Entrepreneurship and Small Business (ESB) Certification Practice Exam

What step in the sales process involves identifying potential customers?

1. Prospecting

2. Approach

3. Objection

4. Preparation

The correct answer is: Prospecting

The step in the sales process that involves identifying potential customers is prospecting. Prospecting is a critical early stage where a salesperson actively seeks out new leads and opportunities to convert into customers. This can involve various strategies such as networking, researching potential markets, leveraging referrals, or utilizing social media to find individuals or businesses that may have an interest in the product or service being offered. In this stage, the goal is to build a list of potential prospects who could benefit from what the salesperson has to offer. Effective prospecting is essential as it lays the foundation for the subsequent steps in the sales process, which focus on engaging these potential customers and nurturing them through the sales funnel. This mastery of identifying prospects directly contributes to a salesperson's ability to generate sales and meet targets. The other stages, such as the approach, objection handling, and preparation, focus on different aspects of the sales interaction. The approach is about making initial contact; objection relates to addressing concerns potential customers may have; and preparation involves strategizing for the upcoming sales interactions. Each of these stages relies on having a well-defined list of prospects developed during the prospecting phase.