Center for Financial Advisor Education

Transcription

1 Center for Financial Advisor Education FA 200 WORKBOOK Techniques for Prospecting: Prospect or Perish WB

2 THE AMERICAN COLLEGE The American College is an independent, nonprofit, accredited institution founded in 1927 that offers professional certification and graduate-degree distance education to men and women seeking career growth in financial services. The Center for Financial Advisor Education at The American College offers both the LUTCF and the Financial Services Specialist (FSS) professional designations to introduce students in a classroom environment to the technical side of financial services, while at the same time providing them with the requisite sales-training skills. The Solomon S. Huebner School of The American College administers the Chartered Life Underwriter (CLU ); the Chartered Financial Consultant (ChFC ); the Chartered Advisor for Senior Living (CASL ); the Registered Health Underwriter (RHU ); the Registered Employee Benefits Consultant (REBC ); and the Chartered Leadership Fellow (CLF ) professional designation programs. In addition, the Huebner School also administers The College's CFP Board registered education program for those individuals interested in pursuing CFP certification, the CFP Certification Curriculum. The Richard D. Irwin Graduate School of The American College offers the master of science in financial services (MSFS) degree, the Graduate Financial Planning Track (another CFP Board-registered education program), and several graduate-level certificates that concentrate on specific subject areas. It also offers the Chartered Advisor in Philanthropy (CAP ) and the master of science in management (MSM), a one-year program with an emphasis in leadership. The National Association of Estate Planners & Councils has named The College as the provider of the education required to earn its prestigious AEP designation. The American College is accredited by The Middle States Commission on Higher Education, 3624 Market Street, Philadelphia, PA at telephone number The Middle States Commission on Higher Education is a regional accrediting agency recognized by the U.S. Secretary of Education and the Commission on Recognition of Postsecondary Accreditation. Middle States accreditation is an expression of confidence in an institution's mission and goals, performance, and resources. It attests that in the judgment of the Commission on Higher Education, based on the results of an internal institutional self-study and an evaluation by a team of outside peer observers assigned by the Commission, an institution is guided by well-defined and appropriate goals; that it has established conditions and procedures under which its goals can be realized; that it is accomplishing them substantially; that it is so organized, staffed, and supported that it can be expected to continue to do so; and that it meets the standards of the Middle States Association. The American College has been accredited since The American College does not discriminate on the basis of race, religion, sex, handicap, or national and ethnic origin in its admissions policies, educational programs and activities, or employment policies. The American College is located at 270 S. Bryn Mawr Avenue, Bryn Mawr, PA The toll-free number of the Office of Professional Education is (888) AMERCOL ( ); the fax number is (610) ; and the home page address is theamericancollege.edu. Certified Financial Planner Board of Standards, Inc., owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER, and CFP (with flame logo), which it awards to individuals who successfully complete initial and ongoing certification requirements. Copyright 2010 The American College Press All rights reserved W Workbook

3 CONTENTS The American College... W-2 Table of Contents... W-3 Techniques for Prospecting: Prospect or Perish Assignment Schedule... W-4 Special Notes to Advisors... W-7 Course Overview and Expectations... W-9 Student Survey... W-17 Sales Planning Project 1... W-19 Breakout Class 2... W-29 Quiz Class 1... W-31 Quiz Class 2... W-33 Handout W-37 Action Project 1... W-41 Breakout Class 3... W-49 Quiz Class 3... W-51 Handout W-55 Handout W-57 Sales Planning Project 2... W-59 Sales Planning Project 3... W-63 Breakout Class 4... W-67 Quiz Class 4... W-69 Action Project 2... W-73 Breakout Class 5... W-77 Quiz Class 5... W-79 Handout W-83 Handout W-85 Action Project 3... W-87 Breakout Class 6... W-95 Quiz Class 6... W-97 Handout W-101 Handout W-103 Sales Planning Project 4... W-105 Breakout Class 7...W-113 Quiz Class 7...W-115 Sales Planning Project 5...W-119 Breakout Class 8... W-123 Quiz Class 8... W-125 Handout W W-131 Most Valuable Concepts... W Workbook W-3

4 TECHNIQUES FOR PROSPECTING: PROSPECT OR PERISH ASSIGNMENT SCHEDULE This workbook contains quizzes, exercises, projects, and case studies intended to supplement the material in the FA 200 textbook, Techniques for Prospecting: Prospect or Perish. Class Assignments in Text Assignments in Workbook 1 Chapter 1 Course Overview and Expectations Date Acknowledgment of Course Requirements (Due Class 2) Student Survey Sales Planning Project 1 (Begin, Due Class 3) Most Valuable Concepts 2 Chapter 2 Acknowledgment of Course Requirements (Due) Date Breakout Class 2 (Due) Quiz Class 1 (Due) Quiz Class 2 (Due) Action Project 1 (Begin, Due Class 4) Most Valuable Concepts 3 Chapter 3 Breakout Class 3 Date Quiz Class 3 (Due) Sales Planning Project 1 (Due) Sales Planning Project 2 (Begin, Due Class 5) Sales Planning Project 3 (Begin, Due Class 7) Most Valuable Concepts 4 Chapter 4 Breakout Class 4 Date Quiz Class 4 (Due) Action Project 1 (Due) Action Project 2 (Begin, Due Class 6) Most Valuable Concepts 5 Chapter 5 Breakout Class 5 Date Quiz Class 5 (Due) Sales Planning Project 2 (Due) Action Project 3 (Begin, Due Class 7) Most Valuable Concepts W Workbook

