Prospecting Methods and Credit Guide for Finance and Mortgage Broking | FNSSAM403

This assessment covers the prospecting methods like cold calling, reference selling, and asking for referrals. It also explains the importance of Credit Guide for Finance and Mortgage Broking. The assessment helps in identifying opportunities for cross-selling products and services with FNSSAM403 Assessment. It includes short answer questions and a written test. The assessment is a part of FNS40815 Certificate IV in Finance and Mortgage Broking. The assessment is suitable for students with 3 years of experience in the Automotive industry.

FNSSAM403 Prospect for new clients
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Student details
Course name FNS40815 Certificate IV in Finance and Mortgage Broking
Assessment name FNSSAM403 Assessment
Surname SINGH Given name GAGAN
Address Postcode
Email [e-mail]
Phone [phone] Phone (other)
Current occupation Finance & Insurance Manger
Industry Automotive Years in industry 3
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FNSSAM403 FMB Assessment
CREDIT TRANSFER
You may be able to claim credit transfer for a unit/s of competency that you have previously
completed with AAMC Training or another RTO. If you have been awarded a record of result or
statement of attainment for any of the units detailed below then please go to the Credit
Transfer tab in your Learning Centre and follow the prompts.
This assessment relates to the following units of competency:
 FNSSAM403 – Identify opportunities for cross-selling products and services
Please refer to AAMC Training’s full Recognition Policy for further details.
Task 1 – Short Answer
In order to successfully complete some of the tasks in this assessment you should have access to
the following documents. These are available in the AAMC Training Useful Resources or you may
wish to find your own/use your company documents.
 Credit Guide – important facts about the business and products you provide
 Adviser Profile – this may be included in your credit guide and could be simply your licence
number as the services you provide are one in the same as your licensee
 Client Needs Review – for client data gathering
 Preliminary Assessment
Questions
1. What do you believe to be three good prospecting methods and why?
1 Asking for referrals This one of the most treaditional tactis to use
refrals from the customer or client parties.
Asking for referrals is the qualified process to get
qualified leads. A lead is that whenever a
customer is satisfied with the customer service
they refers the same product or service to the
other clients. Further, as per the reports this is
the most usefull method to gain communication
and connection to more customers, and it also
strengthen the relationship of the customers.
2 Reference selling A reference selling is selling the products or
services to the refered customer. This means
that the selling procedure is organised on
referral of someone to consume tat perticural
product or service. In the proscpecting methods
there are two specified challenges that are faced
by the sales persons, the challenges are 1.
Getting through the ultimate decicon makers
and 2. establishing the trust and credibility with
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buyers. Refrence selolung is the process trhat
overcome the challenges. If the conceren having
a customer who is satisfied with the service that
is rendered to them are alegdly making other
probable customers to avail the same goods and
services.
3 Cold calling Cold calling is prospecting game plan that is
asking fro referalss as well as utilising tne
referals of salling principal activities. The
acceptance of the cold calling is because of its
most validating in lead generation method in
sales.
2. In your own opinion, what are some areas, which are important to say about yourself and your
business when creating a Facebook or LinkedIn profile? Why would correct and professional
information be important to your organisation?
Answer:
I personllay belive that for creating a profile in facebook and linkedin it must convey aproper
image what actualy I am not what others thinks anout me. In addition the effect of such
images will be resulatant on the subject that are under stated below.
In marketing and promotion, the business houses and the marketing agencics are following
the trends. It is the basic marketing principal that the business needs marketing where the
huge number of people are engaged. In addition to that the business needs to access the
traffic.social meadia technologies has changed the market enourmously. There for creating a
good and accessable image the companies and the business organisations are creating the
profiles in Facebook and Linkedin. The profiles are the artificial image of the organisatins from
where the various sources and the product of the company that they are offring to the public
is gathered. In addition to that the profile will contain an instant support service to the visitors
to make them feel comfortable and making a good image to the socity. Further, the company
needs to provide all adequate information regarding the products and the organisational
activities.
