SELL 2nd Canadian Edition By Raymound - Test Bank

SELL 2nd Canadian Edition By Raymound – Test Bank

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Sample Questions Are Posted Below

Chapter 5 Strategic Prospecting and Preparing for Sales
Dialogue
MULTICHOICE
1. Which statement provides the best rationale for prospecting for new business for most
salespeople?
(A) to stay ahead of the competition
(B) to keep sharp by practising selling skills
(C) to replace lost customers and achieve sales growth targets
(D) to keep productivity high by filling in the time between sales calls on existing customers
Answer : (C)
2. Which statement provides the best rationale of allocating time for prospecting for new
business on a consistent basis?
(A) The process of converting prospects to customers often takes much longer than
expected.
(B) Selling skills take a long time to develop but are lost quickly during periods of inactivity.
(C) Achieving sales growth targets is a priority for most salespeople all year long.
(D) Prospecting for new business can be very time-consuming, so it is better to leave it until
times of inactivity.
Answer : (A)
3. According to the textbook, why do salespeople often find it difficult to allocate time for
prospecting?
(A) They are too busy looking after existing clients.
(B) They see prospecting as an activity with a low probability of success.
(C) Most sales managers put a low priority on activities related to prospecting for new
business.
(D) They fear the rejection that comes with prospecting for new business.
Answer : (D)
4. Simon is a salesperson for XYZ Corporation. His territory includes 50 established
accounts, which he calls on regularly. Although Simon is supposed to allocate some time to
prospecting on a regular basis, he would rather call on his existing accounts. According to
the textbook, why is Simon most likely to resist prospecting?
(A) He is afraid of rejection.
(B) He doesn’t believe it’s necessary.
(C) He would rather use his spare time for paperwork.
(D) His established accounts are too important to ignore.
Answer : (A)
5. What is the process designed to identify, qualify, and prioritize sales opportunities from
new customers or additional business from existing customers?
(A) sales blocking
(B) strategic prospecting
(C) lead determination
(D) new revenue maximization
Answer : (B)
6. According to the textbook, how is the strategic prospecting process often viewed?
(A) as a black box
(B) as a sales funnel
(C) as a flowchart
(D) as a tree diagram
Answer : (B)
7. Which statement best describes the basic purpose of strategic prospecting?
(A) to help salespeople determine the best sales opportunities in the most efficient way
(B) to improve the process of generating leads
(C) to streamline the process of identifying, qualifying, and prioritizing sales opportunities
(D) to improve the success rate of converting prospects into customers
Answer : (A)
8. Why is the strategic prospecting process often viewed as a sales funnel?
(A) The beginning of the process is very busy with a great deal of slippage.
(B) The funnel shape illustrates the importance of flow-through in prospecting activities.
(C) The conversion of potential sales opportunities into profitable transactions generates a
great deal of waste material that must be carried away.
(D) The process reduces a large number of potential sales opportunities into a smaller
number of successful sales interactions.
Answer : (D)
9. What is the term for organizations or individuals who might possibly purchase the
product or service a salesperson offers?
(A) strategic potentials
(B) sales leads (suspects)
(C) sales prospects
(D) target markets
Answer : (B)
10. With respect to the strategic prospecting process, what is the difference between a sales
lead (suspect) and a sales prospect?
(A) The sales prospect is currently buying from a competitor.
(B) The salesperson has qualified the sales lead to determine potential.
(C) The sales prospect has purchased similar goods from a competitor in the past.
(D) The sales lead fits the ideal customer profile of the target market.
Answer : (B)
11. From a sales manager’s perspective, what is the essential difference between a sales
lead (suspect) and a sales prospect?
(A) The sales prospect is currently buying from a competitor and therefore has a need.
(B) The sales lead has more potential to become an actual customer.
(C) The sales prospect has a higher probability of becoming an actual customer.
(D) The sales lead fits the ideal customer profile of the target market.
Answer : (C)
12. What is the term for the process of searching out, collecting, and analyzing information
to determine the likelihood of a sales lead being a good candidate for making a sale?