5 Class Assignments in Text Assignments in Workbook 6 Chapter 6 Breakout Class 6 Quiz Class 6 (Due) Date Action Project 2 (Due) Sales Planning Project 4 (Begin, Due Class 8) Most Valuable Concepts 7 Chapter 7 Breakout Class 7 Quiz Class 7 (Due) Date Sales Planning Project 3 (Due) Action Project 3 (Due) Sales Planning Project 5 (Begin, Due Class 8) Most Valuable Concepts 8 Chapter 8 Breakout Class 8 Quiz Class 8 (Due) Date Sales Planning Project 4 (Due) Sales Planning Project 5(Due) Most Valuable Concepts Date Review Session for Final Examination Final Exam Review Practice Exam (Complete in class) Date Final Examination. This is a closed-book exam consisting of 50 multiple-choice questions. You cannot refer to your textbook or any other materials during the exam. 200 Workbook W-5

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7 SPECIAL NOTES TO ADVISORS WORKBOOK MATERIALS DISCLAIMER While every precaution has been taken in the preparation of this material to insure that it is both accurate and up-to-date, it is still possible that some errors eluded detection. The authors and The American College assume no liability for damages resulting from the use of the information contained in this workbook. The American College is not engaged in rendering legal, accounting, or other professional advice. If legal or other expert advice is required, the services of an appropriate professional should be sought. CAUTION REGARDING USE OF ILLUSTRATIONS The illustrations, sales ideas, and approaches in this workbook are not to be used with the public unless you have obtained approval from your company. Your company's general support of The American College's programs for training and educational purposes does not constitute blanket approval of the sales ideas and approaches presented in this workbook, unless so communicated in writing by your company. USE OF THE TERM FINANCIAL ADVISOR OR ADVISOR Use of the term "Financial Advisor" as it appears in this workbook is intended as the generic reference to professional members of our reading audience. It is used interchangeably with the term "Advisor" to avoid redundancy. Financial Advisor takes the place of the following terms: Account Executive Agent Associate Broker (stock or insurance) Financial Consultant Financial Planner Financial Planning Professional Financial Services Professional Financial Services Specialist Health Underwriter Insurance Professional Life Insurance Agent Life Underwriter Planner Practitioner Producer Property & Casualty Agent Registered Investment Advisor Registered Representative Senior Advisor ANSWERS TO THE QUESTIONS IN THE COURSE The answers to all essay and multiple choice questions in this course are based on the text materials as written. COURSE COMMENTS The American College welcomes your comments about this course, particularly suggestions for its improvement. The comment cards at the end of this workbook can be used for this purpose. 200 Workbook W-7

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9 COURSE OVERVIEW AND EXPECTATIONS Welcome to FA 200, Techniques for Prospecting: Prospect or Perish. This introductory section begins with an overview of the course objectives. Then it discusses the components of the course, and reviews the various assignments and activities that will help you apply what you learn. Finally, it closes with a discussion of what is expected from you. OVERALL COURSE OBJECTIVES The Financial Services Specialist (FSS) and LUTCF designations utilize the enormously successful and quality training courses from The American College's Financial Advisor (FA) series. The American College and National Association of Insurance and Financial Advisors (NAIFA) have partnered to offer these courses, which enable students to gain the necessary skills associated with being a competent and ethical financial advisor. (See the earlier explanation in the Special Notes to Advisors section for the meaning of the term financial advisor or advisor as used throughout the materials of this course.) The goal of this course is to introduce you to the prospecting process and the methods and strategies that can help you succeed in the financial services industry. The readings and activities in this course will enable you to understand how you can improve your own practice and increase the quantity and quality of the prospects you select and approach. By the end of the course you should be able to: Describe the psychology of prospecting from both the advisor's and prospect's perspectives. Identify target markets using your natural markets as a basis. Select appropriate prospecting sources and methods. Implement relevant prestige building and preapproach activities. Create and utilize telephone approaches to set appointments. Set goals and track progress using a prospecting system. Identify methods of servicing your clients that can lead to repeat business and referrals. Describe relationships with other professionals that can have a positive effect on your long-term success. Achieving these objectives depends on the time and energy you invest in completing the assignments in this course. The next section provides an overview of the course components and the assignments related to them. COURSE COMPONENTS AND ASSIGNMENTS The American College's LUTC and FSS courses offer practical on-the-job training. Therefore, they require students to take action and participate fully. Except for the final examination, each component of the course is designed to facilitate action and participation, which can translate into more new clients and better client relationships. The course components include the classroom the text the workbook the final examination 200 Workbook W-9

