Question 1

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

Accepted Answer

Web-based marketing has largely replaced cold calling as a major source of new customers due to the increased use of the internet and social media for business purposes. Networking and trade shows can also be effective in generating leads, but they may not reach as many potential customers as web-based marketing. Advertising can be useful, but it can also be expensive and may not be targeted to a specific audience.

Question 2

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

Accepted Answer

The centres of influence method involves seeking leads from influential individuals or groups, such as thought leaders in the industry. This can help to establish a network of connections and increase the chances of finding potential customers who are interested in the product or service being sold. The introduction method involves being introduced to potential customers by someone they know, the known entity method involves targeting individuals or companies who are already familiar with the salesperson or their product/service, and the referrals method involves seeking leads from current customers who may know others who would be interested in the product/service. While these methods can also be effective, they do not specifically target thought leaders in the same way that the centres of influence method does.

Question 3

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

Accepted Answer

By inviting prospective customers to attend a seminar, a salesperson can provide valuable information that creates a sense of trust and credibility with the attendees. This can then lead to more qualified prospects for the salesperson because those who attend the seminar are likely interested in the topic and may have a need for the product or service being offered. Additionally, the seminar provides an opportunity for the salesperson to engage with prospects and answer any questions they may have.

Question 4

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

Accepted Answer

Trade shows are events specifically designed for businesses to showcase their products and services to potential customers. Prospects attend these shows with the intention of exploring what different businesses have to offer, making it an ideal platform for salespeople to reach out to interested prospects and potentially convert them into customers. This form of prospecting brings the prospect to the salesperson, as opposed to the salesperson going out in search of prospects through cold canvassing or other methods.

Question 5

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

Accepted Answer

The first step in a strategic prospecting plan should be to set goals for prospecting activities. This will help to establish a clear direction and purpose for the prospecting efforts, providing a framework for the other steps involved in the process. Without clearly defined goals, it can be difficult to determine what actions and strategies will be most effective in generating leads and building relationships with potential customers. Once goals have been set, it becomes easier to allocate specific times for prospecting activities, track results, and evaluate the effectiveness of the overall plan.

Question 6

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?

Accepted Answer

The part of a strategic prospecting plan that records comprehensive information about a prospect, traces prospecting methods used, and chronologically archives outcomes from contacts with the prospect is the tracking system. This allows salespeople to efficiently track their progress with a prospect and adjust their methods accordingly.

Question 7

Why is a tracking system important to prospecting?

Accepted Answer

The tracking system allows salespeople to monitor the effectiveness of their various prospecting methods. By keeping track of which methods are generating the most leads and converting the most prospects into customers, salespeople can adjust their techniques and focus their efforts on the most effective methods, ultimately improving their overall success rate.

Question 8

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

Accepted Answer

Inbound telemarketing involves the prospect calling the company to get information. This method is less intrusive than cold canvassing and allows the prospect to initiate the conversation.

Question 9

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

Accepted Answer

Outbound telemarketing involves actively calling potential customers over the phone to try and sell them a product or service. This method is often used to reach a large number of prospects quickly and efficiently.

Question 10

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

Accepted Answer

Networking involves using various resources and connections such as centres of influence, noncompeting salespeople, and online resources like social media to develop and expand relationships with potential clients. Cold canvassing is a method of making unsolicited calls or visits to potential clients, while company and published sources refer to gathering information on potential clients through company directories or publicly available information.

Question 11

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?

Accepted Answer

Before Marc can start prospecting, he needs to develop a strategic prospecting plan. This plan should outline his target market, goals, methods of outreach, and timeline. It will help him stay organized and focused as he works to generate leads and convert them into customers. Once he has a plan in place, he can start creating a list of leads and qualified prospects and putting his plan into action. Developing a territory plan may also be important, but it should come after the strategic prospecting plan.

Question 12

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?

Accepted Answer

Susan, as a noncompeting salesperson, provides Drew with leads by informing him about new truck purchases, which is a common practice among salespeople in different but related industries.

Question 13

What is the third step of a strategic prospecting plan?

Accepted Answer

The third step of a strategic prospecting plan is to track the results of prospecting activities. This involves keeping track of leads generated and evaluating the success of various prospecting tactics. Tracking results is essential for making data-driven decisions and continually improving the prospecting process. While setting goals, allocating specific times, and evaluating effectiveness are all important steps, tracking results is the natural next step after implementing prospecting activities.

Question 14

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

Accepted Answer

Published sources, such as business and municipal directories and commercial lead lists, are commonly used in sales prospecting to identify potential customers and gather information about their business. This method falls under the category of published sources. Cold canvassing involves reaching out to potential customers who have had no prior contact with the salesperson, networking involves building relationships and connections in the industry to generate leads, and company sources refer to using internal data to identify potential customers, such as sales reports or customer databases.

Question 15

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

Accepted Answer

Social media is primarily a communication tool, which makes it more effective for managing existing relationships rather than initiating new sales prospects. This distinction highlights its role in nurturing and maintaining connections rather than directly generating new sales leads.

Question 16

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?

Accepted Answer

The textbook states that although accuracy can sometimes be a problem, published sources such as directories and commercial lead lists can provide salespeople with a wealth of information, making them an effective prospecting method. It also notes that while they may be more expensive than some other methods, their efficiency can still make them worthwhile. The textbook does not suggest that the popularity of the internet has reduced their usefulness.

Question 17

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

Accepted Answer

The primary reason for a salesperson to create and use a strategic prospecting plan is to be as productive as possible in the given time. A well-planned and strategic approach to prospecting allows salespeople to use their time effectively and focus on the most promising leads, which leads to higher productivity and better results.

Question 18

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?

Accepted Answer

The answer of What is the term for the prospecting...

Question 19

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

Accepted Answer

Company sources involve using a variety of methods including company records, advertising and telephone inquiries, trade shows, and seminars to identify potential sales prospects within a particular company or industry. Cold canvassing involves approaching potential customers or clients without any prior relationship or knowledge of their interest in the product or service. Networking involves building relationships and connections with other individuals and businesses who may be able to provide sales leads. Government sources involve using public records and data to identify potential sales prospects within government agencies.

Question 20

What is the second step of a strategic prospecting plan?

Accepted Answer

Allocating specific times for prospecting activities is crucial as the second step in a strategic prospecting plan. This ensures that dedicated effort is put into prospecting, making it a consistent part of the sales process.

Quiz 5: Strategic Prospecting and Preparing for Sales Dialogue