Business Development Test Answers
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One common method for selecting prices is
using discriminatory pricing strategies. This means:
Estimating price consumers wish to pay
Attempting to provide different prices (discounts,
coupons) to different groups of people (Ladies Night, Sr Citizens)
Comparing to market norms and adding/subtracting
premium based on perceived quality
When a prospect raises objections in a sale, a
salesperson should...
Defend the point of view against objection
Mention that objection is valid and that they will
answer at a later date
Ignore the objection and point to the other
positive points
Explain that the objections have no basis
Expect them and be prepared to answer
True of False: Vertical Integration means to
integrate companies that are suppliers, distributors, or clients of the current
products and services.
False
True
Identifying how to communicate with customers
is a __________ strategy:
Communications Strategy
Market Penetration Strategy
Distribution Strategy
What does market share mean?
the portion of a market controlled by a particular
company or product.
Opportunities to share in greater market profits
Ownership stake in a public company
True or false? When making a sales call you
should always do most of the talking.
False
TRUE
Answering which of the following questions
does NOT help in understanding a niche?
How will the Board of Directors help implement
capital controls?
Which areas are being ignored by competitors?
Which areas are competitors already
well-established?
What are potential opportunities for the business?
True or false? As long as a salesman closes,
it doesn't matter how much product customization they commit to.
TRUE
False
As a part of go-to-market plan you must figure
out the proper sales _________.
None of these
customer management
channels
processes
What determines the types of data to leverage?
It depends on what is relevant and what is
available.
Gender is almost always relevant.
Age is usually a pretty solid indicator of
segments.
Demographics are always relevant.
Which of the following should be avoided when
setting up a breakfast meeting with a prospect?
Setting the meeting in a popular and noisy
restaurant
Setting the meeting in the prospects hotel in which
he is staying
Setting the meeting in a restaurant with a quiet
ambience
Setting the meeting where there are only a few
items on the menu to choose from
Setting the meeting on the route which the prospect
takes to his office
A _____ lead is expected to be responsive.
warm
cold
Which of the following is NOT good data to
leverage?
Their purchasing habits
Their values
Their number of siblings
Their personality traits
What is the best way to leave a compelling
voicemail for a prospect?
Mention that you are the best sales person to
address his business need
Mention that a contact with whom the prospect has
done business with has referred you for a business need
Speak with confidence about your track record to
impress the client
Mention your number first and go ahead with your
reference
What is the definition of the common business
development term "pipeline"?
The company's plumbing
The amount of potential prospects which a company
has not made contact with yet
The flow of potential clients which a company has
started developing
None of these
In what way should a salesperson handle a
situation where an angry customer calls to report the poor service he received?
Listen to customer patiently and take notes to
understand the gravity of the problem, then apologize
Immediately connect the customer with the person
that can fix their problem
Listen to the customer and apologize when he pauses
Listen to the customer and state that he is sorry
and he will give 10 minutes of undivided attention to him
What is the first step in customer
segmentation?
Analysis
Gathering data.
Creating segments
Validation
In a company that has not launched yet, when
should you look into customer segmentation?
Right before launch.
When you have identified a consumer base.
3 months pre-launch
You shouldn't.
True or false? Salesmen are generally not
protective of their territory and enjoy the opportunity to move to new
locations.
False
True
Generally, you can think of _______ as the
strategy and ______ as the execution.
sales; marketing
sales; business development
marketing; sales
How can you differentiate a
"champion" from the crowd?
They call you back right away.
They can introduce you to decision makers in the
organization and are willing to advocate on your behalf.
They ask good questions and want to discuss
pricing.
They are always willing to take a meeting with you.
Generally the purpose of a pre-purchase
meeting is to ________.
None of these
figure out delivery and other logistics
explain product features, problem solve, and
schedule another meeting.
close a deal
Which of the following traits distinguishes an
excellent salesperson from a good sales person?
