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Chapter 05: Strategic Prospecting and Preparing for Sales Dialogue
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True / False
1. Salespeople need to spend some 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.
a.
True
b.
False
ANSWER:
True
2. Today's buyers have an abundance of time, and many are keen to see salespeople.
a.
True
b.
False
ANSWER:
False
3. In order for a lead to be considered a sales prospect, the lead must have a need for the salesperson's product.
a.
True
b.
False
ANSWER:
True
4. Sales prospects who most closely fit an ideal customer profile are deemed to be the best sales prospects.
a.
True
b.
False
ANSWER:
True
5. Salespeople from noncompeting companies cannot be considered a source for getting leads.
a.
True
b.
False
ANSWER:
False
6. An organization's records of former customers are usually a poor source for prospecting.
a.
True
b.
False
ANSWER:
False
7. Organizations today only use outbound telemarketing to generate leads because inbound telemarketing cannot be used
to generate leads.
a.
True
b.
False
ANSWER:
False
8. A buyer's name, title, and contact information constitute basic information about the buyer's selling situation.
a.
True
b.
False
ANSWER:
False
9. Basic information about the prospect's company makes it easier for the salesperson to ask questions during the sales
dialogue.
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a.
True
b.
False
ANSWER:
True
10. Prospects are typically impressed with salespeople who are prepared and know a lot about them and their company
before the first meeting.
a.
True
b.
False
ANSWER:
True
Multiple Choice
11. Which of the following is a reason why salespeople get rejected by buyers?
a.
Salespeople do not have specific information about the buying situation.
b.
Buyers prefer talking to a selling firm directly, and not its salespeople.
c.
Today's buyers are busy, and many are reluctant to see salespeople.
d.
Buyers do not find salespeople to be value oriented.
e.
Buyers are always well informed and do not rely on salespeople for information.
ANSWER:
c
12. Steve is a salesperson for the Cloud Nine Corporation. His territory includes 50 established accounts which he calls on
regularly. Although Steve is supposed to allocate some time to prospecting, he prefers to call on his existing accounts.
Which of the following is most likely the reason why Steve resists prospecting?
a.
He is afraid of rejection.
b.
He does not believe it is necessary.
c.
He knows it always leads to failure.
d.
His established accounts will generate enough future revenue.
e.
If he loses sales volume, he can quickly regain it without prospecting.
ANSWER:
a
13. Which of the following is true of strategic prospecting?
a.
Strategic prospecting helps salespeople identify the best sales opportunities.
b.
Strategic prospecting is an easy process and does not consume much of a salesperson's time.
c.
Salespeople cannot use strategic prospecting to generate additional business from existing customers.
d.
Strategic prospecting does not help in the generation of future revenue.
e.
Salespeople like prospecting, as buyers are always ready to see them.
ANSWER:
a
14. Sandy is a salesperson who has trouble prospecting effectively. Approximately 80 percent of the leads she contacts do
not end up making a purchase, for various reasons. Sandy would likely not have wasted so much of her time if she had
collected more information about those leads. Sandy is probably having trouble:
a.
communicating with her leads.
b.
preparing a sales dialogue.
c.
qualifying her leads.
d.
responding to her leads.
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e.
working for her firm.
ANSWER:
c
15. Megan is a salesperson for a company that manufactures chemicals. While reviewing her new leads, Megan learned
that two of them just signed contracts with one of her company's major competitors. Which of the following best describes
why Megan will not consider these two leads as sales prospects?
a.
They do not have the budget or financial resources to purchase the product.
b.
They do not have a need for the products or services her company is offering.
c.
They are too busy to meet with salespeople.
d.
They do not have the authority to make a purchase decision.
e.
They are not in her company's target market.
ANSWER:
b
16. Craig is a salesperson for an industrial equipment company. Craig 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. In this scenario, Craig needs to:
a.
identify the people with the authority to make the purchase decision.
b.
develop his confidence and believe that he offers the best solutions.
c.
establish a daily schedule for conducting prospecting activities.
d.
try different prospecting methods to find the one that suits his product.
e.
establish daily, weekly, and monthly quotas for acquiring new prospects.
ANSWER:
a
17. Which of the following is true of cold canvassing?
a.
It occurs when salespeople call prospects unannounced.
b.
It is a very efficient form of prospecting.
c.
Buyers are always willing to see salespeople who use this method.
d.
It allows salespeople to build relationships with other members of a community.
e.
Salespeople give presentations to prospective customers when using this method.
ANSWER:
a
18. Which of the following methods of prospecting is considered to be very inefficient?
a.
Electronic networking
b.
Trade shows
c.
Cold calling
d.
Company records
e.
Seminars
ANSWER:
c
19. Sarah is a salesperson who prefers calling or meeting her sales leads before getting any information about them or
their companies. Sarah uses _____ as a source of sales prospecting.
a.
centers of influence
b.
networking
c.
cold calling
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d.
company records
e.
advertising inquiries
ANSWER:
c
20. Bill is a salesperson who relies on his current customers to help him identify potential new customers. In this scenario,
Bill relies on _____ for lead generation.
a.
sources of influence
b.
referrals
c.
company sources
d.
trade shows
e.
cold calling
ANSWER:
b
21. A(n) _____ is a variation of a referral where, in addition to requesting the names of prospects, the salesperson asks the
prospect or customer to prepare a note or letter that can be sent to the potential customer.
a.
directory
b.
cold call
c.
trade show
d.
introduction
e.
seminar
ANSWER:
d
22. Drew is a salesperson for a company that manufactures seat covers for pickup trucks. Drew relies on his friend
Susan—the owner of the biggest truck dealership in the entire state—for leads. Susan calls Drew and lets him know when
someone has purchased a new pickup truck. In this scenario, Drew uses a _____ as a source of lead generation.
a.
company record
b.
sales seminar
c.
cold call
d.
tradeshow
e.
center of influence
ANSWER:
e
23. Pete is a salesman who is a member of The Green Stones Country Club. The club is frequented by lawyers, doctors,
and other members of the community. Pete will often identify new prospects while striking up conversations with the club
members. Pete uses the club members as _____.
a.
commercial sources
b.
referrals
c.
noncompeting salespeople
d.
advertising inquiries
e.
centers of influence
ANSWER:
e
24. Which of the following is used by salespeople to identify previous customers who have not placed an order recently?
a.
Advertising inquiries
b.
Non-competing salespeople
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c.
Centers of Influence
d.
Referrals
e.
Company records
ANSWER:
e
25. Which of the following is true of trade shows?
a.
During trade shows, salespeople use members of different organizations to generate prospects for each other.
b.
During trade shows, salespeople use company records to identify previous customers who have not placed an
order recently.
c.
Salespeople use trade shows to demonstrate their products and answer questions from potential customers.
d.
Salespeople generate leads from noncompeting salespeople during trade shows.
e.
Salespeople use trade shows to contact sales leads unannounced with little, if any, information about the lead.
ANSWER:
c
26. In which of the following prospecting methods do salespeople ask potential customers to fill out information cards
indicating interest in their company or one of its products?
a.
Centers of influence
b.
Outbound telemarketing
c.
Trade shows
d.
Noncompeting salespeople
e.
Cold canvassing
ANSWER:
c
27. Karen is a salesperson for an automobile company. She believes that the best way for her potential and existing
customers to know about the products she is selling is by seeing those products in person and seeing exactly what the
products can and cannot do. Which of the following would probably be her best method of prospecting?
a.
Advertising inquiries
b.
Inbound telemarketing
c.
Trade shows
d.
Cold calling
e.
Directories
ANSWER:
c
28. The focal point of a prospecting plan should be:
a.
the goal stating the number of qualified prospects to be generated.
b.
a regular daily schedule for conducting prospecting activities.
c.
generating results that can be tracked from using different prospecting methods.
d.
developing a base of comprehensive knowledge and understanding.
e.
to chronologically archive outcomes from any contacts with the prospect.
ANSWER:
a
29. _____ is one of the foundations for effective prospecting and reminds salespeople to establish a regular daily schedule
for conducting prospecting activities.
a.
Keeping records
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b.
Staying positive
c.
Allocating time
d.
Evaluating
e.
Setting goals
ANSWER:
c
30. Margaret, a salesperson, always wins the best salesperson award in her company. Margaret's success is due to a
strategic prospecting plan, which helps ensure that:
a.
she stays up-to-date with the activities of all the competitors of her company.
b.
she is friends with the other salespeople in her company.
c.
she has the best verbal communication skills in her company.
d.
she sets aside five hours every week for prospecting.
e.
she always contacts her prospects unannounced with a telephone call.
ANSWER:
d
31. In a strategic prospecting plan, which of the following is a reason for salespeople to set aside time for prospecting?
a.
It helps prevent other activities from creeping in and displacing prospecting activities.
b.
It helps develop confidence by knowing their products.
c.
It helps establish quotas for acquiring new prospects.
d.
It helps in tracking the results of different prospecting methods.
e.
It helps in comparing the results obtained from using different prospecting methods.
ANSWER:
a
32. A _____ is a part of the strategic prospecting plan that records comprehensive information about a prospect, traces the
prospecting methods used, and chronologically archives outcomes from any contacts with the prospect.
a.
tracking system
b.
directory
c.
trade show
d.
seminar
e.
referral
ANSWER:
a
33. Which of the following states the significance of evaluation in a prospecting plan?
a.
Evaluation allows salespeople to record comprehensive information about a prospect, trace the prospecting
methods used, and chronologically archive outcomes from any contacts with the prospect.
b.
Evaluation makes it easier to track results from using different prospecting methods.
c.
Continuous evaluation can be done to establish a regular daily schedule for conducting prospecting activities.
d.
Continuous evaluation should be employed to ensure that a salesperson is meeting prospecting goals and using
the most effective prospecting methods.
e.
Evaluation helps develop a base of comprehensive knowledge and understanding, and is the key to believing
in one's self.
ANSWER:
d
34. Which of the following is the basic objective of sales prospecting?
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a.
To ensure that salespeople are not demotivated by rejections
b.
To establish a regular daily schedule for conducting prospecting activities
c.
To make it easier to call prospects and set up appointments
d.
To make the sales process more enjoyable
e.
To provide salespeople with a list of prioritized sales prospects
ANSWER:
e
35. Which of the following should be done by a salesperson before meeting a prospect?
a.
He or she should call the prospect and state the price of the product or service offered.
b.
He or she should call the prospect and ask for an order.
c.
He or she should send the qualified prospect a sales letter.
d.
He or she should gather basic information about the prospect.
e.
He or she should request a referral or letter of introduction from the qualified prospect
ANSWER:
d
36. Jane, a salesperson, has recently joined a company and is looking for information about prospective buyers of her
company's products. Which of the following is considered basic information that Jane would need to obtain about the
prospective buyers before meeting them?
a.
Their motivation for buying
b.
The competitors involved
c.
Their hobbies and interests
d.
The financial resources available
e.
Their annual income
ANSWER:
c
37. Which of the following is considered specific information about the selling situation?
a.
The hobbies and interests of a prospect
b.
The communication style of the prospect
c.
The educational and work background of the prospect
d.
The contact information of the prospect
e.
The available budget of the prospect
ANSWER:
e
38. Which of the following is considered specific information about the selling situation?
a.
A prospect's educational background
b.
A prospect's community involvement
c.
A prospect's motivation for buying
d.
A prospect's name and title
e.
A prospect's organizational involvement
ANSWER:
c
39. Zoey is a salesperson who is meeting a prospect after a successful cold call. Zoey has collected most of the basic
information about her prospect already. The best way for her to now gather additional information about her prospect is:
a.
by questioning the prospect during sales dialogues.
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b.
by using social media websites as a source of information.
c.
by learning about the products and services offered by the prospect's company.
d.
by searching for information online and in print directories.
e.
by developing and following a strategic prospecting plan.
ANSWER:
a
40. Which of the following technologies is a valuable tool for salespeople in the collection of information about prospects
prior to the first meeting?
a.
A customer relationship management system
b.
A content management system
c.
An application programming interface
d.
A computer-integrated design system
e.
An enterprise resource planning system
ANSWER:
a
Completion
41. A(n) _________ is a salesperson's act of searching out, collecting, and analyzing information to determine the
likelihood of the lead being a good candidate for making a sale.
ANSWER:
qualifying sales lead
42. A(n) _________ is 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.
ANSWER:
sales prospect
43. The characteristics of a firm's best customers or the perfect customer are referred to as the _________.
ANSWER:
ideal customer profile
44. Information about customers in a company database is referred to as _________.
ANSWER:
company records
45. _________ is a source of locating prospects whereby the prospect calls the company to get information.
ANSWER:
Inbound telemarketing
46. _________ is a source of locating prospects whereby the salesperson contacts the prospect by telephone.
ANSWER:
Outbound telemarketing
47. _________ are electronic or print sources that provide contact and other information about many different companies
or individuals.
ANSWER:
Directories
48. A salesperson's plan for gathering qualified prospects is called a(n) _________.
ANSWER:
strategic prospecting plan
49. A(n) _________ is a part of the strategic prospecting plan that can be as low-tech as a set of 3 X 5-inch note cards or
employ one of the many computerized and online contact management or customer relationship management software
applications.
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ANSWER:
tracking system
50. Although much of the basic information about the prospect can normally be gathered prior to meeting with a prospect,
much of the information about the _________ will be obtained from the prospect during sales dialogues.
ANSWER:
selling situation
