Question 1

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.

Accepted Answer

Networking refers to the process of making and using contacts. Computer Services benefits from Norman recommending their services to Harding Industries.

Question 2

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

Accepted Answer

Networking is the most effective method for finding new prospects as it allows for personal connections and referrals. Cold canvassing and telemarketing can often lead to uninterested or unreceptive prospects, while direct mail can be expensive and have a low response rate. Observation may lead to potential prospects, but it is not a reliable or efficient method for finding new leads.

Question 3

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

Accepted Answer

Sending unflattering information about the competition can come across as negative and unprofessional, potentially damaging relationships with prospects. It is important to focus on building positive connections with potential customers. Choices A, B, and C are all effective ways to establish and strengthen relationships with prospects. Choice D can also be effective if the promotional items are valuable and relevant to the prospect.

Question 4

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

Accepted Answer

Customize or choose a prospecting method that fits the specific needs of your individual firm, but do not copy another company's method. Reach out to high-potential customers before low-potential ones.

Question 5

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

Accepted Answer

The service and follow up phase of the referral cycle involves maintaining contact with clients to ensure satisfaction and build long-term relationships. This phase provides opportunities for the salesperson to continue selling to the client, gaining referrals and repeat business. The other phases (closing, product delivery, presentation, and preapproach) do not provide ongoing opportunities for contact with clients.

Question 6

Which of the following statements about referrals is true?

Accepted Answer

While all of the statements are partially true, only statement C accurately reflects the process of obtaining referrals. Salespeople must not only sell their product, but also sell the prospect on the value of providing referrals. This involves building trust and establishing a strong relationship with the prospect. The other statements may be partially true, but do not accurately reflect the importance of selling the prospect on providing referrals.

Question 7

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

Accepted Answer

Like direct marketing, use of telephone prospecting to contact a large number of prospects across a vast area is far less costly than use of a canvassing sales force, though usually more costly than mail outs.

Question 8

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:

Accepted Answer

The salesperson is making a direct sales call over the phone, which is commonly known as telemarketing.

Question 9

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

Accepted Answer

A prospect pool is a collection of potential customer names obtained from various sources. Orphans is not a term used in sales and marketing, qualified prospect refers to a specific individual who has shown interest and has the means to make a purchase, customer canvass is the act of going door-to-door to find potential customers, and leaking customer bucket refers to losing existing customers.

Question 10

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.

Accepted Answer

Elias is prospecting by observing homes in his community that need repairs and painting, which is an example of the observation method. The preapproach method involves gathering information about the prospect before making contact, networking involves reaching out to personal and professional contacts for leads, the endless chain involves getting referrals from satisfied customers, and the center of influence involves developing relationships with influential individuals who can refer business. None of these methods apply to Elias's approach.

Question 11

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

Accepted Answer

In cases where there are a large number of prospects for a product, direct-mail prospecting is sometimes an effective way to contact individuals and businesses. Direct-mail advertisements have the advantage of contacting large numbers of people, who may be spread across an extended geographical area, at a relatively low cost when compared to the cost of using salespeople.

Question 12

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

Accepted Answer

During the trial close of a presentation, a salesperson is assessing the attitude of the prospect about a product, which would not be an effective time to request a referral. The four stages of the referral cycle are preapproach, presentation, product delivery, and service and follow-up.

Question 13

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:

Accepted Answer

Acting assertively toward approaching passersby is likely to get Terrell more leads and prospects than other options. While memorizing his sales pitch is important, it is not the only factor in achieving success at a trade fair. Avoiding the use of lead cards may prevent Terrell from collecting important information about potential customers or their needs. Setting up in an area with little foot traffic could limit Terrell's chances of making meaningful connections with potential clients. Refusing to accept any rejections from leads and prospects could make Terrell come across as pushy or desperate, potentially turning them off from doing business with Tekna Tools.

Question 14

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

Accepted Answer

Salespeople must sell the product, plus sell the prospect on providing referrals. This is known as the parallel referral sale. Equal emphasis must be given to both the product sale and the referral sale.

Question 15

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

Accepted Answer

The salesperson's current customers are the most important prospects for future sales because they have already demonstrated a willingness to buy from the salesperson and may have ongoing needs for the product or service. It is much easier and more cost-effective to sell to an existing customer than to acquire a new one. Additionally, satisfied customers can become advocates and provide referrals to others who may be interested in the product or service.

Question 16

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

Accepted Answer

The center of influence method involves building relationships with individuals in a community who can introduce a salesperson to potential prospects. These individuals typically have a significant amount of influence and connections within their community, making them valuable resources for prospecting.

Question 17

In order to cultivate a network, a salesperson should:

Accepted Answer

Meeting center-of-influence people who have a large network themselves can help expand the salesperson's own network. This can lead to more business opportunities and referrals. While B, C, and E can also be helpful in building a network, they do not specifically address the importance of meeting and networking with influential individuals. On-the-job training may be important for developing sales skills, but it is not directly related to building a network.

Question 18

Which of the following statements about telephone prospecting is true?

Accepted Answer

Telephone prospecting allows for quick qualification or rejection of a lead, as it offers immediate interaction with the prospect. The other statements are either false (A, D, and E) or not specific to the advantages of telephone prospecting (C).

Question 19

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

Accepted Answer

Networking involves building and maintaining relationships with individuals and businesses to establish a pool of potential customers or leads. This is a key aspect of prospecting and can help build long-term business relationships.

Question 20

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.

Accepted Answer

The method described in the scenario is the center of influence method, which involves seeking referrals from individuals or organizations that have influence over the target market. In this case, the area veterinarians are likely to have connections with pet owners who may need boarding services, which makes them a valuable center of influence.

Quiz 7: Prospecting the Lifeblood of Selling