs and/or painting.Monday morning he calls those homeowners and offers his services.Elias is using the _____ method of prospecting.

A) observation
B) preapproach
C) networking
D) endless chain
E) center of influence

Question 70

Which term refers to a group of names of potential customers gathered from a variety of sources?

A) Orphans
B) Qualified prospect
C) Prospect pool
D) Customer canvass
E) Leaking customer bucket

Question 71

Which of the following statements about telephone prospecting is true?

A) It is less expensive than direct-mail prospecting.
B) It allows for quick qualification or rejection of a lead.
C) It is good for targeting niche prospects.
D) It is also called electronic canvassing.
E) It is more costly than a canvassing sales force.

Question 72

The _____ phase of the referral cycle provides a salesperson with ongoing opportunities to maintain contact with clients.

A) service and follow up
B) closing
C) product delivery
D) presentation
E) preapproach

Question 73

In order to serve more pet owners,East Rome Boarding Kennel seeks the assistance of area veterinarians in identifying people who are likely to need its services.This is an example of the _____ method of prospecting.

A) cold canvass
B) group
C) public exhibition
D) center of influence
E) endless chain

Question 74

Last night while he was eating dinner,Leo got a phone call from a salesperson who wanted to know if he would be interested in subscribing to the local newspaper.The salesperson would best be described as a:

A) endless chain prospect.
B) center of influence.
C) telemarketer.
D) prospect.
E) referral.

Question 75

Salespeople must sell the product,plus sell the prospect on providing referrals.This is known as the:

A) endless chain method.
B) canvassing method.
C) parallel referral sale.
D) cyclical method of referral.
E) referral qualification.

Question 76

Norman,the owner of CompuTex,recently installed computers at Harding Industries.Norman recommended that the Harding Industries office manager contact Computer Services,Inc.to schedule a computer training class for Harding's employees.This is an example of the _____ method of prospecting.

A) observation
B) preapproach
C) endless chain
D) center of influence
E) networking

Question 77

In order to cultivate a network,a salesperson should:

A) focus on meeting center-of-influence people.
B) use contact management software.
C) create a customer MAD file.
D) request on-the-job training.
E) use the KISS principle.

Question 78

Terrell,the marketing manager of Tekna Tools,is planning to attend the Anaheim Woodworking Trade Fair.Terrell will have a higher probability of success if he:

A) memorizes his sales pitch.
B) avoids the use of lead cards.
C) sets up in an area with little foot traffic.
D) acts assertively toward approaching passersby.
E) refuses to accept any rejections from leads and prospects.

Question 79

Within a salesperson's prospect pool,which group is the most important prospect for future sales?

A) Leads
B) Referrals
C) Centers of influence
D) Salesperson's customers
E) Orphans

Question 80

Prospecting via the _____ method involves finding and cultivating people in a community who are willing to help a salesperson find prospects.

A) cold canvass
B) group
C) public exhibition
D) center of influence
E) endless chain