10 The Classroom The classroom is where the idea-sharing that gives FSS and LUTC courses their unique value takes place. Of course, the value you receive in the classroom depends on your preparation and participation. The students in an FSS and LUTC classroom represent various levels of knowledge and experience in the financial services industry. Sharing with one another provides everyone an opportunity to grow in proficiency, professionalism, and productivity. In fact, the classroom's "magic" only happens if everyone is prepared and participates. The Text The discussions in the classroom focus on the application of the concepts discussed in the textbook. Thus, you are expected to have completed the reading assignment before class. In addition to the regular textbook information, chapters also contain a chapter review and some may have a case history to read. The Workbook The workbook contains an assignment schedule and all of the mandatory assignments that must be completed for each class. The assignments are primarily breakouts (discussion questions), case studies, quizzes, sales planning projects, and action projects. Assignment Schedule. The assignment schedule located in the front of the workbook lists your assignments for the entire course. There is a space on the assignment schedule to write the date for each class session, which your moderator will announce at the first class. By following the schedule, you can readily determine the material that is to be covered in every class and the work that is expected of you. Except for the assigned readings in the textbook and assignments your moderator gives to you, all other activities can be found in the workbook. Let's take a look at them. Breakouts. For each class there is a breakout, a set of questions and/or exercises designed to focus your attention on the topics your moderator will most likely cover in class. The breakouts ask you to apply what you learn. For example, many of them ask you to explain a concept as you would to a client or prospect. You may then be asked to participate in a role-playing exercise based on your answer to the breakout. You are expected to have breakouts completed for each class. Case Studies. Some classes may use case studies (located in this workbook). A case study provides a specific set of facts and circumstances about a sales situation. You are then asked to come up with specific recommendations and to support your rationale for them. The case studies are a part of the class discussion at the moderator's discretion. You are expected to have them completed for any class for which they are assigned. Quizzes. There is a quiz that must be completed for each class except Class 1. The quizzes for Class 1 and Class 2 are due in Class 2. The quiz questions will be one of three types of multiple choice: straight answer, multiple option, or except. Quizzes are due at the beginning of each class. Sales Planning Projects. Sales planning projects focus on the behind-the-scenes activities that support and enable successful interaction with prospects. They explore the planning involved with marketing, prospecting, interviewing, and servicing financial services products. A sales planning project can also provide learning experiences that sharpen your ability to advise prospects and design appropriate plans for them. Thus, possible activities could include market research, record keeping, interviews of other financial advisors and professionals, and so forth. Forms are provided for each project. You will be given one week or more to complete each assignment. Begin working on the project the day it is assigned. If you wait until the last minute, you can miss the purpose and lose a real benefit. W Workbook

11 Sales Planning Project Sales Planning Project Assignment Summary Title Assigned Class Due Class 1 Identifying Market Segments Developing an Inventory of Prospects Tracking Prospecting and Sales Activity Goal Setting Segmenting Clients into A-B-C Service Groups 7 8 Action Projects. Action projects focus on the skills and techniques to use when working directly with a prospect. They explore the areas of contacting the prospect for an appointment, working with a prospect during an interview, and asking for referrals. In every action project, there is a specific, brief assignment that calls for personal contact with a number of prospects for a definite purpose. Sometimes an approach is suggested. Action projects typically fit into a financial advisor's daily routine. Very little preparation or extra research is involved. Sales are inevitable, but they are not required for completion of the action project. Action Project Action Project Assignment Summary Title Assigned Class Due Class 1 Selecting Target Markets Obtaining Referred Leads Approaching Prospects by Phone 5 7 Most Valuable Concepts. Reflection is an important part of the learning process. This activity is designed to allow you to think about what you have learned in each class and write the most valuable concept, sales idea, or marketing strategy that you learned in the class. Your moderator may ask you to share those ideas with the class. The Final Examination At the end of the course, you will take a 50-question multiple-choice examination that consists of the three multiple-choice formats (straight answer, Roman numeral, and EXCEPT) used in the workbook quizzes and chapter reviews found in the text. All answers are based on the material in the text. The final examination will not be difficult if you have read the text and completed all of the quizzes and chapter reviews. In order to pass the course, you must pass the final examination with a score of at least 70 percent. 200 Workbook W-11

