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Chapter 06 Prospecting Answer Key
True / False Questions
1.
Prospecting is the process of making a successful sale to a customer.
2.
If a salesperson determines that an individual is a good candidate for making a purchase,
the individual is called a lead.
3.
John, a salesperson, can consider Harriet to be a lead because he is certain that she will
buy his company's products.
4.
Systems integrators usually assume complete responsibility for a project from its
beginning to follow-up servicing.
5.
A 17-year-old high school student in the United States is not a prospect for a salesperson
selling alcoholic beverages because the student is not eligible to buy alcohol.
6.
An exclusive sales territory is managed by corporate executives, while a house account
includes only certain prospects in an area.
7.
Regardless of what product a salesperson sells, prospecting techniques are basically the
same.
8.
Referrals by customers in some cultures, like Japan, are less important and insignificant
than they are in North America.
9.
Salespeople use seminars and online webinars to finalize deals.
10.
Satisfied customers, particularly those who are truly partners with the seller, are the most
effective sources for leads.
11.
The idea that existing customers are usually prospects for additional sales is the basis of a
method of prospecting called the endless-chain method.
12.
The sales strategy of getting at least one additional lead from each person interviewed is
called selling deeper.
13.
It is usually possible for a person to be a center of influence for a salesperson and never
actually buy from the salesperson.
14.
When using social media to find prospects, salespeople trying to apply a pull strategy
should use tactics like seller blogs, wikis, and video blogs.
15.
Extranets are external databases that salespeople use for data mining purposes.
16.
Trade shows last usually longer than a month.
17.
Trade shows are places where suppliers have sales offices and buyers from resellers visit
to purchase merchandise.
18.
In merchandise markets, sellers are the manufacturers or distributors, and they sell only to
resellers, not to the public.
19.
In selling, networking simply means establishing connections to other people and then
using those networks to generate leads, gather information, generate sales, and so on.
20.
Instead of inviting a special group of prospects, seminars should be open to the public and
discuss topics of general interest.
21.
A webinar is a form of cold calling.
22.
The North American Industry Classification System (NAICS) code is useful for salespeople
researching using secondary sources.
23.
Cold calling is usually considered rude by many purchasing agents and other professionals
today.
24.
Salespeople should refrain from showing their expertise about a topic by writing blogs
because blogs are an unacceptable way to reach professionals.
25.
Spotters are individuals who conduct business purchases on behalf of customers for a
fixed fee.
26.
Salespeople can overcome their reluctance to call prospects by engaging in sales training
and role-playing activities to improve their prospecting skills.
27.
In a lead management system, salespeople are usually excluded from the process of
qualifying leads.
28.
Every lead that is generated by a firm's marketing department is usually followed up by
salespeople.
29.
Lead prequalification helps salespeople use their time wisely.
30.
The relative value of each lead that is qualified is analyzed by a lead management system.
Multiple Choice Questions
31.
Veronica is a new salesperson at an insurance company. Her primary task is to locate
potential buyers of insurance products in a particular area. Veronica's activity is known
as:
32.
The process of locating potential customers for a good or service is termed _____.
33.
The process of prospecting usually begins with locating a _____.
34.
For which of the following salespeople would prospecting be most important?
35.
Robina received a memo with the name of a person who wrote to her company inquiring
about the firm's radiology equipment. The person who made the inquiry is best classified
as a:
36.
The process of determining if a lead is indeed a prospect is referred to as:
37.
Which of the following statements about prospecting is true?
38.
Everlast Tire Company has hired a consulting agency, Waddell and Hartley, to acquire the
equipment needed to automate its second factory. Waddell and Hartley will be responsible
for purchasing all the goods and services necessary for the plant, making sure that they
are compatible, and turning them over to Everlast, for a facility that is the center of
operations for the company. Waddell and Hartley would be called a(n) _____.
39.
Mason is the head of an automobile firm. The firm has two manufacturing units, one
located in a city and the other located in a town. The manufacturing unit located in the
town requires maintenance, repair, and operations (MRO) supplies to enable a smooth
running of the manufacturing process. Mason delegates this task to an external consultant
who buys necessary goods and services on behalf of the firm. In this case, the external
consultant acts as a:
40.