Tenacity
The ability to answer objections
Any of these
The ability to hold a conversation
Demeanor
Which of the following is a good listening
technique during a meetings with a prospect?
Letting customer speak on and on without
interruption
Taking notes
Asking questions when there is a pause
All of these
Which of the following is NOT a method of
customer segmentation?
Geographic
Behavioral
Religion
Demographic
What is a cold call?
A call that leads to a negative reaction
A call that does not lead to a sale
A call made without an introduction or appointment
A fake phone number
One of the foundational aspects of business
development, is to assess the current assets of the company as they relate to
the maintenance and expansion of the business.
True
False
What is the best way to service a last minute,
highly critical request from a prospective client in an area in which you don't
have the expertise?
Stay on, ask questions, confer with people to ask
for help, and coordinate to deliver the service until the issue is resolved
Tell your boss and ask him to handle this
Tell the client that it is not your area and give
the numbers of the person to be contacted
Refer them to the competition
Politely excuse yourself while sympathising with
the problem
The more often you call a client, eventually
the incremental value is worth less than the costs of making the calls. This is
an example of ________ .
The Sales Trap
The Law of Diminishing Returns
Purchasing Power
Down selling
Which of the following is a concern caused by
a incentive based compensation plan?
Timing of compensation can become complicated
All of these are potential issues
Complicated scenarios involving team sales
What is upselling?
Moving a qualified lead up the chain of command
None of these
Emphasizing the quality of a product
Selling a customer premium upgrades
________ can motivate a client to close on a
deal because there is limited access to the resource.
Automated emails
Scarcity
Ubiquity
Elitism
What is the purpose of an elevator pitch ?
To tell the company's mission statement
It is a common need which is required for all
salespeople
To effectively communicate the value of the company
in a succinct manner
It is a pitch to demonstrate one's social stature
Business development combines which two of the
following business functions?
Finance and Marketing
IT and sales
Marketing and sales
Marketing and IT
Finance and Sales
Most Companies Business Models are:
Anti-Cyclical
Cyclical
True or False: Narrowing the target for
potential clients helps because it: Concentrates sales efforts to a selective
group that is most likely to be most profitable
False
True
True or false? Maintaining a relationship with
a customer after a sale is worthless.
False
TRUE
True or False The definition of a product life
cycle is: the time and maturation of a product between it's initial
introduction to the market and eventual removal.
True
False
Which of the following techniques will be most
likely to generate a response from a voicemail?
Leaving a voicemail with a reference, an
introduction, the way you can solve a business problem, and leaving off with
your contact information
Leaving a voice mail with little detail except for
explaining that you would like them to contact you and leaving your information
Leaving a voicemail on a Sunday
Leaving a voice mail on a weekday after hours
True or False: Start up companies are almost
always succesful in the first few years.
False
True
PPC is a common term for internet companies
meaning:
Pay Per Click
Power, Perception and Challenge
Person to Person Chatting
For which of the following reasons is cold
calling generally discouraged?
The prospect is generally unprepared for an
interruption
All of these
Cold callers dont know for sure if they are talking
to the prospect
The prospect may not have a need for a solution or
a problem
Which of the following qualities would help
close the most deals?
The ability to smooth talk with a prospect
A high energy level
None of these
A knowledge of how the product can help the
customer and a genuine belief in the product.
A knowledge of which features bring maximum benefit
to his employer
What is a commission?
A percentage of a sale that goes to the sales
representative
All of these
A sales representative that is hired on a contract
basis
A closed deal
Long term relationships are important to
business development.
True
False
True or False? Business development units have
a monopoly on new business opportunities.
False
True
Which of the following should segmentation
impact?
Branding
Customer Service
Hiring
Every facet of business.
What is a common cause of a "sales
trap"?
Sales overload
Overselling inventory
Understaffed sales team
Misaligned or inconsistent strategy
Underservicing a territory will hurt sales
because ________.