12 Passing Requirements Attendance Your participation in the classroom discussion is crucial to the effectiveness of an FSS or LUTC class. Therefore, your attendance is also vital. To successfully complete the course, you must attend at least six of the eight regular classes. Lateness of more than 20 minutes is half an absence; so is leaving early. Missing more than 40 minutes is a full absence. Two absences are permitted. If you end the course with two and one-half absences, you have exceeded the allowable limit. Moderator's Grade The moderator records grades for quizzes, projects, and participation in class sessions. These grades are combined to obtain the average grade for all classroom-related work. This average grade is called the Moderator's Grade. Examination Grade There is a 50-question final examination at the end of the course. The questions are multiple choice. A grade of 70 percent or higher is necessary to pass the exam. Term Grade The average of the Moderator's Grade and the final examination score must be no less than 70 percent to obtain credit. This average is called the Term Grade. Three Requirements In summary, to qualify for successful completion of the course, you must meet each of the following three requirements: Satisfy the attendance requirement for your course. Score 70 percent or more on the final examination. Receive a Term Grade of at least 70 percent. EXPECTATIONS Before Class Complete all assignments before the class meets. The average amount of time you should plan to spend on completing these activities is at least 2½ hours per class-about the same amount of time spent in classroom discussion. Some classes will require more time, others less. Activities include the following: Read and study the assigned pages in the text. Complete any breakouts and case studies. Complete the class quizzes. Complete any sales planning project assigned. Complete any action project assigned. Complete all other assignments required by the moderator. During Class Students. Turn in your assignments at the beginning of each class. The moderator has been directed to penalize late assignments by 50 percent. If more than a week late, papers receive a zero. Moderator. The moderator is an individual nominated by the local NAIFA association and appointed by The American College. He or she is not a teacher by profession, but a full-time financial advisor or management person. The moderator shares with you the demands of self-discipline and the constant pressure of time. Consequently, the moderator cannot afford the luxury of catering to anyone who is negligent about completing work on time, maintaining reasonable order, or respecting the rights of others. The moderator needs and deserves the full cooperation of every student. W Workbook

13 PERFORMANCE OF ACTION PROJECTS BY NON-SALES STUDENTS AND MANAGERS All students are expected to do the action projects. This applies to students who are non-producers and to those in management. It includes, for example, students who are office staff, home office executives, state insurance commissioners, finance officers on a military base, and others who may not be licensed to sell insurance. If you cannot do the projects yourself, you are expected to handle them in one of the following ways (listed in order of preference): 1. Select an FSS or LUTC student who is with your company or in your community to work with you on the project. Base your reports on your joint work. 2. If there is no local FSS or LUTC student from your company to work with, do joint work with one of your company's advisors who is not taking the course. This can be a former FSS or LUTC student or someone without any FSS or LUTC experience. 3. If you are in management and it is not possible to work with an advisor/student, assign the project(s) to one or more of the advisors under your supervision, and report these results. 4. If you have no advisors to work with and none under your supervision, arrange to interview one or more advisors each week, and use the interview as the basis of the project report. Write what the advisor did on the project reporting form. 5. If the four preceding options are unworkable for you, it is up to you to suggest alternative solutions on which you and your moderator can agree. For example, you may develop two presentations to write out or present to the class during the course. These may be on special topics, or you may research a particular insurance sales topic, to write about and give photocopies to all class members. Topics can include state laws, statistical information about insurance, actuarial studies, articles in insurance magazines, self-improvement topics, relationship insights, or a question that came up in class that needed research. Keep in mind that these five alternatives are special options for isolated instances. In almost all situations every student in the class is expected to complete the action projects as assigned for a passing grade. You are expected to do the field activity and make the follow-up approaches yourself. Most projects can be done in a meaningful way by persons who are not producers. If you need to do the projects in one of the ways suggested above, discuss it in advance with the moderator and reach agreement on how to proceed. As a safeguard, put your agreement in writing, include both of your signatures, and file the agreement. 200 Workbook W-13

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15 NOTE TO FSS AND LUTC STUDENTS Please read this page carefully, sign at the bottom, and return it to your moderator in class. Occasionally there are misunderstandings concerning the requirements for the successful completion of the course. The purpose of this memorandum is to insure that the requirements and the ground rules laid down by the moderator are clearly understood. Failure to sign this form does not relieve you from these requirements. ACKNOWLEDGMENT OF COURSE REQUIREMENTS To be signed by student It is my understanding, from the explanation received in the first class session and outlined in the Course Overview and Guidelines section of the workbook, that successful completion of this course requires meeting the attendance requirements, achieving a passing examination score (70 percent), and earning an overall average (term grade) of 70 percent on all work for the course. Specifically, I understand that 1. Credit for the course will not be given to any student who fails to attend at least six of eight class sessions. The maximum number of absences is two. Missing more than 20 minutes of class is a half-absence. Missing more than 40 minutes of class is a full absence. It does not matter whether absences are due to illness, injury, business appointments, company or agency meetings, vacations, or conflicts in personal schedules. No attendance credit is given for attendance at an exam review session. I further understand that neither the local NAIFA officers or the moderator has authority to excuse absences, because the requirement applies impartially to all students. 2. Grades are assigned during the course by the moderator. Grades for participation in class discussions (and preparation for them), and scores made on action projects, sales planning projects, and quizzes are averaged. That number is then averaged with the final examination to arrive at the Term Grade. 3. Written assignments are to be handed in at the beginning of the class session in which they are due. Papers up to one week late are automatically reduced by 50 percent and to zero after one week. 4. To receive credit for the course, I must sit for and receive a passing grade on a final examination acceptable for any course offered by The American College. The correct answers to the final examination questions are based solely on the information found in the text. The American College reserves the right to set aside the final examination of any class and require another examination. 5. Course results will be mailed out within 4 weeks after the final exam date, assuming all course requirements have been met, including payment of tuition. These reports will indicate a "passing" or "not passing" status only. No numerical grade is assigned. I have read the course requirements and understand them. I further understand that recruiting or attempted recruiting of personnel of another company is not permitted in any American College course or in connection therewith. Finally, I understand that any student whose behavior adversely affects reasonable order and harmony in the classroom will not be allowed to continue with the course. There will be no tuition refund, and the student may be barred from future participation in FSS and LUTC courses. Sign your name Date Print your name 200 Workbook W-15

