Deck 5: Strategic Prospecting and Preparing for Sales Dialogue

Question 1

Which statement provides the best rationale for prospecting for new business for most salespeople?

A) to stay ahead of the competition
B) to keep sharp by practising selling skills
C) to replace lost customers and achieve sales growth targets
D) to keep productivity high by filling in the time between sales calls on existing customers

Answer 1

C

Question 2

What is the term for an individual or organization that has a need for the product or service, has the budget or financial resources to purchase the product or service, and has the authority to make the purchase decision?

A) a customer
B) a sales prospect
C) a target customer
D) a sales lead (suspect)

Answer 2

B

Question 3

Simon is a salesperson for XYZ Corporation. His territory includes 50 established accounts, which he calls on regularly. Although Simon is supposed to allocate some time to prospecting on a regular basis, he would rather call on his existing accounts. According to the textbook, why is Simon most likely to resist prospecting?

A) He is afraid of rejection.
B) He doesn't believe it's necessary.
C) He would rather use his spare time for paperwork.
D) His established accounts are too important to ignore.

Answer 3

A

Question 4

With respect to the strategic prospecting process, what is the difference between a sales lead (suspect) and a sales prospect?

A) The sales prospect is currently buying from a competitor.
B) The salesperson has qualified the sales lead to determine potential.
C) The sales prospect has purchased similar goods from a competitor in the past.
D) The sales lead fits the ideal customer profile of the target market.

Question 5

According to the textbook, how is the strategic prospecting process often viewed?

A) as a black box
B) as a sales funnel
C) as a flowchart
D) as a tree diagram

Question 6

What is the term for the prospecting method in which a salesperson's customers or prospects give him or her leads?

A) the introduction method
B) the cold calling method
C) the direct method
D) the referral method

Question 7

What is the process designed to identify, qualify, and prioritize sales opportunities from new customers or additional business from existing customers?

A) sales blocking
B) strategic prospecting
C) lead determination
D) new revenue maximization

Question 8

Which statement best describes the basic purpose of strategic prospecting?

A) to help salespeople determine the best sales opportunities in the most efficient way
B) to improve the process of generating leads
C) to streamline the process of identifying, qualifying, and prioritizing sales opportunities
D) to improve the success rate of converting prospects into customers

Question 9

What is the term for a summary of the characteristics of a firm's best customers or the perfect customer?

A) an ideal customer profile
B) a certified sales lead
C) a customer purchasing criteria
D) a hot prospect list

Question 10

Which sales prospecting method involves calling on sales leads unannounced and using referrals and introductions?

A) cold canvassing
B) networking
C) company sources
D) published sources

Question 11

Which statement provides the best rationale of allocating time for prospecting for new business on a consistent basis?

A) The process of converting prospects to customers often takes much longer than expected.
B) Selling skills take a long time to develop but are lost quickly during periods of inactivity.
C) Achieving sales growth targets is a priority for most salespeople all year long.
D) Prospecting for new business can be very time-consuming, so it is better to leave it until times of inactivity.

Question 12

What is the term for organizations or individuals who might possibly purchase the product or service a salesperson offers?

A) strategic potentials
B) sales leads (suspects)
C) sales prospects
D) target markets

Question 13

Why is the strategic prospecting process often viewed as a sales funnel?

A) The beginning of the process is very busy with a great deal of slippage.
B) The funnel shape illustrates the importance of flow-through in prospecting activities.
C) The conversion of potential sales opportunities into profitable transactions generates a great deal of waste material that must be carried away.
D) The process reduces a large number of potential sales opportunities into a smaller number of successful sales interactions.

Question 14

Huda is a salesperson for ABC Company and has had trouble prospecting effectively. Approximately 70 percent of the leads she contacts do not have any influence in the purchase decision process. What is Huda most likely having trouble with?

A) communicating with her leads
B) selling her product to her leads
C) qualifying her leads
D) responding to her leads

Question 15

What is the term for the process of searching out, collecting, and analyzing information to determine the likelihood of a sales lead being a good candidate for making a sale?

A) preselection by potential
B) sales prospecting
C) qualifying sales leads
D) narrowing the field

Question 16

What could a salesperson using the cold calling method of sales prospecting do to improve his or her efficiency in finding sales leads with a high probability of becoming customers?

A) prequalify the suspect through telephone contact
B) use referrals or introductions
C) use company sources
D) use published sources

Question 17

According to the textbook, why do salespeople often find it difficult to allocate time for prospecting?

A) They are too busy looking after existing clients.
B) They see prospecting as an activity with a low probability of success.
C) Most sales managers put a low priority on activities related to prospecting for new business.
D) They fear the rejection that comes with prospecting for new business.

Question 18

Of the sales prospecting methods listed below, which is likely to be the least efficient in terms of finding sales leads with a high probability of becoming customers?

A) cold calling
B) networking
C) company sources
D) published sources

Question 19

Damien is a salesperson who relies on his current customers to help him identify potential new customers. Which method for lead generation is Damien relying on?

A) cold calling
B) referral
C) company source
D) customer source initiative

Question 20

From a sales manager's perspective, what is the essential difference between a sales lead (suspect) and a sales prospect?

A) The sales prospect is currently buying from a competitor and therefore has a need.
B) The sales lead has more potential to become an actual customer.
C) The sales prospect has a higher probability of becoming an actual customer.
D) The sales lead fits the ideal customer profile of the target market.

Question 21

What has replaced cold calling as a major source of new customers?

A) networking
B) Web-based marketing
C) trade shows
D) advertising

Question 22

In which prospecting method do salespeople seek to obtain leads from thought leaders?

A) the introduction method
B) the known entity method
C) the centres of influence method
D) the referrals method

Question 23

Why can inviting prospective customers to a seminar create a good source of qualified prospects for a salesperson?

A) A seminar can provide information that creates value for those customers who choose to attend.
B) Seminars are more effective than networking due to the larger numbers of people reached at one time.
C) Seminars can be combined with an outbound telemarketing program to create a low-pressure sales environment.
D) Seminars are similar to cold canvassing methods except when attempting to sell higher-value goods or services.

Question 24

Which form of locating prospects brings the prospect to the salesperson?

A) centres of influence
B) cold canvassing
C) trade shows
D) noncompeting salespeople

Question 25

What is the first step in a strategic prospecting plan?=

A) set goals for prospecting activities
B) allocate specific times for prospecting activities
C) track results of prospecting activities
D) evaluate the effectiveness of prospecting activities

Question 26

What is the part of a strategic prospecting plan that records comprehensive information about the prospect, traces the prospecting methods used, and chronologically archives outcomes from any contacts with the prospect?

A) administrative follow-up
B) tracking system
C) time allocation mechanism
D) performance feedback system

Question 27

Why is a tracking system important to prospecting?

A) The tracking system allows salespeople to track the progress of their existing customers.
B) The tracking system allows salespeople to limit the time they spend prospecting.
C) The tracking system allows salespeople to improve their image with management.
D) The tracking system allows salespeople to monitor the effectiveness of their various prospecting methods

Question 28

What method of locating sales prospects involves the prospect calling the company to get information?

A) permission-based marketing
B) networking
C) inbound telemarketing
D) cold canvassing

Question 29

What method of locating sales prospects involves a salesperson or another company representative calling the prospect by telephone?

A) outbound telemarketing
B) networking
C) commercial data-mining
D) cold canvassing

Question 30

Which sales prospecting method uses centres of influence, noncompeting salespeople, and online resources such as social media?

A) cold canvassing
B) networking
C) company sources
D) published sources

Question 31

Marc is a salesperson for a large consumer products manufacturer. He has just taken over a new territory and wants to begin the prospecting process. What is the first thing he should develop?

A) a list of leads
B) a list of qualified prospects
C) a strategic prospecting plan
D) a territory plan

Question 32

Drew is a salesperson for a company that manufactures bed liners for pickup trucks. Drew relies on his friend Susan, a salesperson for a local truck dealership, for leads. Susan calls Drew and lets him know when someone has purchased a new pickup truck. What is the term for Drew's source of leads?