Both of these
prospects will receive less attention
fewer leads will be pursued
Which of the following is a common email
syntax?
first initial + last name@domain.com
None of these
first name + domain@domain.com
Last name + Middle Name + First Name@domain.com
True or false? There is no need for the
marketing and the sales department to communicate.
False
TRUE
What is the most popular CRM in the US?
SugarCRM
Adwords
Google Analytics
Salesforce
Which of the following provides value to a
business?
All of these
Real Estate
Capital
People
A company interested in horizontal growth
opportunities is looking to:
Buy up competitors
Lower Prices to Increase Sales
Increase market share in the current markets.
True or Fales: An Organization Chart is a
diagram that shows the structure of an organization and the relationships and
relative ranks of its parts and positions/jobs.:
True
False
B2B stands for business to business, True or
False
True
False
Business networking is a relevant tool in
business development.
False
True
Gathering data on consumers during marketing
campaigns is important because:
Need to understand competitors more effectively
Need to track impact of campaign
Want to verify profitability
Which of the following parties does a business
have to manage relationships with?
Partners
The press
Employees
All of these
Customers
NPV and ROI agree except when:
Projects last for extended periods
Interest Rates are high
Projects with multiple non-continuous profitable
years, will not be calculated correctly
Segmenting your sales team to correspond with
prospect locations is an example of _________.
upselling
territory design
prospecting
All of these
True or False? Business development involves
creating relationships of long term value.
True
False
______ is the process of acquiring information
to ensure that clients will benefit from a product .
Correlating
Prospecting
Pre-Purchase
None of these
What is the definition of selling in a
business development sense?
Persuading or inducing someone to buy something
Selling is done when a deal is signed, executed and
delivered to the customer to his satisfaction.
Giving or handing over something in exchange for
money
None of these
Having a stock of something or a product available
for sale
What should you do once you've organized your
data in Excel?
Use it to find meaningful trends among customers
Create a list of all possible segments using the
data.
Share it with your team
Look at it
Selling someone a complimentary good along
with a primary good, is an example of ________.
over selling
(none of these)
cross selling
down selling
Which of the following is NOT a benefit of
customer segmentation?
Increased customer retention
It allows for one easy strategy
Prioritizes where to invest resources
Identifies new market opportunities
Which of the following does Sales Management
Information include?
Top performing salespeople/channels
All of these
Reasons for wins/losses
Sales of products and services
Which of the following is an example of a
compelling elevator pitch?
"I am a sales executive specializing in
serving customers in IT."
"I serve customers and stakeholders in IT,
uncover their business problems, prioritize and resolve them, and deliver
effective solutions through collaboration and teamwork, thereby increasing
revenues and satisfaction."
All of these
"I am a sales manager managing a $1 million
business."
"I am a sales executive who advises customers
on what they need to be doing."
NPV takes into account all but:
Risk
Cash Flows
All of the above
Time
Measuring a project through a Pay Back Period
metric often ignores:
Cash Flows
Riskiness
Time
Which of the following is NOT an important
question to answer concerning a product's distinguishing characteristics?
What are the critical needs of your potential
customers?
What are the demographics of the group and where
are they located?
How is the cost structure impacted by the current
Inventory Management?
Are there any seasonal or cyclical purchasing
trends that may impact your business?
Which of the following is NOT part of the
SMART sales framework?
Sellable
Attainable
Measurable
Realistic
True or False: When targeting companies to
partner with, one should contact any organization in the target industry.
False
True
Business development is the creation of
long-term value for an organization from customers, markets, and relationships.
False
True
In general, business development is another name
for traditional sales.
False
Correct
When is a good time to roll out your segments?
After you've validated them
Once you've gathered all of your data
3-6 months after initial research
Right after you create the segments
True or False: allowing time to accumulate
between touches (ie. voicemails, emails, etc) will always "kill" a
deal.
False - Properly timed delays show both respect and
persistence.
True - The more time between touches, the more you
become less of a priority.
What is customer segmentation?
A means of identifying and organizing current and
future customers.
A way to sell multiple products which will appeal
to a particular customer's varied interests.