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17 Name: Date: STUDENT SURVEY Instructions: For each of the following activities, circle the appropriate number corresponding with your proficiency (how well you perform the activity) and interest (how much you would like to learn about it). Use a rating scale of 1 (low level of proficiency or interest) to 3 (high level of proficiency or interest). 200 Workbook W-17

18 Answer the following questions: 1. What kinds of problems do advisors have when they struggle to prospect? 2. What happens when we prospect effectively? What are the outcomes? 3. Review the list of activities on the first page. This gives you an idea of what the course aims to cover. List two learning goals, specifically skills you want to learn or enhance by taking this course.` W Workbook

19 SALES PLANNING PROJECT 1 Identifying Market Segments (Assigned Class 1; Due Class 3) Purpose The key to long-term success is for you to identify and penetrate one or a few related target markets that have a high concentration of people who meet your ideal client profile. The best way to do this is to apply the target marketing process discussed in the text. Thus, the purpose of this sales planning project along with Action Project 1 Selecting Target Markets is to introduce you to some of the main principles of the target marketing process. We encourage you to employ the entire process as discussed in the textbook, building on the success you will experience from using this simplified approach. Assignment This project requires you to utilize principles from the first two steps of the target marketing process: defining your product, and identifying and segmenting your natural markets. At the completion of this project, you will have defined your products in terms of the financial needs your products can meet and your personal traits. (Multi-line agents may opt to focus on one or a few products rather than all of their products to keep this project manageable.) In addition, you will have created an ideal client profile by segmenting your natural markets. Finally you will have identified at least three market segments to consider as target markets. Important Note: You will need to complete this project before you can start Action Project 1 Selecting Target Markets, which is assigned next class and due in Class 4. Action Project 1 requires you to contact four prospects for a 15-minute market survey. Thus, complete this project sooner rather than later in order to leave yourself enough time to identify prospects and conduct your surveys. Procedure Study the portion of the text related to the first two steps of the target marketing process. The procedure that follows is based on the information there: 1. Define your product (question 1 on Report Form 1). This involves describing the financial needs your product meets as well as your personal traits: skills, experiences, hobbies, interests, and so forth. 2. Next, using the worksheets provided, segment your natural markets. Follow the directions that appear below: a. List your 10 best clients in the column headings of the worksheet. Think in terms of both profitability (how much income they produce in terms of commissions, fees, and referrals) and likability (how much you enjoy working with them). b. Then, fill in the information for each client to complete the chart. Note that there are three empty rows for you to add any characteristics you 200 Workbook W-19

20 feel important to record. What follows is an explanation for the column headings that are not self-explanatory Value = approximate amount of income the client produces for you (fees, commissions, and so on). Also, estimate the number of referrals he or she has given you. Needs = the major financial needs of the client (whether you addressed them or not). Think in terms of needs, not products. For example, you would write "estate planning" or "survivor's income" rather than life insurance. Income/Assets = estimated household income and investable assets (includes investment accounts, cash, and so forth; excludes housing) Interests = hobbies, organizations, leisure pursuits, and so forth in which they participate Triggers = the triggers that contributed to the client's willingness to talk to you, such as the birth of a child or reading an online article Personal Characteristics = what makes them likable 3. Analyze the worksheets you completed and create an ideal client profile (question 2 on Report Form 2). An example of the final product appears below. C. Ideal Client Profile My ideal client is someone who: has a household income of $65,000 or more has investable assets of $70,000 or more has young children understands basic principles of investing wants a face-to-face relationship desires advice from a competent professional about retirement and educational planning is family-oriented appreciates the value of good advice and is willing to pay for it is reliable and honest 4. Review the worksheets again and identify at least three market segments that are potential target markets (question 3 on Report Form 3). These are groups of people whose members have common needs and common characteristics that make them relatively distinct from non members. Ideally, they will have a formal or informal communication system and be large enough so that you will not run out of prospects. 5. MAKE COPIES OF THE REPORT FORMS TO REFER TO WHEN COMPLETING ACTION PROJECT 1, WHICH IS ASSIGNED IN CLASS 2. W Workbook

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29 BREAKOUT CLASS What is your major product? List some appropriate segmentation variables you can use to identify market segments for this product. Need/want/value Segmentation Variables Ability to pay Suitability Approachability 2-2. Think about someone you know who has a strong personal brand. What is his or her value proposition? How did this person gain his or her reputation? A. Describe the important aspects of the brand. B. What is the main value proposition offered? C. How did the person obtain the reputation they have? 200 Workbook W-29