What ever is available in the internet it not fully correct, rather it is pertialy correct. but the
users of it takes all the information as correct. Therefore, the organisation needs to ensure
that what they are conveying or providing must be correct. Beside that, the information should
have sources. A solid and relevant data will provide the users as it will be contributory in the
goodwill unless it will ruin the confidence of the users regarding the image of the organisation.
3. What is cold calling? Is cold calling an effective prospecting method? Explain your answer.
Answer:
Cold calling is prospecting game plan that is asking fro referalss as well as utilising tne referals
of salling principal activities. The acceptance of the cold calling is because of its most
validating in lead generation method in sales.
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The reason for effective prospecting method as this process generates enumerable customer
support and sales. In the telephonic connection the relationship with the new customers are
established and the companies are earning huge revenues from that. In the cold calling
process the sales person and the marketing executives approaches the potential customer
over the telephonioc conversasion. In addition to that the companies are nitifing the customer
the featears and the qualities of the product and the services thata they are offiring to the
customers.
This process elaborated the needs of the customers and the probabilities of the sales.
Further, the customers are largely developing the trustship of the brand and the product. This
helps in recognising the revenues of the firm.
4. How would you build a relationship with a client through cold calling?
Answer:
In the cold calling technic, that I will sell the the products by calling random customers to
there phone numbers and elaborating the services thet they render to its clients. In addition to
that the companies are getting more involved with the touch of soul of the potential
customers and understanding the needs of the customers and providing the goods and
services according to the needs of the customers in the best possible way. It is the objective of
my work to condem the threats of the customer and providing effecent service.
5. In your opinion, why would the following areas of information (found in the Credit Guide) be
important for a new client to understand? How could this information protect all parties?
 your role and responsibility as Credit Advisor
 the role of the organisation
 the identity of and information about the Credit Licence holder
 the range of services provided
 all costs, fees, commissions etc. associated with the transaction
 the procedures for handling complaints and disputes.
Answer:
In the business process a large amount of the sales are done on due basis. This means that
the customers are selling the goods to the customer on credit and reliasing them on a later
date. In some cases the debtors of the company is failed to provide the due amont or having
negligence to pay the sum. In that case the company adjoint Credit Guide in the system who
will help in reliasing the monet from the defaulter. In that case the company needs an expert
credit guide.
 Role and responcibilites of the credit advior.
The roll of the credit advisor is to collect the dues thast the compaies ows from the debotors,
who are neglecting the paymants towords the organisation. The responcibilities credit guide is
to collect the dues from the credit customers. In addition to that the credit guide is required to
make arrengments of the financial side of the company to ensure thet the accounts are upto
date. This will help the client to understand the duties of the credit advisor.
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 Role of the organisation:
The role of the organisation is to collect the dues from its customer in a timely manner and to
associate the needs of the company. Whenever the company sale the goods to its customers,
the companies expects to relise the dues in a particular periode. The cash budget of the
companies are prepared on the basis of realising the same. The company needs to collect the
dues so that it could maintain a certain flow of cash and helping the organisation to collcet the
dues. The role of the organisation means that the organisation must convey the service that is
liable to the client is perfecty dealt.
 the identity of and information about the Credit Licence holder
the credit guide needs to be qualified and a licence holder so that the company can be
asure regarding the capability of the licence holder. The licence must contain the
qualification staistictis and the personal information of the credit guide. This will help the
clicnt to understand the credibility of the assessor.
 the range of services provided:
The range of service that are to be provided by the credit guide to the company dpends on
the contractual agreements of the company and the credit guide. The service that is
provided by the credit guide are as follows:
 financial support service
 managing the accounts,
 Advise of best collection procedure.
 Maintain the sufficiency of the allocable cash funds.
 all costs, fees, commissions etc. associated with the transaction:
the credit guides are not the regular employees of the company rather they are associated
service provider who works on contract basis. The companies make contarcts with the
credit guides on performance or work basis. The credit guide works onn commission basis
in major cases. The rates of commission varies on the cercumstancess. Genaraly the
commission stands from 2% to 5% but this could be different as per the agrrements.
 the procedures for handling complaints and disputes.