(A) preselection by potential
(B) sales prospecting
(C) qualifying sales leads
(D) narrowing the field
Answer : (C)
13. What is the term for 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?
(A) a customer
(B) a sales prospect
(C) a target customer
(D) a sales lead (suspect)
Answer : (B)
14. What is the term for a summary of the characteristics of a firm’s best customers or the
perfect customer?
(A) an ideal customer profile
(B) a certified sales lead
(C) a customer purchasing criteria
(D) a hot prospect list
Answer : (A)
15. Huda is a salesperson for ABC Company and has had trouble prospecting effectively.
Approximately 70 percent of the leads she contacts do not have any influence in the
purchase decision process. What is Huda most likely having trouble with?
(A) communicating with her leads
(B) selling her product to her leads
(C) qualifying her leads
(D) responding to her leads
Answer : (C)
16. Which sales prospecting method involves calling on sales leads unannounced and using
referrals and introductions?
(A) cold canvassing
(B) networking
(C) company sources
(D) published sources
Answer : (A)
17. Of the sales prospecting methods listed below, which is likely to be the least efficient in
terms of finding sales leads with a high probability of becoming customers?
(A) cold calling
(B) networking
(C) company sources
(D) published sources
Answer : (A)
18. What could a salesperson using the cold calling method of sales prospecting do to
improve his or her efficiency in finding sales leads with a high probability of becoming
customers?
(A) prequalify the suspect through telephone contact
(B) use referrals or introductions
(C) use company sources
(D) use published sources
Answer : (B)
19. What is the term for the prospecting method in which a salesperson’s customers or
prospects give him or her leads?
(A) the introduction method
(B) the cold calling method
(C) the direct method
(D) the referral method
Answer : (D)
20. Damien is a salesperson who relies on his current customers to help him identify
potential new customers. Which method for lead generation is Damien relying on?
(A) cold calling
(B) referral
(C) company source
(D) customer source initiative
Answer : (B)
21. 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?
(A) the introduction method
(B) the cold canvassing method
(C) the bird-dog method
(D) the referral method
Answer : (A)
22. Which sales prospecting method uses centres of influence, noncompeting salespeople,
and online resources such as social media?
(A) cold canvassing
(B) networking
(C) company sources
(D) published sources
Answer : (B)
23. In which prospecting method do salespeople seek to obtain leads from thought leaders?
(A) the introduction method
(B) the known entity method
(C) the centres of influence method
(D) the referrals method
Answer : (C)
24. 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?
(A) company records
(B) a centre of influence
(C) a noncompeting salesperson
(D) a trade show
Answer : (C)
25. According to the textbook, which statement best summarizes the effectiveness of social
media as a sales prospecting method?
(A) Social media has proven to be more effective than cold canvassing but less effective than
traditional networking options.
(B) Due to its popularity, social media has the potential to replace most traditional sources
of networking for salespeople.
(C) Most companies limit salesperson access to social media to keep them focused and
productive.
(D) Social media is a communication tool and therefore is better suited for relationship
management than as a sales prospecting tool.
Answer : (D)
26. Which sales prospecting method uses company records, advertising and telephone
inquiries, trade shows, and seminars?
(A) cold canvassing
(B) networking
(C) company sources
(D) government sources
Answer : (C)
27. Which form of locating prospects brings the prospect to the salesperson?
(A) centres of influence
(B) cold canvassing
(C) trade shows
(D) noncompeting salespeople
Answer : (C)
28. What has replaced cold calling as a major source of new customers?
(A) networking
(B) Web-based marketing
(C) trade shows
(D) advertising
Answer : (B)
29. What method of locating sales prospects involves the prospect calling the company to
get information?
(A) permission-based marketing
(B) networking
(C) inbound telemarketing
(D) cold canvassing
Answer : (C)
30. What method of locating sales prospects involves a salesperson or another company
representative calling the prospect by telephone?
