Sell 1st Edition Ingram Test Bank

SELL 1st Edition Ingram Test Bank
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Chapter 5—Strategic Prospecting and Preparing for Sales Dialogue
MULTIPLE CHOICE
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
ANS: C PTS: 1 DIF: Medium REF: p. 120
OBJ: 1 BLM: Remember
2. Which statement provides the best rationale of allocating time for prospecting for new
business on a regular 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 due to 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 the slow times.
ANS: A PTS: 1 DIF: Medium REF: p. 120
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 prospecting for new business activities.
d. They fear the rejection that comes with prospecting for new business.
ANS: D PTS: 1 DIF: Easy REF: p. 120
4. Steve is a salesperson for XYZ Corporation. His territory includes 50 established accounts,
which he calls on regularly. Although Steve 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 Steve 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.
OBJ: 1 BLM: Higher order
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
ANS: B PTS: 1 DIF: Medium REF: p. 121
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
7. Which statement best describes the basic purpose of strategic prospecting?

a. to maximize salesperson productivity by helping to 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
ANS: A PTS: 1 DIF: Hard REF: p. 121
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.
ANS: D PTS: 1 DIF: Medium REF: p. 121
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
10. 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
11. 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)
12. With respect to the strategic prospecting process, what is the difference between a sales lead
(suspect) and a sales prospect?
a. The prospect is currently buying from a competitor.
b. The salesperson has qualified the lead to determine potential.
c. A prospect has purchased similar goods from a competitor in the past.
d. The sales lead fits the ideal customer profile of the target market.
13. From a sales manager’s perspective, what is the essential difference between a sales lead
(suspect) and a sales prospect?
a. The prospect is currently buying from a competitor and therefore has a need.
b. The sales lead has more potential to becoming 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.
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
15. Sandy 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 Sandy 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
ANS: C PTS: 1 DIF: Hard REF: p. 122
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
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
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
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 canvassing method
c. the bird-dog method
d. the referral method
20. Bill is a salesperson who relies on his current customers to help him identify potential new
customers. Which method for lead generation is Bill relying on?
a. cold calling
b. referral
c. company source
d. customer source initiative
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 letter of introduction?
b. the cold canvassing method
c. the bird-dog method
d. the referral method
ANS: A PTS: 1 DIF: Easy REF: p. 124
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
23. In which prospecting method do salespeople seek to obtain leads from influential people?
b. the known entity method
c. the centres of influence method
d. the referrals method
ANS: C PTS: 1 DIF: Easy REF: p. 124
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
25. According to the textbook, which statement best summarizes the effectiveness of social media
as a sales prospecting method?
a. So far, social media has proven to be more effective than cold canvassing but less
so than traditional networking options.
b. Due to its popularity, social media have 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 are tools of communication and therefore better suited to relationship
management than as a sales prospecting tool.
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
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
28. Which sales prospecting method uses business and municipal directories and commercial lead
lists?
a. cold canvassing
b. networking
c. company sources
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
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 dataming
d. cold canvassing
31. Why can inviting prospective customers to a seminar be 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.
32. 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. As 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.
33. What is the first step in a strategic prospecting plan?

a. Set goals for prospecting activities.
b. Allocate specific time for prospecting activities.
c. Track results of prospecting activities.
d. Evaluate the effectiveness of prospecting activities.
34. What is the second step of a strategic prospecting plan?

ANS: B PTS: 1 DIF: Easy REF: p. 128
35. What is the third step of a strategic prospecting plan?

36. What is the fourth step of a strategic prospecting plan?

37. According to the textbook, what is the primary reason for a salesperson to create and use a
strategic prospecting plan?
a. For most salespeople, time available for prospecting activities is limited so being
as productive as possible with that time is very important.
b. Using a strategic prospecting plan shows a higher level of professionalism.
c. Remaining competitive within your particular industry is critical.
d. It is a more reactive approach to managing sales than most salespeople are familiar
with.
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
39. 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 improve their image with management.
d. The tracking system allows salespeople to monitor the effectiveness of their
various prospecting methods so they can make adjustments accordingly.
40. Steve 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
ANS: C PTS: 1 DIF: Hard REF: p. 128
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
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.
ANS: D PTS: 1 DIF: Hard REF: p. 128
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.
44. Why is the purpose of gathering precall information?

a. 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 satisfy the legal requirements of the Freedom of Information Act of 1996
d. to determine the best way to approach the prospect
45. 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
46. 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
47. 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.
TRUE/FALSE
1. For most salespeople, achieving sales growth objectives requires finding a balance between
generating additional business from existing customers and finding new customers.
ANS: T PTS: 1 DIF: Easy REF: p. 120

OBJ: 1
2. According to the textbook, the main reason that salespeople dislike prospecting is that it is too
time consuming in comparison to the results generated.
ANS: F PTS: 1 DIF: Medium REF: p. 120

OBJ: 1
3. Good salespeople do not need to prospect as customers come to them.
ANS: F PTS: 1 DIF: Easy REF: p. 120

OBJ: 1
4. 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.
ANS: T PTS: 1 DIF: Medium REF: p. 120

OBJ: 1
5. Getting past the gatekeeper in an organization to make contact with decision makers is one of
a salesperson’s greatest challenges with prospecting.