If there are any disputes of the company and its debotors then the credit guide works as a
mediatory adjustment guide to solve the grivencess of the concern parties with out being
pertial to any one. The credit guides ascertain the root of the problem and sloves the areas or
errors by consultation and discussion.
6. Why do you believe is it important to encourage prospective clients to express their needs and
goals when completing a data collection?
It is bealeved that to delever the needs of the clent it is neccassery to understand that
collected data are collected to understand the needs and the neccecisties of the client. The
data base is the information locator. The companies needs to provide what the customers
demanding not that what the company wants to sell the customer. The datas are collected
from the various sources. In the e-technology the taste and preference of the company is
collected from sending cookies. In manual way they ask to the customer and the cliecnts
“what they demands from the company”. When the I could understand the needs of the
customer they only provide that what the customer demandes.
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7. Your client Mary Jane has advised that she would like to purchase a home worth $400,000 and
you have worked out associated costs of around $30,000. She has a deposit of $150,000. She
has spoken to friends and are concerned that she may have to pay mortgage insurance which
she hears can be a very high cost.
Complete a quick LVR calculation and explain the outcome to the client. Why is it important to
respond clearly to the client in this case? What could you do to make sure the client has
understood what you have advised?
Answer:
In the give case the calculation of the LVR or the Loan to value ratio is 70%. Whchi is not
baybong the marging of 80%. The details is discussed here under.
In the given case Mary opts to but a residential house worth $400000 with a associating cost
of $30000. The current availavle deposite of the client is $150000, the remaining money will
be collected from the way of mortgaging the property. The LVR will be the amount that Mary
wants to borrow from the financial institution deviding the actual value of the property. In treh
given case the Mary require $ 280000( $ 400000+ $30000 - $150000). Then the LVR will be
$280000/$400000 = 0.7.
The other issue of the client is that Mery is reluctant to take the mortgage insurance because
of its high cost. Nevertheless, Mery needs to undersatnd the importance of the insurance of
the mortgaged policy. It is acceptable that the policy amount is very high but the clent needs
to understand the associating risk factor. The financial cercumstaces are not collectable and
enforeciable by the client. In the worst case the insureance policy will provide shelter to the
client.
8. Your client Mary Jane is hesitant about completing some of the information in the client needs
review. As an Adviser, you must fully complete a client needs review for a number of reasons.
What is a probing question you may ask the client to determine their resistance? What are two
points you may highlight to the client to try and overcome this situation in an appropriate
manner?
Answer:
In the given case I have identified that Based on the cercumstacess the client is not ready to
accept to purchase a mortgage insurance policy. In that case the I could ask the following
question to the client.
1. What is the cause of recultance?
2. What is the source that comes so sure to the client regarding the
suumption of such decicions?
3. What is the sourece to overcome the deficiency of the client?
The I will adives the client to understand the situation in the worst cases. The policy purchase
will require high cost but the benefits that the company is paying aginst the fees is very high as
compared to the policy purchasing amount.
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9. A prospective client is hesitant to use you as their broker because they are already a client
with a competitor. What interpersonal techniques and communication skills would you use to
overcome this?
In the given case I have identified the deficulity of the client is that the same organisation is
conducting the bookkeeping service. In that case I must convey personal gaurentee,
andsupport to the client. Further I must asure that the confedeciality will not be hampered at
ant cost.
The secrecy of the clents cannot be disclosed in any manner to anyone. The company may
depend on the fairness of the broking agency. If the company is hesttant then the company
may chouse other broking agency. If they are determine to chouse the particular brokeing
agency then the company and the broking agency needs to come together and the solve
the grivences.
10. You have now gained Mary Jane’s consent to move forward with fully completing the fact
find. She has advised that further to the basic information provided above in question 7, she
is buying the home to live in and she is a single parent on a good income in long term
employment. Mary Jane would like to pay the home off early but would also like some spare
funds for a holiday over the next 12 months. Protection of the home and her child in case of
job loss or becoming ill is highly important. Mary Jane would like to purchase another
investment property down the track to provide for her retirement. Prior to a marital
separation, Mary Jane and her ex husband had paid off another mortgage. Mary Jane has a
clear credit history. The client may also like a 100% offset account as she had one in the
past and it worked well to pay the loan off quickly. Mary Jane would prefer a major bank as
she is concerned a smaller provider may not have any branches in her area.