A) company records
B) a centre of influence
C) a noncompeting salesperson
D) a trade show

Question 33

What is the third step of a strategic prospecting plan?

A) set goals for prospecting activities
B) allocate specific times for prospecting activities
C) track results of prospecting activities
D) evaluate the effectiveness of prospecting activities

Question 34

Which sales prospecting method uses business and municipal directories and commercial lead lists?

A) cold canvassing
B) networking
C) company sources
D) published sources

Question 35

According to the textbook, which statement best summarizes the effectiveness of social media as a sales prospecting method?

A) Social media has proven to be more effective than cold canvassing but less effective than traditional networking options.
B) Due to its popularity, social media has the potential to replace most traditional sources of networking for salespeople.
C) Most companies limit salesperson access to social media to keep them focused and productive.
D) Social media is a communication tool and therefore is better suited for relationship management than as a sales prospecting tool.

Question 36

According to the textbook, with respect to prospecting methods, which of the following best summarizes the effectiveness of published sources such as directories and commercial lead lists?

A) Published sources such as directories and commercial lead lists are more expensive and therefore less efficient to use as a prospecting method than cold canvassing.
B) Since they are freely available to anyone, published sources are not very useful to salespeople as a method of locating prospects.
C) The increased popularity of the Internet has reduced the usefulness of published sources such as directories and commercial lead lists for prospecting.
D) Although accuracy can sometimes be a problem, published sources such as directories and commercial lead lists can provide salespeople with a wealth of information.

Question 37

According to the textbook, what is the primary reason for a salesperson to create and use a strategic prospecting plan?

A) to be as productive as possible in the given time
B) to shows a higher level of professionalism
C) to remaining competitive within your particular industry
D) to have a more reactive approach to managing sales

Question 38

What is the term for the prospecting method in which a salesperson's customers or prospects give him or her leads and provide a background letter?

A) the introduction method
B) the cold canvassing method
C) the bird-dog method
D) the referral method

Question 39

Which sales prospecting method uses company records, advertising and telephone inquiries, trade shows, and seminars?

A) cold canvassing
B) networking
C) company sources
D) government sources

Question 40

What is the second step of a strategic prospecting plan?

A) set goals for prospecting activities
B) allocate specific times for prospecting activities
C) track results of prospecting activities
D) evaluate the effectiveness of prospecting activities

Question 41

What is the fourth step of a strategic prospecting plan?

A) set goals for prospecting activities
B) allocate specific times for prospecting activities
C) track results of prospecting activities
D) evaluate the effectiveness of prospecting activities

Question 42

Good salespeople do not need to prospect, as customers come to them.

Question 43

According to the textbook, the main reason that salespeople dislike prospecting is that it is too time-consuming in comparison to the results generated.

Question 44

Natalie has been a salesperson for the past two years. Although prospecting is a big part of her job, she is not sure how well her prospecting methods are working. What should she develop?

A) a referral list
B) a tracking system
C) a list of lead generation methods
D) a list of prospecting methods

Question 45

According to the textbook, once potential customers have been identified, what should a salesperson do next?

A) develop a prospecting strategy
B) call on the qualified prospect
C) send the qualified prospect a sales letter
D) begin gathering precall information

Question 46

In general, most prospects are eager to meet with salespeople.

Question 47

Suppose you are a salesperson working for a manufacturer of business machinery. While gathering precall information you learn that a prospect you are preparing to call on is actually a member of a buying team. Which statement best represents what you should do next?

A) Identify the decision maker on the buying team and focus all of your selling efforts on that individual.
B) Identify the purchasing agent on the buying team and focus your selling efforts on that individual.
C) Identify the role of each member of the buying team and the amount of influence each exerts.
D) Create a written sales proposal and give it to your contact so that he or she can pass it out to the other buying team members.

Question 48

The strategic prospecting process is often illustrated as an inverted closed-end funnel.

Question 49

Getting past the gatekeeper in an organization to make contact with decision makers is one of a salesperson's greatest challenges with prospecting.

