Question 1

The members of a sales lead club:

Accepted Answer

Sales lead clubs are formed to share leads and prospecting tips. Groups are usually made up of salespeople in related but noncompetitive fields.

Question 2

What is the basis for cold canvassing?

Accepted Answer

The basis of cold canvassing is the law of averages, which suggests that even though many attempts may result in rejection, a certain percentage of them will produce a positive outcome. Therefore, practicing cold canvassing consistently can eventually lead to new business opportunities.

Question 3

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

Accepted Answer

E-prospecting is a fast and easy way to find information about potential prospects online. It allows salespeople to gather valuable insights into the needs and preferences of potential customers, enabling them to tailor their sales approach accordingly. Trade shows can also be effective for finding prospects, but they require a greater investment of time and money. E-prospecting does not necessarily rely heavily on qualified referrals or exclude technical products. It may require some level of monetary investment, such as paying for lead lists or subscriptions to prospecting software.

Question 4

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:

Accepted Answer

Sonia is using the internet to find potential buyers for her fishing flies, which is a form of e-prospecting. Data mining involves analyzing large amounts of data to uncover patterns and insights, direct marketing typically involves targeting specific individuals with promotional materials, direct selling involves selling directly to the customer without intermediaries, and networking involves building relationships with individuals or groups to gain information or opportunities.

Question 5

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.

Accepted Answer

Abel is knocking on the door of every dog owner without any prior relationship or referral, making it a cold canvass method of prospecting.

Question 6

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:

Accepted Answer

Kenton's activity of writing a column for the local newspaper is most likely aimed at creating prospects for his insurance business. By addressing issues concerning financial security, he positions himself as an expert in the field and attracts potential customers who may be interested in his services.

Question 7

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:

Accepted Answer

The office manager of Hoffman Realty has been determined by the sales manager to have the money, desire, and authority to purchase a new copy machine, making them a qualified prospect.

Question 8

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

Accepted Answer

Orphans refer to customers who have been left behind by a sales representative who has moved on to a different job, leaving no one to continue the relationship or provide ongoing support.

Question 9

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

Accepted Answer

A potential buyer who has shown interest in your product or service is called a lead. However, a lead only becomes a prospect when they have been qualified as having the potential and the willingness to buy your product or service. Therefore, the correct answer is E - prospect.

Question 10

The two best sources of future sales are:

Accepted Answer

Customers and customer referrals are the best sources of future sales because they are more likely to have a positive experience with the company and will share that experience with others, leading to potential new customers. This is also a cost-effective way of generating new business as it does not require the same amount of money and resources as other sources such as sales lead clubs and e-prospects.

Question 11

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.

Accepted Answer

Langley is using the endless chain referral method of prospecting, where he asks his customers for the names of their friends, and then asks those friends for more names. This method creates an endless chain of potential prospects.

Question 12

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?

Accepted Answer

The acronym "MAD" stands for "money, authority, and desire," which are the three factors that Rico should consider when qualifying his prospects. This means he should determine if they have the financial resources to make the purchase, the decision-making authority to approve the sale, and the desire or need for the product. By doing this, Rico can focus his efforts on presenting to qualified leads who are more likely to close a sale.

Question 13

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

Accepted Answer

Prospecting is the lifeblood of sales because it identifies potential customers. A salesperson must look constantly for new prospects to increase sales and to replace customers that will be lost over time.

Question 14

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

Accepted Answer

Qualifying is the process of determining if a suspect is a potential prospect by evaluating their likelihood of becoming a paying customer. Scheduling, networking, routing, and funneling are all related to the sales process but do not directly pertain to the act of determining if a suspect has potential as a customer.

Question 15

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:

Accepted Answer

Orphaned customers are customers whose salesperson has left the company. Salespeople often leave their employers to take other jobs; when they do, their customers are orphaned. These orphans would be great prospects for Kylie.

Question 16

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

Accepted Answer

The endless referral chain method of prospecting involves building relationships with customers to get future referrals. The salesperson asks for referrals from their current clients by providing excellent service and making sure they are satisfied. The goal is not to just get one or two referrals, but to create a chain that keeps generating referrals indefinitely. Option A is incorrect because getting at least two referrals per sales call is not the only indicator of success. Option B is incorrect because the salesperson would not ask the customer to set up future appointments with referrals, but rather ask for referrals directly. Option C is incorrect because selling memberships to sales lead clubs is not part of the endless referral chain method. Option D is incorrect because the salesperson should focus on building relationships with current and satisfied customers, not orphaned customers.

Question 17

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?

Accepted Answer

Lydia is using the endless chain prospecting method by asking each homeowner if they know anyone who would be interested in her products.

Question 18

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:

Accepted Answer

Danny is actively seeking potential customers by going door-to-door, which is the definition of prospecting in the selling process. Identifying refers to identifying the needs and wants of the customer, referring is when a customer recommends a product or service to others, networking is building relationships with potential customers, and direct marketing is advertising directly to the customer.

Question 19

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.

Accepted Answer

Qualifying is the process of determining if a potential customer is actually a good fit for the product or service being offered. In this situation, Ann needs to determine if Handlemann's Deli is a good fit for her furniture and equipment before spending time and effort trying to convince them to buy.

Question 20

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

Accepted Answer