Whilst it would be prudent to complete a fact find under normal circumstances, for this
exercise we will ask you to complete the table below. In the table below highlight and record
the client’s goals, concerns and creditworthiness (why the lender should consider them for the
loan).
Goal Concern Creditworthiness
Paying of the EMI’s ( Easy
monthly Installments)
Bank and financial
institutions.
100 %. This assessed on the
basis that the clent has paid
the previous loan outstanding
in the provided time in
addition to that it signifies
the client is not reluctant to
pay the dues.
Securing holiday funds Personal savings, and fincial
institutions.
Depnds on the deposits and
needs of the client.
Health To secure the healty of the
parent and the child. Health
insurance policy required to
be purchse.
100%
Retirement policy. Investment in other property
to secure the retitement.
80%. The credit worthiness is
detoritaed becoause of the
huge loan expectation and
presents loans.
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11. John has asked you for some advice on buying a car for personal use worth $40,000 over a
five year loan term. You have completed his client needs review and must now complete some
research to present John with appropriate finance options. Research and present two products
that may be appropriate for John (you can use a number of sites including rate city to
complete this activity).
1 Bank fiance from home loan 9.59% p.a. from the banks the interest rate are stipulated
and conveying a larger portion of the areas to the flesebility.
2 Private financial institutions 10.36% p.a. the key benefits of the private financial
benefits are the flexibility and the easy processing.
12. Using a search engine, research “Ten tips to protect your customers’ personal
information”. Select one of the 10 points and in your own words briefly describe the
purpose of this step.
Answer:
Firewall:
In the given case the personal data can be secured by the organisqation by making
appropriatre arrengments to restricted access to the information. This means that the
company musy create dsecurity fairewall in the database so that only the authorised
persons can access the dara base. Further the data base shuld be secured by a flowless
sowtware so that the hakkers are unable to control the data base. In the recent times the
data are secured on the clowed storage device. Therefor it is easier to get access from
anywhere and everywhere. A password base protection syatem is required to be imposed.
13. You have completed a fact finder, costing analysis, and LVR calculation for a client and
have worked out the due to affordability issues, based on the living expenses they have
provided, the client is unable to borrow the required loan amount. They would be able to
borrow a loan amount of $5,000 less. Referring back to your client needs review, what
additional question/s would you ask the client?
Answer:
In the given case the financial insititutios provides loans to its clients depending on some
ratios and affortibility of the client. The bank can provide the desired loan to the client only
if the clent having adequacy to pay the debt instalments. In the given case the borrowing
is less than the affrtability. There are two possible aways to deal with the situation.
1. Either the client has to for gone some benefits.( reducing the
tarevelling amount)
2. Or have to take less loans.
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In the given case the advisor may ask the client to reduce the laon liability or to frogo some
other benefits. Further the client is advised to decresed the cost of leaving to save a single
penny to pay of the dues.
In that case advisor may ask the following to the client:
3. How mery will arenge the deficite?
4. Is mery able to reduce the benefits? If so what are those?
14. After you have completed the product research how would you prepare for the next
contact?
There are various ways to find the probable customers; the contact can be either own
motion or the customers are to be approached. The probable ways are refrence, public
promotion, customer refrance and others.
Schedule of work: in this a sechedule of wark needs to be assessed in the given case to
understand the work programing in how to and when to contatct the clients. In that case
the tye program will guide the clints times.
Loan mortgate letters: a proforma letter with adequate information are to be set and
deleverd through relevant chanel so that the sales person could obtain the potential
customers.
Task 2 – Written Test
1. List six buyer motives and in your own words, analyse and discuss issues relating to two
of them.
1 Profit of gain This motive regulates that the buyer determines
weather, what the buyer is consumeing is either
profitable or not. In economics the marginal utility is
determined is determined what the consumer wants to
pay for a particular product or service and what actually
paying. If The derivation is positive then it will be taken
as profit.