Segmenting a customer into smaller pieces.
A customer loyalty plan based on customer demographics.
Why are breakfast meetings effective?
The prospect is fresh
Prospects know a breakfast meeting is for a
definite action
Prospects make an uncommon investment of time
during breakfast
All of these
The menu is simple and likely not to distract
either party from the business at hand
ROI is a typical measure of return. One of its
flaws is:
It's a single measure
Projects with multiple non-continuous profitable
years, will not be calculated correctly
It often agrees with NPV
Which of the following functions generally
does NOT fall under business development?
IT
Production
Sales
R&D
Marketing
What is one way to gather primary data?
Site analytics
Customer service
Interviews
Order info
________ in one territory may cause you to
lose sales in other territories.
Cross selling
Underselling
Overselling
Upselling
Conversion ratios are important to monitor
because they:
Are a metric for efficiency
Are a metric for profitability
Are a metric for inventory utilization
True or false? Total closed deals is always
the best measure of performance.
TRUE
False
What is one of the main differences between an
early, project based, business development unit and a matured,
institutionalized unit?
The project based unit has fully developed
processes for tracking and monitoring performance levels while the success in
the matured unit is solely based on individual heroism
The institutionalized unit has strongly defined BD
roles and processes while the project based unit typically does not
The project based unit has well defined processes
in place to improve performance across the company while the matured unit does
not
After you've gathered data, what is the second
step in customer segmentation?
Create segments
Interview consumers
Validate those segments
Analysis
Which of the following is an example of a
Columbo Close?
"Just one more thing..." and tell them
the price
"Just one more thing...i will call you again
to ask you about your decision."
"Just one more thing...you will gain more
revenue from us in business"
"Just one more thing, you will find us the
best in this business"
"Just one more thing..." and ask a
question when the prospect's guard is down
Business development is often viewed as
bridging the gap of obstacles between:
Product development and sales
Business goals and sales
Business goals and new services
Project management and business goals
What does CRM stand for?
Customer Relationship Management
Core Rival Market
Cost Reduction Management
Common Response Match
Many deals are lost due to the perception that
the vending organization does not understand the needs of the client
organization. What percentage of potential clients think that way?
About 60%
About 10%
About 40%
About 20%
True or False: A salesperson should close a
deal by asking, "What's the next step?"
False
True
After you've launched, when is a good time to
perform customer segmentation?
Anytime.
When you have 6-12 months of data.
After 3 months.
After 1 month.
Dividing Expenses by sales gives you the
____%.
Metric
Sales for Expenses
Commission
Sharpe
SEO is a common internet term meaning?
Search Engine Optimization
Search Easy Online
Staff Enabled Options
How long is the typical B2B selling cycle?
1-2 years
6-12 months
1-3 months
2-4 weeks
Which of the following is NOT a Salesforce
report type?
Tabular
Matrix
Summary
Provisional
An enthusiastic lead within a larger company
is generally called a/an ___________.
evangelist
inside salesman
angel
stakeholder
International sales can be hampered by:
Regulatory Issues
All of the above
Cultural Differences
Language Barriers
True or False: Voicemail is an effective
technique in sales calls.
False
True
Which of the following is a good time to
perform customer segmentation?
It's never a good time to do this.
After you've identified a solid target consumer
When you are looking to expand into new markets.
Anytime is a good time.
Sales potential is calculated by:
Buying Power divided by Competition
Number of possible accounts x Buying power
Population x Buying power
None of these
What type of question should you ask once
you've determined your customer personas?
What's on their playlist?
How price sensitive are they?
What is relevant to your business?
Are they decision makers?
Marketing Strategies can be composed of:
Poison Pill
Growth Strategy
SWOT
Funding Allocations
In the Competitive Analysis It's Important to
include:
Potential Barriers to the Market
Financial Statements
SWOT Analysis
When should a salesperson back off from a
prospect?