(A) outbound telemarketing
(B) networking
(C) commercial data-mining
(D) cold canvassing
Answer : (A)
31. Why can inviting prospective customers to a seminar create a good source of qualified
prospects for a salesperson?
(A) A seminar can provide information that creates value for those customers who choose to
attend.
(B) Seminars are more effective than networking due to the larger numbers of people
reached at one time.
(C) Seminars can be combined with an outbound telemarketing program to create a low-
pressure sales environment.
(D) Seminars are similar to cold canvassing methods except when attempting to sell higher-
value goods or services.
Answer : (A)
32. Which sales prospecting method uses business and municipal directories and
commercial lead lists?
(A) cold canvassing
(B) networking
(C) company sources
(D) published sources
Answer : (D)
33. 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?
(A) Published sources such as directories and commercial lead lists are more expensive and
therefore less efficient to use as a prospecting method than cold canvassing.
(B) Since they are freely available to anyone, published sources are not very useful to
salespeople as a method of locating prospects.
(C) The increased popularity of the Internet has reduced the usefulness of published sources
such as directories and commercial lead lists for prospecting.
(D) Although accuracy can sometimes be a problem, published sources such as directories
and commercial lead lists can provide salespeople with a wealth of information.
Answer : (D)
34. What is the first step in a strategic prospecting plan?=
(A) set goals for prospecting activities
(B) allocate specific times for prospecting activities
(C) track results of prospecting activities
(D) evaluate the effectiveness of prospecting activities
Answer : (A)
35. What is the second step of a strategic prospecting plan?
(A) set goals for prospecting activities
(B) allocate specific times for prospecting activities
(C) track results of prospecting activities
(D) evaluate the effectiveness of prospecting activities
Answer : (B)
36. According to the textbook, what is the primary reason for a salesperson to create and
use a strategic prospecting plan?
(A) to be as productive as possible in the given time
(B) to shows a higher level of professionalism
(C) to remaining competitive within your particular industry
(D) to have a more reactive approach to managing sales
Answer : (A)
37. 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?
(A) a list of leads
(B) a list of qualified prospects
(C) a strategic prospecting plan
(D) a territory plan
Answer : (C)
38. 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?
(A) administrative follow-up
(B) tracking system
(C) time allocation mechanism
(D) performance feedback system
Answer : (B)
39. What is the third step of a strategic prospecting plan?
(A) set goals for prospecting activities
(B) allocate specific times for prospecting activities
(C) track results of prospecting activities
(D) evaluate the effectiveness of prospecting activities
Answer : (C)
40. Why is a tracking system important to prospecting?
(A) The tracking system allows salespeople to track the progress of their existing customers.
(B) The tracking system allows salespeople to limit the time they spend prospecting.
(C) The tracking system allows salespeople to improve their image with management.
(D) The tracking system allows salespeople to monitor the effectiveness of their various
prospecting methods
Answer : (D)
41. Natalie has been a salesperson for the past two years. Although prospecting is a big part
of her job, she is not sure how well her prospecting methods are working. What should she
develop?
(A) a referral list
(B) a tracking system
(C) a list of lead generation methods
(D) a list of prospecting methods
Answer : (B)
42. Which statement about evaluating prospecting activities is most accurate?
(A) Salespeople should evaluate their prospecting activities once a year.
(B) Salespeople should evaluate their prospecting activities twice a year.
(C) Salespeople should have their sales managers evaluate their prospecting activities twice
a year.
(D) Salespeople should evaluate their prospecting activities on a continuous basis.
Answer : (D)
43. According to the textbook, once potential customers have been identified, what should a
salesperson do next?
