MKT 420 Exam 2: Chapter 6

profitability

Any good lead management system should evaluate the ___ of sales resulting from various lead-generating activities instead of just counting the number of names a particular method yields.

data mining

Companies are using __ __, which consists of artificial intelligence and statistical tools, to discover insights hidden in the volumes of data in their databases.

negative referral

~: type of referral a salesperson does not like to get; every effort should be made to ensure the customer is satisfied and stays satisfied with the solution offered by the salesperson.

promoters

~: your most loyal customers who not only keep buying from you but also urge their friends and associate to do the same.

bird dogs

Another name for spotters.

blitz

A selective type of cold calling where a large group of salespeople attempt to call on all the prospective businesses in a given geographical territory on a specified day.

standard industrial classification (SIC)

A standard numerical code system used by the U.S. government to classify products and services.

lead management system

A tool that allows sales reps to follow prescribed sales tactics when dealing with sales prospects or opportunities, to aid in closing the deal with a client

star clients

Customers that buy a lot from the selling firm at a lower service cost are sometimes affectionately referred to as __ __.

prospect

If the salesperson determines that the lead is a good candidate for making a sale, that person or organization is no longer considered a lead and instead is called a ____.

outbound

In ___ telemarketing, telephones are used to generate and then qualify leads. These calls may be initiated directly by the salesperson, by inside sales reps, or by third-party vendors.

center-of-influence method

In one form of networking, the ~, the salesperson cultivates a relationship with well-known, influential people in the territory who are willing to supply the names of leads.

networking

In sales, ____ simply means establishing connections to other people and then using those networks to generate leads, gather information, generate leads, and so on.

endless-chain method

In the ~, sales reps attempt to get at least one additional lead from each person they interview. -- works best when the source is a satisfied customer and partner, but can also be used when the prospect doesn't buy.

cold canvass method (cold calls)

In using the ~, a sales rep tries to generate leads for new business by calling on totally unfamiliar organizations.

telemarketing

Increasingly, firms are relying on ___ to perform many functions that field sales reps used to perform.

sales funnel

Leads > Prospects > Customers

webinars

Many firms use seminars and ___ (online seminars) to generate leads and to provide information to prospective customers.

exclusive sales territories

Most companies operate on the basis of ~, meaning that a particular salesperson can sell only to certain prospects (such as doctors in only a three-county area) and not to other prospects.

lead

Prospecting begins with locating a ___.

expert

Salespeople can prospect by becoming a recognized ___ in their field.

prospect

Salespeople must ___ in order to find new customers to replace those that switch to competitors, go bankrupt, move out of the territory, merge with noncustomers, or decide to do without a product or service.

5

Salespeople must ensure that their leads meet the __#__ basic criteria of a prospect.

lead qualification system

Salespeople need to develop a process for qualifying leads, often called a __ __ __.

house accounts

Salespeople should avoid targeting leads already covered by their corporate headquarters. Large customers or potential customers that are handled exclusively by corporate executives are often called ~.

selling deeper

Satisfied customers not only provide leads but also are usually prospects for additional sales... this is sometimes referred to as ___ ___ to a current customer.

spotters

Some salespeople use ___, also called bird dogs. These individuals will, for a fee, provide leads for the salesperson.

75

Some trainers argue that successful salespeople should be getting about ___% of their new business through referrals from customers.

databases

Sophisticated firms are developing interactive ___ that contain information about leads, prospects, and customers.

T

T/F: By using high-pressure tactics, sales attempts may be made to those who do not need or really want a product. Such sales benefit no one.

T

T/F: 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.

T

T/F: Firms combine inbound and outbound telemarketing to prospect effectively.

T

T/F: Many companies display or demonstrate their products at trade shows, conventions, fairs, and merchandise markets.

T

T/F: Satisfied customers not only provide leads but also are usually prospects for additional sales. -- sometimes referred to as selling deeper to a current customer

T

T/F: Some salespeople mistakenly consider every lead a prospect without first taking the time to see whether these people really provide an opportunity to make a sale

activity

The Roper Organization, which has studied centers of influence for more than 45 years, states that they are consistent in one aspect: their degree of ___.

5

The lead scoring system recommended by the Corporate Executive Board rates leads on __#__ traits (organizational basics, operating environment, view of the status quo, receptivity to new or disruptive ideas, and potential for emerging needs) and then, based on the score, offers suggestions on whether to pursue the opportunity.

referred lead

The name of a lead provided by either a customer or a prospect, known as a ___ ___, is generally considered the most successful type of lead.

spotter

The sales rep sometimes pays the fee simply for the name of the lead from a ___ but more often pays only if the lead ends up buying the product or service.

prequalification

To help salespeople use their time wisely and to increase the number of leads that sellers actually follow up with, some firms engage in ____ of leads before turning them over to the field sales force.

trade fairs

Trade shows are called ~ in Europe.

guanxi

Trying to sell in China without successful networking, called ____, would be disastrous.

insight selling

Under this approach, salespeople evaluate prospects who do not necessarily have a clear understanding of what they need but are in state of flux and have been shown to be quite agile in making changes -- this approach also encourages salespeople to interact with people in the buying firm who are skeptical rather than friendly information providers.

telemarketing

__ is a systematic and continuous program of communicating with customers and prospects via telephone.

extranets

___ are usually used to build relationships with current customers, but some companies are also using these sites to generate leads.

networking

___ is the utilization of personal relationships by connected and cooperating individuals for the purpose of achieving goals.

inbound

_____ telemarketing uses a telephone number (usually toll-free) that leads and customers can call for additional information.

webinars

online seminar

systems integrators

~: service vendors that have the authority to buy products and services on behalf of the delegating firm -- usually assume complete responsibility for a project from its beginning to follow-up servicing.

customer referral value

~: the monetary value of referrals as well as the costs to get and maintain the referrals.

merchandise markets

~ are places where suppliers have sales offices and buyers from resellers visit to purchase merchandise.

trade shows

~ are short, temporary exhibitions of products by manufacturers and resellers.

satisfied customers

~ are the most effective sources for leads.

social media

~ has been defined as "the technological component of communication, transaction, and relationship building functions of a business that leverages the network of customers and prospects to promote value co-creation.

house accounts

~ large customers or potential customers that are handled exclusively by corporate executives.

prospecting

~: The most important activity that many salespeople do

lead

~: a potential prospect that may or may not have what it takes to be a true prospect.

buying community

~: a small, informal group of people in similar positions, often from several companies, who communicate regularly, both socially and professionally.

North American Industry Classification System (NAICS)

~: a uniform classification for all countries in North America

referral events

~: gatherings designed to allow current customers to introduce prospects to the salesperson.

extranets

~: internet sites that are customized for specific target markets; usually used to build relationships with current customers

prospecting

~: the process of locating potential customers for a product or service -- the most important activity many salespeople will do