30 2-3. Select a product (or service) you provide and a target market to which you currently market it. What are the compelling logical and emotional aspects of the needs met by the product or service? Logical Aspects Emotional Aspects W Workbook

31 Name: Date: QUIZ CLASS 1 (Due Class 2) Instructions: This quiz covers the reading material found in Class 1. Study the reading assignments, then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. Which of the following is an activity associated with prospecting? prequalifying prospects asking the prospect to buy analyzing the prospect's situation exploring the prospect's financial goals and needs 2. Monty is deciding what to say to his prospect to set an appointment. To which of the following steps of the selling/planning process does Monty's activity relate most? Identify the Prospect Approach the Prospect Meet the Prospect Service the Plan 3. Pat Prospect tells Adelaide Advisor that she wants to bequeath a sizeable charitable contribution to her alma mater at her death. The contribution will be earmarked for an addition to the library that already bears her name. Most likely, Pat's motivation is a need for security affiliation esteem self-actualization 4. Sophia, whose daughter is 8 months old, has been reading a few books on 529 plans. In which stage of the buying process is Sophia? information search problem recognition evaluation of alternatives purchase decision 5. Liz shows up late to her appointment with Dawn, a complete stranger. Which of the following describes how Dawn will probably view Liz in light of her tardiness? I. "She is respecting my time." II. "She must be a professional in high demand." I only II only Both I and II Neither I nor II 200 Workbook W-31

32 6. Which of the following statements is (are) true regarding fear of rejection? I. Prospects usually are rejecting your product or service, not you. II. Rejection is an occupational hazard for financial advisors. I only II only Both I and II Neither I nor II 7. What advice would you give Mark, an advisor who suffers from a lack of motivation and a fear of rejection? I. "Ask yourself, 'What's the worst that could happen?'" II. "Think about your vision and mission. Then make plans to achieve them." I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 8. All of the following describe client-focused selling EXCEPT It cultivates mutually beneficial relationships with clients. It utilizes consultative and financial planning strategies. It creates solutions that reflect client goals, values, and needs. It uses advisor-centered, manipulative, high-pressure strategies. 9. All of the following are characteristics of a qualified prospect EXCEPT needs and values your product and/or service is suitable for your product or service has bought your product or service at least once can be approached on a favorable basis 10. All of the following are statements that a doer would make EXCEPT I know where I'm going. I am passionate only about making a lot of money. I focus on completing the tasks that will get me closer to reaching my goals. I take full responsibility for my failures. W Workbook

33 Name: Date: QUIZ CLASS 2 (Due Class 2) Instructions: This quiz covers the reading material found in Class 2. Study the reading assignments; then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. Which of the following would best describe an advisor's general market? health care professionals within the tri-state area Justine's friends and relatives the population within 15 miles of Justine s office women businessowners 2. Age, gender, education, ethnicity, occupation, income, and marital status are characteristics that define which of the following segmentation variables? geographic demographic psychographic behavioristic 3. Which of the following statements best defines a value proposition? a compelling reason offered to prospects to buy financial products and to buy them from you a private (not shared with prospects) declaration of how you want your target market to perceive you an alternate approach that a company can use to select and target markets. a criteria for evaluating the viability of a target market 4. Which of the following is the most important aspect of establishing the position of your personal brand? implementing appropriate prestige-building activities creating a logo delivering what you promised in your value proposition devising a targeted advertising campaign 5. Monroe sells life insurance and 529 plans. Which of the following statements regarding Monroe could be relevant for positioning his product? I. He is a former teacher. II. He meets income replacement and estate planning needs using life insurance. I only II only Both I and II Neither I nor II 200 Workbook W-33

34 6. Which of the following statements is (are) correct regarding selection criteria for a target market? I. You should assess how well your resources fit the market segment's needs. II. Aim to conduct market surveys with five to seven different market segments. I only II only Both I and II Neither I nor II 7. Which of the following statements regarding marketing coverage strategies is (are) correct? I. A market specialization strategy concentrates on marketing a product to multiple target markets. II. A single segment concentration involves marketing one product to a single market segment. I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 8. Javier wants to market to partners in law firms within the city of Philadelphia. While he doesn't know any lawyers personally, his office is in the same building as the Philadelphia Bar Association. All of the following statements regarding this market are correct EXCEPT It is a natural market for Javier on the basis of access. It meets the definition of a target market. It is a market segment. It is Javier's general market. 9. Your positioning statement should contain all of the following EXCEPT the identity of your target market the category (type) of your service (education, estate, retirement planning) how you are different from the competition a detailed description of your personal traits W Workbook

35 Name: Date: 10. All of the following statements would be appropriate for positioning a life insurance policy to young middle-class parents with less than $100,000 in assets EXCEPT What would happen to your family if you were not there? Would they have to change their lifestyle drastically? How would your absence affect your child's college education? How much more debt might he or she incur? Life insurance helps you secure your family's current lifestyle and finance the goals and dreams you have for your children. Life insurance helps you pay the cost of federal estate taxes so you can pass along all of your estate to your heirs. 200 Workbook W-35

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37 HANDOUT 2-1 In your small groups, identify and create a profile for one market segment you think is a possible target market for Joe Advisor. Look for two or more clients that have the same occupation, interests, employer, and so on, then do the following: Write a descriptive name for the segment. Describe what you suspect to be their common characteristics. Describe what you suspect to be their common needs. Note any formal or informal communication networks. Explanations: FYC = First Year Commissions RC = Renewal Commissions Referrals = how many referrals resulted in sales Assets are broken down by retirement and nonretirement investable assets CALL is a little league baseball organization Memories scrap booking indicates that the wife is involved in a scrap booking club set up by a consultant from Memories, a scrap booking company Joe Advisor uses the term charitable to indicate that the clients give money to various charities and help the local poor 200 Workbook W-37

38 Client Name 1. K&J Ormsby Value FYC $600 RC $60 Ref 2 Needs Surv Inc Debt Repay Ed Plan 2. M&J Sole 3. D&A Lamb 4. M&C Capets FYC $500 RC $50 Ref 3 Surv Inc Debt Repay Ed Plan FYC $550 RC $55 Ref 1 Surv Inc Debt Repay Ed Plan FYC $750 RC $75 Ref 3 Surv Inc Debt Repay Ed Plan Est Plan 5. M&W Thistle FYC $620 RC $62 Ref 3 Age 38/37 32/32 38/36 44/43 46/44 Occupation HH Income/ Assets (Retire. and Investments) Interests Professor WCU / Homemaker $80,000 $100,000 Ret $35,000 Inv CALL baseball, CA Rotary Club, Memories scrap booking Service Coordinator WC Luxury Car / Homemaker $85,000 $80,000 Ret $15,000 Inv CALL baseball, hunting, golf, Memories scrap booking Triggers New baby New Job, sister bought life insurance Family Status Married, 4 child (0,3,6, 9) Married, 2 child (3,6) Partner J&G Tombstones / Exec Assist ABC Co. $75,000 $65,000 Ret $12,000 Inv Golf, football, Gold's Gym member, CC Chamber of Commerce New house Married, 2 child (1,3) Comp Program, Fed Gvt / Elec Eng, Fed Gvt $135,000 $500,000 Ret $65,000 Inv Memories scrap booking Dropped to part time Married, 2 child (2,5) Surv Inc, Debt Repay Est Plan Sole Prop, Landscaper / Admin Assist, P&G Elec $110,000 $720,000 Ret $37,500 Inv CALL baseball, hunting, camping Risk Tolerance Moderate Moderate High Moderate High Personal Characteristics Teachable, planner, charitable Laid back, charitable, church Humorous, church, values family Laid back, planner New house Married, no children Loyal, teachable, charitable W Workbook

39 Client Name 6. J&T Babbit 7. M Eleby 8. E&L Coulter Value FYC $1,000 RC $100 Ref 3 Needs Surv Inc Est Plan Ed Plan Debt Repay FYC $500 RC $50 Ref 1 Future Insur FYC $400 RC $40 Ref 2 Surv Inc Debt Repay 9. B&S Moore FYC $500 RC 50 Ref 2 Surv Inc, Debt Repay Est Plan 10. D&M Nelson FYC $450 RC $45 Ref 3 Age 40/ /39 46/46 48/45 Occupation HH Income/ Assets (Retire. and Investments) Interests Accountant (CPA), AstraZeneca / Homemaker $105,000 $850,000 Ret $75,000 Inv Gold's Gym member, CA Rotary Club Corrections Officer, Colson County Prison $55,000 $30,000 Ret $20,000 Inv CA Rotary Club, Gold's Gym member Real estate agent, Century 21 / Nurse, Brandywine Hosp $105,000 $150,000 Ret $35,000 Inv Girl scouts, boy scouts, CC Chamber of Commerce Electrician, CC School Dist / Nurse, Brandywine Hosp $150,000 $800,000 Ret $150,000 Inv Boy scouts, CC Chamber of Commerce Surv Inc, Debt Repay Partner, Brandywine Optical / Beautician, ULookFine $100,000 $500,000 Ret $115,000 Inv CC Chamber of Commerce, CALL baseball Triggers Created will Engaged New job Created will Web article on life insurance Family Status Married, 2 child (3,5) Single Married, 2 child (6, 10) Married, 3 child (6, 21, 21) Risk Tolerance Moderate High Moderate High High Personal Characteristics Values family, analytical, loyal, planner Teachable, educated, charitable Planner, values family, loyal Partner in side business, planners Married, 1 child (9) Loyal, educated, charitable 200 Workbook W-39

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41 ACTION PROJECT 1 Selecting Target Markets (Assigned Class 2; Due Class 4) Purpose This action project builds upon the work of Sales Planning Project 1. Together these two projects are designed to introduce you to the target marketing process. In this project you will experiment with selecting a target market and positioning your personal brand. Specifically, you will practice evaluating and selecting target markets and developing a positioning statement. Assignment This project requires you to choose the two most promising market segments you identified in Sales Planning Project 1 and evaluate them as potential target markets. Next, you will conduct a preliminary assessment of each market segment using the selection criteria discussed in the text. Then, you will create and conduct a market survey, contacting two prospects from each market segment (a total of four interviews). You will be asking each of them to help you by participating in a survey and answering a few questions about their group or market. Finally, you will choose one of the market segments and create a positioning statement. Procedure For background information on this project, refer to the information in the sections, "Select a Target Market" and "Position Your Personal Brand and Products". 1. Select two market segments from Sales Planning Project 1 that interest you the most. 2. Do a preliminary analysis of both market segments using the three selection criteria described in the text. Record your analysis in the tables located on Report Forms 1 and Review the information you have gathered. Consider what you feel you need to know in order to more accurately assess each market segment. Then, create your survey questions (see pages 2.28 to 2.29 for ideas). List all possible questions on a separate piece of paper or in the space provided on the next page (this does not have to be turned in for grading). Then, prioritize the questions and select the top six. Write them in the Question column of the table located on Report Forms 3 and Identify five prospects from each market segment. You will only need to interview two of the five, but identify five in case you cannot reach one or two of them. Thus, you will interview a total of four prospects, two from each market segment. 5. Call each person to see if they would spend minutes answering several questions about the group. Make sure they understand that your purpose is to gather general information about the group from their personal perspective, not to sell them something. 200 Workbook W-41

42 Note: For accurate results, you would need to conduct several market surveys for each market segment. The purpose of this project is to allow you to "test drive" the target marketing process. 1. Record your notes from each discussion using a separate sheet of paper for each. Then, summarize your findings in the tables on Report Forms 3 and Discuss what you will do with each market segment. Will you target one, both, or neither? Give reasons for your decision (question 3 on Report Form 5) 3. Finally, select one of the market segments and describe how you will/would position yourself in it by writing a positioning statement (question 4 on Report Form 5). List of Possible Market Survey Questions: W Workbook

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49 BREAKOUT CLASS What are your favorite sources of prospects? Why? 3-2. What are your favorite prospecting methods? Why? 3-3. What steps do you take to establish centers of influence? 200 Workbook W-49

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51 Name: Date: QUIZ CLASS 3 (Due Class 3) Instructions: Study the reading assignment from Class 3, then circle the correct answer for each of the following questions. Each question is worth 10 points (100 points total). 1. In which of the following situations is Rich a nominator? Rich asks his client, Barb, for referrals. Rich approaches Ivan to gain access to the Hispanic community. Rich's best friend, Tom, gives Rich's name to a stock broker. Rich tells his life insurance agent to call his brother, Mitch. 2. All things being equal, which of the following would be the best prospect for Glenn? his aunt and uncle who live next door a co-worker of his friend, Rich Mookie Blaylock, an orphaned account owner the lady working at the meat counter at Food Mart 3. To determine the value of each telephone call you make, you should do which of the following? Divide the number of phone contacts you made by the total number of appointments. Divide the total amount of commissions earned by the total number of telephone contacts. Divide the amount of first-year commissions earned by the total number of sales. Divide the number of appointments made by the number of qualified prospects. 4. Which of the following sources would provide the strongest start to a relationship with a prospect? a personal introduction by a client to the referral asking a client for referral names at an annual review a referrer gives you qualifying information such as contact information, interests, hobbies, and family situation of a referral using the list approach with a center of influence 5. Which of the following statements is (are) correct regarding prospecting? I. Prospecting sources are places where you will find prospects. II. Prospecting methods are ways to identify and select individual prospects. I only II only Both I and II Neither I nor II 200 Workbook W-51

52 6. Which of the following statements regarding networking is (are) correct? I. Advisors must be patient and expect no immediate returns. II. Advisors need to see networking from a short-term perspective. I only II only Both I and II Neither I nor II 7. A good prospecting system will allow you to do which of the following? I. Identify which prospects you should contact first II. Evaluate and prioritize prospects I only II only Both I and II Neither I nor II READ THE FOLLOWING DIRECTIONS BEFORE CONTINUING The questions below differ from the preceding questions in that they all contain the word EXCEPT. So you understand fully the basis used in selecting each answer, be sure to read each question carefully. 8. All of the following statements about the referral process are correct EXCEPT You borrow the trust the referred lead has in the referrer. In their highest form, referrals are unsolicited. You eliminate the need for making telephone calls. The most common cause of referral reluctance is fear of rejection. 9. All of the following people would be potential centers of influence for Larry EXCEPT his wife's friend, Mary, who is active in the local Chamber of Commerce a local basketball star, Harry, whom Larry barely knows Barry, the president of the Rotary Club to which Larry belongs his son's Boy Scout leader, Jerry, who is a well-respected attorney W Workbook