Question 50

With respect to sales prospecting, the only difference between a "suspect" and a prospect is how much money the person has available to spend on the product or service in consideration.

Question 51

For most salespeople, achieving sales growth objectives requires finding a balance between generating additional business from existing customers and finding new customers.

Question 52

The basic purpose of strategic prospecting is to identify leads.

Question 53

Salespeople should spend time prospecting on a regular basis because there is typically a considerable time lag between the commencement of prospecting and the conversion of prospects to customer status.

Question 54

Gina, a salesperson for ABC Corp., spends a lot of time interviewing her prospects so she can learn their names, interests, and job responsibilities. What should Gina probably spend more time doing?

A) talking about her product and company
B) obtaining leads from better sources
C) talking about herself
D) obtaining precall information on the prospect

Question 55

What is the purpose of gathering precall information?

A) to be used for the salesperson to decide whether to make the call or not
B) to be used to develop rapport with the prospect and eventually tailor the sales presentation to fit the buyer's needs
C) to be used to satisfy the legal requirements of the Freedom of Information Act of 1996
D) to be used to determine the best way to approach the prospect

Question 56

The basic purpose of strategic prospecting is to help salespeople determine the best sales opportunities in the most efficient way.

Question 57

Craig is a salesperson for an industrial equipment company. He calls on factories and spends most of his time talking with equipment operators who work on the factory floor. While Craig is able to get the equipment operators interested in his products, he is often unable to make a sale. What does Craig need to work on?

A) determining other purchase decision influencers
B) his record keeping
C) improving his questioning skills
D) his cold canvassing ability

Question 58

Prospects may be reluctant to see a salesperson if they have never heard of the salesperson's firm.

Question 59

Highly productive salespeople have much narrower sales funnel bottoms than less productive salespeople.

Question 60

Which statement about evaluating prospecting activities is most accurate?

A) Salespeople should evaluate their prospecting activities once a year.
B) Salespeople should evaluate their prospecting activities twice a year.
C) Salespeople should have their sales managers evaluate their prospecting activities twice a year.
D) Salespeople should evaluate their prospecting activities on a continuous basis.

Question 61

The characteristics of a firm's best customers, or the perfect customer, are known as the ideal customer profile.

Question 62

Many organizations use both inbound and outbound telemarketing to generate leads.

Question 63

Using referrals and introductions does not improve the efficiency of cold canvassing.

Question 64

The more the salesperson knows about his or her qualified prospects, the better the chance he or she has of developing successful relationships with those prospects.

Question 65

According to the textbook, social media such as Facebook and MySpace have proven to be excellent prospecting tools for salespeople.

Question 66

Most salespeople should ignore looking at company records as a sales prospecting method due to its low efficiency in generating new business.

Question 67

Outbound telemarketing is a form of cold calling.

Question 68

In comparison to other prospecting methods, cold calling is highly inefficient.

Question 69

The heart of a strategic prospecting plan is a tracking system that captures the information gathered as a result of prospecting activities.

Question 70

One of the key advantages of trade shows is the generation of good leads.

Question 71

Organizations or individuals who might possibly purchase the product or service a salesperson offers are known as sales prospects.

Question 72

The advent of electronic networking has made prospecting for new business even more difficult.

Question 73

Inquiries as a result of advertising are a poor source of customer prospects due to self-selection.

Question 74

Networking with salespeople from noncompeting firms can be a productive method of prospecting for new business.

Question 75

Published sources are rarely used for sales prospecting activities due to their inherent inaccuracies.

Question 76

Advertising inquiries are like inbound telemarketing in that the lead does some degree of self-qualifying.

Question 77

Due to the time involved, the strategic prospecting plan should not be evaluated on any more than an annual basis.

Question 78

The first step in developing a strategic prospecting plan is to allocate time for prospecting activities.

Question 79

Conducting product or service seminars can be a good source of customer prospects because those who attend have chosen to be there.

Question 80

The process of searching out, collecting, and analyzing information to determine the likelihood of a sales lead being a good candidate for making a sale is known as qualifying.