Scenario 17.1 Use the following to answer the questions. Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Larry Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers. Larry's current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year

Question

totaled $42,000. Management has given Larry the choice of going to a compensation plan where he will earn 15% of all sales, but no draw. Refer to Scenario 17.1. Larry selects several motorcycle stores that are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Larry is engaged in which of the following?

A. Prospecting
B. The preapproach
C. Approaching the customer
D. Making the presentation
E. Overcoming objections

Answer 1

Answer: B