One should never back off from a prospect as one
never knows what could happen
When a prospect says they need time to think the
decision over
When a prospect asks for a lower price for the
product
When a prospect reveals that there are several
people involved and that they will need time to decide
When a prospect poses tough questions
Which of the following is the most effective
way to handle objections from a prospect?
Soften up, isolate, and rephrase the objection
Isolate the objection and answer the objection
Ignore the objection and change the topic politely
Soften up and agree to the objection
Isolate the objection, defend, and prove the point
Which of the following items do people working
in business development NOT need to produce for their clients/partners?
Programs
Content
Merchandise
Tools
Why are breakfast meetings ideal for closing
deals?
Both parties are more alert and less prone to
cancellation in the morning
Restaurants are less busy in the morning and more
conducive to meetings
The prospect will be more relaxed in the morning
before going through the day
Breakfast food is usually lighter and easy to talk
over
Which of the following is NOT a common pitfall
when finalizing segments?
Too many segments
Divergent groups
Groups being too different
Too narrow a focus
A customer is interested in a fixed price of
$2M for a service offering. The salesperson has $2.2M as his lowest price. How
should he go about closing the deal?
Check with his manager for permission to provide
additional discounts
Explain the price in terms of smaller chunks, such
as daily or monthly installments
None of these
Provide an extra service for $200,000 in order to
receive the $2.2M
Reduce the price by $50,000 and accept $2.15M
_____ is a dollar measure based on the average
company size, wealth, sales, and demographics of a territory.
Sales potential
Market cap
None of these
Buying power
What are three phases of a sales cycle?
Sell, sell, sell
Growth, maturity, decline
Prospect, call, sale
Call, sell, buy
What is a good way to gather indirect data on
customers?
Customer service employees
Order info
Crowdsourcing
Site analytics
What is one way to go about validating
segments?
Test them in real time.
A/B test them.
It's not necessary to validate them, just roll them
out.
Talk to your customer service team about them.
Which of the following is the ideal ratio of
speaking time between a prospect and a salesperson to effectively close a deal?
90% prospect and 10% salesperson
50% prospect and 30% salesperson
70% prospect and 30% salesperson
20% prospect and 80% salesperson
10% prospect and 90% salesperson
Which of the following is not a good question
to ask while forming segments?
What product should I create to cater to these
groups?
Can I offer different products or services to meet
the needs of these different segments?
(all of these)
Are there meaningful differences between these
groups?
Which of the following types of people is the
hardest to close deals with?
Socialites
Directors
Relators
Thinkers
All of these
After you've gathered and analyze your data,
what is the next step in performing customer segmentation?
Interview customers
Create segments
Roll out your findings
Validate your data
The sales _______ is a helpful way to forecast
future sales.
funnel
proposal
pipeline
market size
A prospect is a/an _______.
likely buyer
inbound inquiry
candidate for a cold call
All of these
Which of the following is the correct process
for closing a sale?
Building relationships > Analyzing needs >
Presenting a solution > Offering alternatives > Closing the deal
Analyzing needs > Building relationships >
Presenting a solution > Closing the deal
Building relationships > Analyzing needs >
Presenting a solution > Closing the deal
Building relationships > Presenting a solution
> Analyzing needs > Closing the deal
When a prospect refers the salesperson's
product to their own contacts, they are referred to as _____.
Friends
Advisors
Business Relators
Apostles
All of these
Which of the following is NOT a Salesforce
membership?
Contact Manager
Unlimited
Enterprise
Executive
Which of the following would be an example of
"demand generation"?
Presentations
Proposal pitching
All of these
Defining a market
Market Penetration Strategy is one of the
Strategies underlying Cost Control. True or False
False
True
What is the most important trait(s) a
salesperson needs to have to get business from a prospect
Ability to articulate the business need
Ability to become trustworthy
Ability to close
All are equal
Ability to have great presentation skills
What is the "served market"?
That portion of the market that are already clients
All of these
The market that is available to your firm
The portion of the market that is not looking for
service
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