When the question, "Can the lead be approached favorably?" is asked to a salesperson, it
refers to whether:
41.
Mark and Vincent are efficient salespeople working for Nikelin Inc. They are field
salespeople who always generate the highest sales revenue for their teams. Mark is
assigned to conduct sales specifically to prospects in New York, while Vincent is assigned
to conduct sales specifically to prospects in Los Angeles. Jason, another salesperson at
Nikelin Inc., handles only large customers in both New York and Los Angeles. Which of the
following statements is most likely true about this scenario?
42.
Wallace is a salesperson in the Nebraska Territory for a firm selling kitchen appliances to
mobile home manufacturers. At a school reunion, an old friend approaches him and says,
"What a coincidence! I'm the director of purchasing for Bilt-Tite Mobile Homes in Franklin,
Georgia. Why don't you contact me next week? Let's see if we can do business."
Unfortunately, Wallace cannot do business with his friend because:
43.
To qualify as a prospect, it is imperative that a lead have all of the following
characteristics EXCEPT:
44.
When a customer account is specifically assigned to a sales executive rather than to a
salesperson who handles the territory containing that customer account, that customer
account is usually known as a _____.
45.
When a salesperson can only sell to prospects located within a certain geographical
location, the salesperson is said to be managing sales for a(n) _____.
46.
When a large chain of stores such as Home Depot or Kmart buys items centrally from its
home office, selling companies often designate it as a _____ account, which means that its
needs are handled by their corporate offices and local salespeople need not attempt to
solicit business from any of its branches that come within their territory.
47.
In the case of insight selling, salespeople target those prospects who:
48.
Kenneth regularly buys from a preferred seller. He always gives positive feedback to the
reseller and also convinces his relatives and friends to buy goods from the seller.
According to the seller, Kenneth is most likely a(n):
49.
Judy is a local sales representative for an insurance company. The economy is stagnant
and few new residents are moving into her territory. Consequently, Judy decides to assess
the potential for additional sales among her existing customers. Judy is planning to use
a(n) _____ strategy.
50.
Tom has been invited to spend the weekend at Hilton Head by his stockbroker, Nathan. He
asks Tom to bring along a few of his professional friends as well. The stockbroker is
organizing a:
51.
Jonathan, a salesperson, sells laptops and desktop computers. Kevin regularly purchases
these goods from Jonathan. Jonathan understands Kevin's buying behavior and makes
additional sales to Kevin. Even though Kevin does not actually require these additional
goods, he ends up buying them because he has always been satisfied with Jonathan's
products. This is an example of:
52.
A salesperson sells a mobile phone to Karen. Karen tells the salesperson that her friend
Jenna is also interested in buying a similar mobile phone. The name of Jenna provided by
Karen would be treated by the salesperson as a:
53.
Veronica buys a laptop from a local salesperson, but it turns out to be defective. She tells
her friends and relatives about the poor performance of the laptop. From the perspective
of the salesperson, this is an example of:
54.
As Sandra concluded her sales interview with Burt, she said, "I'm pleased you see the
value of this new software for managing your inventory. Can you suggest some other small
business owners who might like to see it?" Sandra is using the _____ method of
prospecting.
55.
Wallace represents a manufacturer of hearing aids. Lisa, an audiologist to whom Wallace
sold one of his company's new Max-Ear 2001, is so pleased with its performance that she
has written a testimonial and listed some other audiologists whom Wallace may approach
for a purchase. This is an example of the _____ method used in prospecting.
56.
Ruth used her personal connections with a manager at Hampton Industries, a
manufacturer of decorative paper items, to become the first salesperson in her firm to call
on a company that was using recycled paper to make posters. Ruth used her _____
abilities to make this sales call possible.
57.
Roger is a sales representative for a farm equipment supplier. Almost twice a month, he
visits Frank Copeland's farm. Copeland has not bought a new piece of equipment from
Roger's firm in the last 20 years, but he always seems to know who is looking to buy
Roger's goods. Copeland likes to gossip and shares his information with Roger freely.
Frank Copeland is a good example of a:
