Test Bank for Selling: Building Partnerships 10th Edition

Test Bank for Selling: Building Partnerships 10th

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Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Prospecting is the process of making a successful sale to a customer.

⊚ true
⊚ false

2) If a salesperson determines that an individual is a good candidate for making a purchase,

the individual is called a lead.

⊚ true
⊚ false

3) John, a salesperson, can consider Harriet to be a lead because he is certain that she will
buy his company's products.

⊚ true
⊚ false

4) Systems integrators usually assume complete responsibility for a project from its
beginning to follow-up servicing.

⊚ true
⊚ false

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.

⊚ true
⊚ false

6) An exclusive sales territory is managed by corporate executives, while a house account

includes only certain prospects in an area.

⊚ true
⊚ false

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7) Regardless of what product a salesperson sells, prospecting techniques are basically the
same.

⊚ true
⊚ false

8) Referrals by customers in some cultures, like Japan, are less important and insignificant
than they are in North America.

⊚ true
⊚ false

9) Salespeople use seminars and online webinars to finalize deals.

⊚ true
⊚ false

10) Satisfied customers, particularly those who are truly partners with the seller, are the most
effective sources for leads.

⊚ true
⊚ false

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.

⊚ true
⊚ false

12) The sales strategy of getting at least one additional lead from each person interviewed is
called selling deeper.

⊚ true
⊚ false

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13) It is usually possible for a person to be a center of influence for a salesperson and never
actually buy from the salesperson.

⊚ true
⊚ false

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.

⊚ true
⊚ false

15) Extranets are external databases that salespeople use for data mining purposes.

⊚ true
⊚ false

16) Trade shows last usually longer than a month.

⊚ true
⊚ false

17) Trade shows are places where suppliers have sales offices and buyers from resellers visit
to purchase merchandise.

⊚ true
⊚ false

18) In merchandise markets, sellers are the manufacturers or distributors, and they sell only
to resellers, not to the public.

⊚ true
⊚ false

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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.

⊚ true
⊚ false

20) Instead of inviting a special group of prospects, seminars should be open to the public
and discuss topics of general interest.

⊚ true
⊚ false

21) A webinar is a form of cold calling.

⊚ true
⊚ false

22) The North American Industry Classification System (NAICS) code is useful for
salespeople researching using secondary sources.

⊚ true
⊚ false

23) Cold calling is usually considered rude by many purchasing agents and other
professionals today.

⊚ true
⊚ false

24) Salespeople should refrain from showing their expertise about a topic by writing blogs
because blogs are an unacceptable way to reach professionals.

⊚ true
⊚ false

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25) Spotters are individuals who conduct business purchases on behalf of customers for a
fixed fee.

⊚ true
⊚ false

26) Salespeople can overcome their reluctance to call prospects by engaging in sales training
and role-playing activities to improve their prospecting skills.

⊚ true
⊚ false

27) In a lead management system, salespeople are usually excluded from the process of
qualifying leads.

⊚ true
⊚ false

28) Every lead that is generated by a firm's marketing department is usually followed up by
salespeople.

⊚ true
⊚ false

29) Lead prequalification helps salespeople use their time wisely.

⊚ true
⊚ false

30) The relative value of each lead that is qualified is analyzed by a lead management system.

⊚ true
⊚ false

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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
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:

A) prospecting.
B) feature dumping.
C) forecasting.
D) cross-selling.
E) seeding.

32) The process of locating potential customers for a good or service is termed _____.

A) adapting
B) investigating
C) prospecting
D) anticipating
E) inquiring

33) The process of prospecting usually begins with locating a _____.

A) change agent
B) bird dog
C) lead
D) gatekeeper
E) cross-seller

34) For which of the following salespeople would prospecting be most important?

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 A) A pharmaceutical sales rep selling heart medications
B) A real estate salesperson specializing in residential property
C) Jeff, a reseller of fighter aircrafts that has exclusive tie-ups with three of the world's
most powerful nations
D) An electric transformer salesperson working full time for Florida Power and Light
Co.
E) A GoodStart cereal salesperson whose territory is the city of Denver

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:

A) qualified prospect.
B) client.
C) lead.
D) prospect.
E) customer.

36) The process of determining if a lead is indeed a prospect is referred to as:

A) sourcing a lead.
B) brokering a deal.
C) precalling a customer.
D) qualifying a lead.
E) seeding a client.

37) Which of the following statements about prospecting is true?

A) The value of all qualified leads is identical.

B) Not all leads will qualify to be prospects.
C) It is unethical to use friends or relatives as sources for leads.
D) Personal observation cannot be used to find qualified leads.
E) The process of qualifying leads usually results in an increase in the number of leads.

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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) _____.

A) systems integrator
B) decentralized agency
C) functional supplier
D) industrial facilitator
E) industrial distributor

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:

A) change agent.
B) lessor.
C) referral lead.
D) systems integrator.
E) spotter.

40) When the question, "Can the lead be approached favorably?" is asked to a salesperson, it
refers to whether:

A) the salesperson is able to make a good first impression on most prospects he or she
approaches.
B) a prospect is merely a lead or is a qualified lead.
C) the salesperson has anything to offer to a prospect.
D) a prospect has the authority to take the deal forward.
E) a prospect is accessible to the salesperson.

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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?

A) Mark and Vincent use the circular routing method to conduct sales.
B) Mark and Vincent specialize in handling house accounts.
C) Jason specializes in handling lost-for-good accounts.
D) Nikelin Inc. employs Jason as a spotter for its firm.
E) Nikelin Inc. uses exclusive sales territory to assign work to Mark and Vincent.

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:

A) he does not need Wallace's products in his business.

B) companies discourage the use of personal contacts to generate leads.
C) his business is not located within Wallace's authorized territory.
D) Wallace will not be able to approach him favorably.
E) he does not have the authority to buy Wallace's appliances.

43) To qualify as a prospect, it is imperative that a lead have all of the following
characteristics EXCEPT:

A) charisma.
B) authority to buy.
C) ability to pay.
D) eligibility to buy.
E) a need.

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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 _____.

A) house account
B) lost-for-good account
C) turnover account
D) contra account
E) lead account

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) _____.

A) deep seller
B) exclusive sales territory
C) star client
D) national account
E) system integrator

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.

A) house
B) bounce-back
C) functional
D) limited
E) generational

47) In the case of insight selling, salespeople target those prospects who:

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 A) constitute their current and satisfied group of clients.
B) purchase stock centrally from the home office of their company.
C) demonstrate a sluggish approach toward making purchase decisions.
D) do not have a clear understanding of what they need and are in a state of flux.
E) require consultants or system integrators to begin their operations.

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):

A) bird dog.
B) jobber.
C) evangelist.
D) spotter.
E) poacher.

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.

A) endless-chain
B) data mining
C) selling deeper
D) cold calling
E) seeding

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:

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 A) trade fair.
B) referral event.
C) list and directory seminar.
D) spotter show.
E) canvassing event.

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:

A) backdoor selling.
B) selling deeper.
C) circular routing.
D) cloverleaf routing.
E) upselling.

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:

A) bird dog.
B) promoted lead.
C) qualified prospect.
D) referred lead.
E) listed evangelist.

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:

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 A) a lead disqualification.
B) a sneak attack.
C) browbeating.
D) a negative referral.
E) routing.

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.

A) selling center
B) endless-chain
C) lists and directories
D) spotter
E) canvassing

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.

A) endless-chain
B) spotter
C) insight selling
D) cold call
E) data mining

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.

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 A) seeding
B) zoning
C) canvassing
D) networking
E) telemarketing

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:

A) deep seller.
B) driver.
C) center of influence.
D) free canvasser.
E) spotter.

58) Which of the following statements about the use of the Internet as an effective lead
generator is true?

A) An advantage of Web-based promotions is their ability to attract numerous

international leads.
B) A disadvantage associated with using the Internet to generate leads is the high cost.
C) The Internet cannot transmit business information in different languages.
D) Extranets are created for general marketing efforts with no defined target markets.
E) Companies cannot use the Internet to build relationships with current customers.

59) Which of the following is a way that companies use the Internet to generate leads?

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 A) By developing an extranet
B) By using bulletin boards
C) By using newsgroups
D) By using e-mail messages
E) All of these

60) When Grant visited his supplier's Web site, he entered a code provided to him and went
to a customized site that listed his recent purchases, sale items, and complementary products he
might need. Grant was most likely visiting a(n) _____.

A) spam filter
B) extranet
C) blog
D) sponsor
E) intranet site

61) Often the primary function of salespeople at trade shows is to:

A) engage in cold calling.

B) study customers' responses to product features and benefits.
C) make customized and individualized presentations for all interested buyers.
D) make use of the Internet to popularize their products.
E) discover and qualify leads for future follow-up.

62) Identify an accurate statement about merchandise markets.

A) They involve the direct sale of goods to public.

B) They are places where defective goods received from customers are returned to the
manufacturers.
C) They are places where only old and unsold stock is sold at low prices.
D) They involve the sale of goods to retailers.
E) They are places that typically exclude a supplier's sale office.

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63) The primary purpose of webinars is to:

A) generate leads and provide information to prospective customers.

B) promote new products to all potential customers.
C) enhance cold-calling initiatives among a sales force.
D) expand databases for effective data mining.
E) reduce search engine costs and sell deeper.

64) Which of the following is an example of a secondary source of sales leads?

A) Industrial trade directories

B) Cold calls
C) Centers of influence
D) Buying communities
E) All of these

65) Which of the following statements about cold calling as a method of prospecting is true?

A) It is a relatively new technique.

B) It requires a large amount of information about a prospect before making the initial
contact.
C) Most purchasing agents prefer cold calling as a method of prospecting.
D) It can waste a lot of a salesperson's time.
E) All of these

66) Harold needs to sell a new drug to physicians and doctors in a locality. Without even
checking with the doctors and physicians, he visits the clinics and hospitals in the locality,
assuming that someone would be interested in buying the new drug. This is an example of:

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 A) cold calling.
B) deep selling.
C) lowballing.
D) ambush marketing.
E) routing.

67) In which of the following methods of prospecting is a salesperson likely to know the least
about the prospects called on before meeting them?

A) Networking
B) Endless-chain method
C) Center-of-influence method
D) Cold calling
E) Seeding

68) Vindurem Inc. has developed a software that would reduce the time taken by
manufacturers to identify suppliers of raw materials and distributors of finished goods for a
particular region. The company assigns its sales team to call on all potential customers that exist
within a two-mile radius of the city's shipping port to market this new software. The company
conducts this cold calling for a period of two days. This type of cold canvassing is called _____.

A) browbeating
B) lowballing
C) a blitz
D) leapfrog routing
E) a boomerang

69) The purpose of a blitz is to:

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 A) build partnerships between a selling firm and a buying firm.
B) increase a company's sales budget.
C) generate leads for a local salesperson through cold calling.
D) blanket a particular geographic area with sales letters.
E) improve a salesperson's ability to make custom sales presentations.

70) A _____ is an individual who, for a fee, will provide the names of leads for a salesperson.

A) cold caller
B) bird dog
C) hawker
D) jobber
E) prospect

71) Janice is a salesperson at a local computer store. She offers buyers a discount of $100 if
they provide her with the contact details of people who want to buy computers or computer-
related accessories. In this case, Janice wants these people to act as her:

A) leads.
B) spotters.
C) prospects.
D) gatekeepers.
E) evangelists.

72) Horizon Gifts is involved in corporate gifting solutions for large companies. Cal is a
long-time user of the service provided by Horizon Gifts, and he often suggests possible clients to
the service's sales representatives. Every time the lead Cal has provided actually results in a
purchase, Cal receives a free gift, which might be anything from a can of assorted nuts to a wool
muffler. Cal acts as a _____ for Horizon Gifts.

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 A) driver
B) spotter
C) gatekeeper
D) negotiator
E) mediator

73) Which of the following statements is true about bird dogs?

A) They are individuals who usually delegate the purchase decisions of a firm to an
external consultant for a fixed fee.
B) They are individuals who work for a salesperson and are usually able to find out if
someone is ready to make a purchase decision.
C) They are individuals who buy goods directly from a seller and resell the goods to a
reseller at a high price.
D) They are individuals who make purchase decisions on behalf of a consumer for a fee.
E) They are individuals who usually draft the sales pitch for the salespeople in a firm.

74) The opening paragraph of a sales letter should:

A) explain why the reader should buy a product.

B) grab the reader's attention.
C) ask the reader to take a specific action.
D) point out a deadline for action.
E) all of these.

75) After a sales letter gains a prospect's attention, the next thing it must do is:

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 A) explain why the reader should or should not take the desired action.
B) create curiosity about the product being sold.
C) ask the reader to take a specific action.
D) point out a deadline for action.
E) tell the reader when to expect a follow-up visit or a phone call from the sales
representative.

76) In the final paragraph of a sales letter, the writer should:

A) wait until the last sentence to demand money.

B) seek commitment to the desired course of action.
C) use expressions like "Why not buy now?" to give the reader the feeling of having a
choice.
D) remind the reader that the offer being made in the sales letter will never be canceled.
E) assume that the reader is intelligent enough to know what needs to be done and avoid
repeating information provided in the body of the letter.

77) Which of the following statements about the use of a postscript (PS) at the end of a sales
letter is true?

A) Postscripts right after the greeting are most effective.

B) Postscripts should be used to ask about a prospect's family or some other element of
his or her personal life.
C) Postscripts should be used to emphasize an important selling point.
D) Postscripts should not be used to highlight the requested action because the customer
may resent feeling pressurized by the sales team.
E) Postscripts should ideally provide details of the sales representative to be contacted
for queries.

78) Which of the following statements about lead qualification and management is true?

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 A) Firms often engage in prequalification of leads for their field sales forces.
B) A lead management system can be used to grade leads and establish a priority call
list.
C) The judicious use of technology makes lead qualification and management more
efficient and effective.
D) A lead qualification system can be used to offer a salesperson insight into a lead's
value.
E) All of these

79) Robert works in a marketing firm. He verifies the phone numbers and residential
addresses of all the leads generated by the firm before turning them over to the field salespeople
in his firm. Which of the following statements is true about the scenario?

A) Robert is zoning the leads.

B) Robert is engaging in a blitz.
C) Robert is engaging in cold calling.
D) Robert is engaging in benefit opening with the leads.
E) Robert is involved in prequalification of the leads.

80) A lead management system is used to:

A) generate leads for a blitz.

B) generate leads from existing customers only.
C) analyze the relative value of each lead.
D) create an endless chain for referrals.
E) exclusively target customers for telemarketing campaigns.

81) All of the following are reasons why a salesperson may suffer from call reluctance
EXCEPT:

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 A) a feeling of guilt for having a career in selling.
B) the need to meet a prospecting quota.
C) the concern about worst-case scenarios.
D) the concern about prospecting over the telephone.
E) the fear of losing friends.

82) A salesperson may suffer from call reluctance if he or she:

A) feels intimidated by the corporate title assigned to a prospect.

B) is overly concerned with being successful.
C) spends too much time preparing for a sales call.
D) feels guilty for having selected a career in sales.
E) experiences any or all of these.

83) Which of the following is an effective way in which a salesperson can overcome the
reluctance to call a prospect?

A) Engaging in analysis paralysis

B) Focusing on memorizing a canned presentation
C) Taking the failure to close a deal lightly
D) Questioning the validity of the excuses made to avoid sales calls
E) Keeping the worst-case scenario in mind in an attempt to motivate oneself

SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
84) What is the first step a salesperson takes when he or she is prospecting?

85) What is insight selling?

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86) What is the difference between an exclusive sales territory and a house account?

87) Veridcom Inc. is a leader in the creation of fingerprint identification software and
hardware for laptops. It sells the technology to businesses that want to protect any intellectual
property they have stored on their computers. After overseeing the installation of the system in
1,230 laptops for a large pharmaceutical company, the salesperson asked the company's vice
president of information if he knew of another company that could use the Veridcom
technology? The VP suggested Max Jordan, a business acquaintance of his who used laptops to
communicate with a large, scattered work force. What method of prospecting did the Veridcom
salesperson use, and what term would be used to describe Jordan?

88) Other than camaraderie and public service, why would a computer salesperson belong to
a Rotary Club, participate in the local Chamber of Commerce, and volunteer at the local library?

89) Gina has met a well-known and influential engineer who is willing to provide the names
of several leads. In the context of sales prospecting, what is this person called?

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90) What are merchandise markets?

91) What is a blitz?

92) What is data mining?

93) What part of their jobs do most salespeople dislike performing the most?

94) What do salespeople usually do to determine if their leads meet the criteria of a prospect?

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
95) What is the difference between a lead and a prospect?

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96) What determines a good prospect?

97) Where can salespeople find sales leads?

98) Discuss the following statement: "A satisfied customer is a salesperson's most profitable
resource."

99) James is a new salesperson. He is attending his first formal dinner party at the Chamber
of Commerce. He knows that he will meet a lot of people who can help him become a successful
salesperson, but he needs information on how to make the most of this networking opportunity.
What advice would you give him?

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100) Discuss the various ways in which companies are using the Internet to solicit leads.

101) How can a firm's marketing department act as a source of acquiring leads?

102) A company that has developed biometric identification systems—using fingerprint and
retina measurements—for PCs wants to hold a webinar for entertainment lawyers who are likely
to have sensitive information stored on their computers. The webinar will focus on the ways in
which one can protect office computers from hackers. What advice can you give the company as
it sets up the webinar?

103) A source for leads is selling lists containing individuals' mailing addresses and phone
numbers. You can even buy a list as specific as Catholic postal employees between the ages of
25 and 40. Even though lists are easy to obtain and use, many salespeople avoid using them.
Why?

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104) How can data mining assist sales prospecting?

105) Explain the significance of the prequalification process in a lead qualification system.

106) Why does a salesperson show reluctance to call a prospect?

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Answer Key

Test name: Chap6

1) FALSE
2) FALSE
3) FALSE
4) TRUE
5) TRUE
6) FALSE
7) FALSE
8) FALSE
9) FALSE
10) TRUE
11) FALSE
12) FALSE
13) TRUE
14) FALSE
15) FALSE
16) FALSE
17) FALSE
18) TRUE
19) TRUE
20) FALSE
21) FALSE
22) TRUE
23) TRUE
24) FALSE
25) FALSE
26) TRUE

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27) FALSE
28) FALSE
29) TRUE
30) TRUE
31) A
32) C
33) C
34) B
35) C
36) D
37) B
38) A
39) D
40) E
41) E
42) C
43) A
44) A
45) B
46) A
47) D
48) C
49) C
50) B
51) B
52) D
53) D
54) B
55) A
56) D

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57) C
58) A
59) E
60) B
61) E
62) D
63) A
64) A
65) D
66) A
67) D
68) C
69) C
70) B
71) B
72) B
73) B
74) B
75) A
76) B
77) C
78) E
79) E
80) C
81) B
82) E
83) D
84) Locating a lead is the first step in the process of prospecting. A lead
is a potential prospect that may or may not have what it takes to be a true
prospect.

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85) In insight selling, salespeople evaluate prospects who do not
necessarily have a clear understanding of what they need but are in a
state of flux and have been shown to be quite agile in making changes
(that is, they are able and willing to act quickly when a compelling case
is made to them). This approach also encourages salespeople to interact
with people in a buying firm who are skeptical rather than friendly
information providers and then coach these skeptical decision makers
how to buy the seller's solution. Why should one use this approach?
Proponents claim that buyers today already know a great deal about the
marketplace and understand many of their options and that salespeople
who follow the proposed approach are more successful in gaining
commitment.
86) The difference between an exclusive sales territory and a house
account is that an exclusive sales territory includes only certain
prospects in an area, while a house account is managed by corporate
executives and local salespeople cannot approach this account with deals
even if it comes within their territory.
87) The endless-chain method is being used in this scenario because the
sales representative attempted to get at least one additional lead from a
satisfied customer. The lead obtained in the process is called a referred
lead.
88) These are excellent ways of networking. Networking is the
utilization of personal relationships by connected and cooperating
individuals for the purpose of achieving goals.
89) This person is called the center of influence. In the center-of-
influence method, a salesperson cultivates a relationship with well-
known and influential people in the territory who are willing to supply
the names of leads.

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90) Merchandise markets are places where suppliers have sales offices
and buyers from resellers visit to purchase merchandise. The sellers are
the manufacturers or distributors, and they sell only to resellers, not to
the public.
91) A blitz is when a large group of salespeople attempts to call on all
the prospective businesses in a given geographic territory on a specified
day. It is a selective type of cold calling.
92) Data mining is using statistical methods or artificial intelligence to
learn more from existing databases.
93) Cold calling or canvassing is the task salespeople dislike performing
the most. Cold calling can waste a salesperson's time because many
companies have neither a need for the product nor the ability to pay for
it.
94) Salespeople usually use a lead qualification system to ensure that
their leads meet the criteria of a prospect. Salespeople must not only
qualify leads but also carefully analyze the relative value of each lead.
95) A lead is a potential prospect that may or may not have what it takes
to be a true prospect. If a salesperson determines that a lead is a good
candidate for making a sale, that person or organization is no longer
considered a lead and instead is called a prospect.
96) Various factors allow salespeople to determine whether a lead is a
good prospect. Some of these are the existence of a need, the lead's
ability to pay, the lead's authority to pay, the accessibility of the lead,
and the lead's eligibility to buy.

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97) There are some common sources of leads including satisfied
customers, endless chain, center of influence, networking, Internet, ads,
direct mails, catalogs and publicity, shows, seminars, lists and
directories, data mining, cold calling, spotters, sales letters, and other
sources like a salesperson's own firm or friends.
98) Satisfied customers are a salesperson's most effective source of
leads. Furthermore, satisfied customers are usually prospects themselves
for additional sales. Salespeople should never overlook the opportunity
to sell deeper to current customers.
99) First, James must move outside his own comfort zone, act like the
host instead of a guest. Second, he should spend most of his initial
conversation with an individual talking about that person's business and
not the company that he works for. He should also take this opportunity
to learn about the person's nonbusiness interests. Third, he must follow
up with his new contact on a regular basis with cards, notes, articles of
interest, etc. Whenever he gets a lead from his contact, he must send a
thank-you note. Whenever possible, he should send the contact lead
information as well.
100) Successful salespeople are using their companies' Web sites, e-
mail, listservs, bulletin boards, forums, roundtables, and newsgroups to
connect to individuals and companies that may be interested in their
products or services. Firms are also developing extranets—Internet sites
that are customized for specific target markets. Extranets are usually
used to build relationships with current customers, but some companies
are also using these sites to generate leads.

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101) Firms' marketing departments have developed sophisticated
systems to generate inquiries from leads, often including a toll-free
number to call for more information, by using advertising and direct
mail. Marketing departments are more than just tools for filling the sales
funnel, however. Account-based marketing efforts use an enterprise
account sales/marketing team devoted to the customer. In these teams,
marketing, working with the sales team, actually helps develop the
account plan, rather than just supply the sales force with contact
information, and so forth.
102) Some key things to keep in mind when planning such a webinar
include the following: Invite those that are considered to be good
prospects (qualified leads) and who may not be willing to see a
salesperson on a one-on-one basis. The speaker should be considered an
authority on the topic. Try to go as high quality as possible because the
seminar is supposed to be an image-building exercise. A company
representative should take an active role before, during, and after the
seminar.
103) First, the lists may not be current. They may contain some
inaccurate information, regardless of the guarantee of accuracy. In
international selling situations, procuring lists can be much more
difficult.
104) Sophisticated firms are developing interactive databases that
contain information about leads, prospects, and customers. Data mining
is the use of artificial intelligence and statistical tools to discover
insights hidden in the volumes of data from existing databases. It is
associated with better sales prospecting and more tailored sales
presentations.

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Test Bank for Selling: Building Partnerships 10th Edition

105) To help salespeople use their time wisely and to increase the
number of leads that sellers actually follow up with, some firms engage
in lead filter and assessment, sometimes called prequalification, before
turning them over to the field sales force. This can include data
verification (making sure the phone number, address, mail address is
correct), fraud screening (to weed out bots and other devices), and
grading/scoring and prioritization of the leads. Many lead qualification
systems assign points to a prospect, rather than simply designating them
as hot or cold, offering the salesperson more insight into the lead's value.
Sometimes the prequalification process is as simple as purchasing a
prequalified list.
106) Research shows a number of reasons for reluctance to call,
including worrying about worst-case scenarios; spending too much time
preparing; being overly concerned with looking successful; being fearful
of making group presentations, of appearing too pushy, of losing friends
or losing family approval, and of using the phone for prospecting; and
feeling intimidated by people with prestige or power or feeling guilt at
having a career in selling.

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