(A) develop a prospecting strategy
(B) call on the qualified prospect
(C) send the qualified prospect a sales letter
(D) begin gathering precall information
Answer : (D)
44. What is the fourth step of a strategic prospecting plan?
(A) set goals for prospecting activities
(B) allocate specific times for prospecting activities
(C) track results of prospecting activities
(D) evaluate the effectiveness of prospecting activities
Answer : (D)
45. What is the purpose of gathering precall information?
(A) to be used for the salesperson to decide whether to make the call or not
(B) to be used to develop rapport with the prospect and eventually tailor the sales
presentation to fit the buyer’s needs
(C) to be used to satisfy the legal requirements of the Freedom of Information Act of 1996
(D) to be used to determine the best way to approach the prospect
Answer : (B)
46. Gina, a salesperson for ABC Corp., spends a lot of time interviewing her prospects so
she can learn their names, interests, and job responsibilities. What should Gina probably
spend more time doing?
(A) talking about her product and company
(B) obtaining leads from better sources
(C) talking about herself
(D) obtaining precall information on the prospect
Answer : (D)
47. Craig is a salesperson for an industrial equipment company. He 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. What does Craig need to work on?
(A) determining other purchase decision influencers
(B) his record keeping
(C) improving his questioning skills
(D) his cold canvassing ability
Answer : (A)
48. Suppose you are a salesperson working for a manufacturer of business machinery. While
gathering precall information you learn that a prospect you are preparing to call on is
actually a member of a buying team. Which statement best represents what you should do
next?
(A) Identify the decision maker on the buying team and focus all of your selling efforts on
that individual.
(B) Identify the purchasing agent on the buying team and focus your selling efforts on that
individual.
(C) Identify the role of each member of the buying team and the amount of influence each
exerts.
(D) Create a written sales proposal and give it to your contact so that he or she can pass it
out to the other buying team members.
Answer : (C)
TRUEFALSE
49. For most salespeople, achieving sales growth objectives requires finding a balance
between generating additional business from existing customers and finding new
customers.
(A) True
(B) False
Answer : (A)
50. According to the textbook, the main reason that salespeople dislike prospecting is that it
is too time-consuming in comparison to the results generated.
(A) True
(B) False
Answer : (B)
51. Good salespeople do not need to prospect, as customers come to them.
(A) True
(B) False
Answer : (B)
52. Salespeople should spend 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 : (A)
53. Getting past the gatekeeper in an organization to make contact with decision makers is
one of a salesperson’s greatest challenges with prospecting.
(A) True
(B) False
Answer : (A)
54. Prospects may be reluctant to see a salesperson if they have never heard of the
salesperson’s firm.
(A) True
(B) False
Answer : (A)
55. In general, most prospects are eager to meet with salespeople.
(A) True
(B) False
Answer : (B)
56. The basic purpose of strategic prospecting is to identify leads.
(A) True
(B) False
Answer : (B)
57. The basic purpose of strategic prospecting is to help salespeople determine the best
sales opportunities in the most efficient way.
(A) True
(B) False
Answer : (A)
58. The strategic prospecting process is often illustrated as an inverted closed-end funnel.
(A) True
(B) False
Answer : (B)
59. Highly productive salespeople have much narrower sales funnel bottoms than less
productive salespeople.
(A) True
(B) False
Answer : (B)
60. With respect to sales prospecting, the only difference between a “suspect” and a
prospect is how much money the person has available to spend on the product or service in
consideration.
(A) True
(B) False
Answer : (B)
61. Organizations or individuals who might possibly purchase the product or service a
salesperson offers are known as sales prospects.
(A) True
(B) False
Answer : (B)
62. The characteristics of a firm’s best customers, or the perfect customer, are known as the
ideal customer profile.
(A) True
(B) False
Answer : (A)
63. The process of searching out, collecting, and analyzing information to determine the
likelihood of a sales lead being a good candidate for making a sale is known as qualifying.
(A) True
(B) False
Answer : (A)
64. In comparison to other prospecting methods, cold calling is highly inefficient.
(A) True
(B) False
Answer : (A)
65. Using referrals and introductions does not improve the efficiency of cold canvassing.
(A) True
(B) False
Answer : (B)
66. Networking with salespeople from noncompeting firms can be a productive method of
prospecting for new business.
(A) True
(B) False
Answer : (A)
67. The advent of electronic networking has made prospecting for new business even more
difficult.
(A) True
(B) False
Answer : (B)
68. According to the textbook, social media such as Facebook and MySpace have proven to
be excellent prospecting tools for salespeople.
(A) True
(B) False
Answer : (B)
69. Most salespeople should ignore looking at company records as a sales prospecting
method due to its low efficiency in generating new business.
(A) True
(B) False
Answer : (B)
70. Advertising inquiries are like inbound telemarketing in that the lead does some degree
of self-qualifying.
(A) True
(B) False
Answer : (A)
71. Inquiries as a result of advertising are a poor source of customer prospects due to self-
selection.
(A) True
(B) False
Answer : (B)
72. Many organizations use both inbound and outbound telemarketing to generate leads.
(A) True
(B) False
Answer : (A)
73. Outbound telemarketing is a form of cold calling.
(A) True
(B) False
Answer : (A)
74. One of the key advantages of trade shows is the generation of good leads.
(A) True
(B) False
Answer : (A)
75. Conducting product or service seminars can be a good source of customer prospects
because those who attend have chosen to be there.
(A) True
(B) False
Answer : (A)
76. Published sources are rarely used for sales prospecting activities due to their inherent
inaccuracies.
(A) True
(B) False
Answer : (B)
77. The first step in developing a strategic prospecting plan is to allocate time for
prospecting activities.
(A) True
(B) False
Answer : (B)
78. The heart of a strategic prospecting plan is a tracking system that captures the
information gathered as a result of prospecting activities.
(A) True
(B) False
Answer : (A)
79. Due to the time involved, the strategic prospecting plan should not be evaluated on any
more than an annual basis.
(A) True
(B) False
Answer : (B)
80. The more the salesperson knows about his or her qualified prospects, the better the
chance he or she has of developing successful relationships with those prospects.
(A) True
(B) False
Answer : (A)
81. Once a prospect has been identified, a salesperson should attempt to make contact as
soon as possible so that the lead does not go cold.
(A) True
(B) False
Answer : (B)
82. With the exception of cold calling, a salesperson should always know the contact’s name
before making the sales call.
(A) True
(B) False
Answer : (A)
83. The first stage of obtaining precall information focuses on the contact.
(A) True
(B) False
Answer : (A)
84. The person who controls the flow of information between the salesperson and the
contact is called the gatekeeper.
(A) True
(B) False
Answer : (A)
85. Salespeople should be nice to gatekeepers because they can be good sources for
obtaining critical precall confirmation.
(A) True
(B) False
Answer : (A)
86. Although the salesperson will be dealing with the contact, it is extremely important for
the salesperson to gain some information on the contact’s company prior to making the
sales call.
(A) True
(B) False
Answer : (A)
87. While it is important to gain information on the prospect, it is relatively unimportant to
gain any information on the prospect’s organization prior to initiating sales dialogue.
(A) True
(B) False
Answer : (B)
88. The use of social media is considered a valuable information source for salespeople.
(A) True
(B) False
Answer : (A)
89. Facebook, LinkedIn, and blogs offer very little useful information to sales people.
(A) True
(B) False
Answer : (B)
90. The use of social media as a valuable information source has been increasing in recent
years .
(A) True
(B) False
Answer : (A)
91. Information collected about prospects prior to the meeting and throughout the trust-
based sales process should be accumulated and updated on a regular basis.
(A) True
(B) False
Answer : (A)
92. Even if that person is a member of a buying team, the contact (whom the salesperson is
calling on) always has the most influence over the buying decision.
(A) True
(B) False
Answer : (B)
93. When dealing with buying teams, the salesperson should attempt to identify the amount
of influence each member exerts.
(A) True
(B) False
Answer : (A)
94. Even when dealing with a buying team, the salesperson should focus his or her attention
on one person to improve communication.
(A) True
(B) False
Answer : (B)
95. As the complexity of the purchase decision increases, the probability of there being
more than one person influencing the decision increases.
(A) True
(B) False
Answer : (A)
96. CRM is an acronym for Current Relationship Management.
(A) True
(B) False
Answer : (B)