OBJ: 1
6. Prospects may be reluctant to see a salesperson if they have never heard of the salesperson’s
firm.

OBJ: 1
7. In general, most prospects are eager to meet with salespeople.

OBJ: 1
8. The basic purpose of strategic prospecting is to identify leads.
ANS: F PTS: 1 DIF: Hard REF: p. 121

OBJ: 2
9. The basic purpose of strategic prospecting is to help salespeople determine the best sales
opportunities in the most efficient way.

OBJ: 2
10. The strategic prospecting process is often illustrated as an inverted closed-end funnel.

OBJ: 2
11. Highly productive salespeople have much narrower sales funnel bottoms than less productive
salespeople.

OBJ: 2
12. Organizations or individuals who might possibly purchase the product or service a salesperson
offers are known as sales prospects.

OBJ: 2
13. The characteristics of a firm’s best customers or the perfect customer are known as the ideal
customer profile.

OBJ: 2
14. 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.

OBJ: 2
15. 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.

OBJ: 2
16. In comparison to other prospecting methods, cold calling is highly inefficient.

OBJ: 3
17. Using referrals and introductions does not improve the efficiency of cold canvassing.

OBJ: 3
18. Advertising inquiries are like inbound telemarketing in that the lead does some degree of
self-qualifying.

OBJ: 3
19. Networking with salespeople from noncompeting firms can be a productive method of
prospecting for new business.

OBJ: 3
20. The advent of electronic networking has made prospecting for new business even more
difficult.

OBJ: 3
21. According to the textbook, social media such as Facebook and MySpace have proven to be
excellent prospecting tools for salespeople.
ANS: F PTS: 1 DIF: Hard REF: p. 125

OBJ: 3
22. Most salespeople should ignore looking at company records as a sales prospecting method due
to its low efficiency in generating new business.

OBJ: 3
23. Inquiries as a result of advertising are a poor source of customer prospects due to
self-selection.

OBJ: 3
24. Many organizations use both inbound and outbound telemarketing to generate leads.

OBJ: 3
25. Outbound telemarketing is a form of cold calling.

OBJ: 3
26. Conducting product or service seminars can be a good source of customer prospects because
those who attend have chosen to be there.

OBJ: 3
27. One of the key advantages of trade shows is the generation of good leads.

OBJ: 3
28. Published sources are rarely used for sales prospecting activities due to their inherent
inaccuracies.

OBJ: 3
29. The first step in developing a strategic prospecting plan is to allocate time for prospecting
activities.

OBJ: 4
30. The heart of a strategic prospecting plan is a tracking system that captures the information
gathered as a result of prospecting activities.

OBJ: 4
31. Due to the time involved, the strategic prospecting plan should not be evaluated on any more
than an annual basis.

OBJ: 4
32. The more the salesperson knows about his or her qualified prospects, the better the chance he
or she has of developing a successful relationship with that prospect.

OBJ: 5
33. 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.

OBJ: 5
34. With the exception of cold calling, a salesperson should always know the contact’s name
before making the sales call.

OBJ: 5
35. The first stage of obtaining precall information focuses on the contact.

OBJ: 5
36. The person who controls the flow of information between the salesperson and the contact is
called the gatekeeper.

OBJ: 5
37. 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.

OBJ: 5
38. Salespeople should be nice to gatekeepers because they can be good sources for obtaining
critical precall confirmation.

OBJ: 5
39. Even if they are a member of a buying team, the contact (whom the salesperson is calling on)
always has the most influence over the buying decision.

OBJ: 5
40. When dealing with buying teams, the salesperson should attempt to identify the amount of
influence each member exerts.

OBJ: 5
41. Even when dealing with a buying team, the salesperson should focus his or her attention on
one person to improve communication.

OBJ: 5
42. As the complexity of the purchase decision increases, the probability of there being more than
one person influencing the decision increases.

OBJ: 5
43. 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.

OBJ: 5

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7. Which statement best describes the basic purpose of strategic prospecting?

8. Why is the strategic prospecting process often viewed as a sales funnel?

33. What is the first step in a strategic prospecting plan?

34. What is the second step of a strategic prospecting plan?

35. What is the third step of a strategic prospecting plan?

36. What is the fourth step of a strategic prospecting plan?

39. Why is a tracking system important to prospecting?

42. Which statement about evaluating prospecting activities is most accurate?

44. Why is the purpose of gathering precall information?

ANS: T PTS: 1 DIF: Easy REF: p. 120

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7. In general, most prospects are eager to meet with salespeople.

ANS: F PTS: 1 DIF: Easy REF: p. 120

8. The basic purpose of strategic prospecting is to identify leads.

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16. In comparison to other prospecting methods, cold calling is highly inefficient.

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25. Outbound telemarketing is a form of cold calling.

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