2 Fear of loss This motive regulates that the buyer determines
weather, what the buyer is consumeing is either
profitable or not. In economics the marginal utility is
determined is determined what the consumer wants to
pay for a particular product or service and what actually
paying. There is no secluded measure of profit or loss. it
depends on the consumer. If the utility that is arised is
lower than what the consumer expected then it will be
regarded of loss.
3 Comfort and pleasure
4 Avoidance of pain
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5 Love and affection
6 Pride and prestige
2. Using conflict resolution and persuasion techniques, write a response to the following
examples of buyer resistance:
Not interested In that case if the buyer is not interest the frist ask for suggestion
the product can be modified ?
Why the customer seems to be not interested.
Send me some
information
In that case the buyer has partial interest towords the product or service. In that case the
buyers needs to be notified regarding the other information of the product. And convence
the customer to purchase that.
No money –
Can’t afford it
This is a difficult choise. In that case either the buyer is denaying or realy can not afford the
products. In the second case if the same is asked from a large number of buyers then the
company needs to restate the price.
You’re wasting
your time
It is a clear intention of the buyer that the buyer has no interest in the product. In that case
the sales man should leave the buyer. In this case if we forthoer approaching the buyer it
may redundant the goodwill of the organization.
3. How do you successfully undertake cold calling? Explain the process from start to finish.
In the cold calling process the customer are made on the telephonoic communication. A
successful cold calling can be established by when a good number are buyers are responding
by it. For a succefull cold calling the following process needs to be obtain.
In the cold calling procedure, the company hire customer or sales executive, set up,
and arranges the numbers of expected customers from the data derictory and the database.
The call is being sent to the customers and elaborated the qualities of the product. The
service or this procedure comples after the reciving the order from the customer and
delivering the same. The e-mail fecility is working on the same concept.
4. Read the following article, and answer the questions below.
Information in this article may not be based on current market
statistics and is for assessment purposes only
Why Melbourne’s properties will keep on rising
In Australia, over some 120 years or so of not quite so accurate statistics, property
prices have risen at an average compound rate of 10.4%, very slightly ahead of
England. Again, property prices have doubled every 7 years or so despite droughts,
wars, changes of government, interstate and overseas migration, interest rate
movements, exchange rate movements, changing rates of unemployment, CPI
movements, etc.
Property cycles
When one takes a short-term view of property price movements, one can get confused
by apparently contradictory statistics. However, if you understand that property prices
move in 7-10 year cycles, the picture becomes a lot clearer.
Let’s take one obvious example. The movement in NSW and Victorian property prices
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tend to be counter-cyclical to Queensland prices (especially South East Queensland).
This is heavily influenced by what is happening in the NSW & Victorian economics which
encourages migration to Queensland, and at other times in the cycle, people returning
to NSW and Victoria.
So, when Queensland prices are moving ahead strongly (because of this additional
demand from interstate migration), prices in NSW and Victoria exhibit slower growth,
and vice versa.
A study of cycles shows that the Sydney market is much more volatile than, for
example, the Melbourne market. Sydney prices rise faster but can also experience
significant falls in each cycle – Melbourne prices tend to rise rapidly (+25%, +20%) in
the first two years of an upturn and then more moderate increases of 3-7% in the
remaining years of the cycle till growth spurts again.
Relative prices in each capital city
Over the last 100+ years in Australia, each of the six State and Territory capitals have
established a fairly stable ranking with each other in terms of their median house and
apartment prices.
Traditionally, Sydney has always been the most expensive followed by Melbourne,
Canberra, Brisbane, Perth, Adelaide, Darwin & Hobart. Increases in prices in each of
these markets, for whatever reasons (mining booms, economic recessions, rural booms
and droughts etc) can cause some temporary shifts in the relative standing of each of
these cities. But these are normally temporary shifts and the long-term standings re-
assert themselves as the various cycles evolve.
continued on the next page
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In the last 3-4 years, Perth & Darwin prices (and to a lesser extent Adelaide and
Brisbane prices) have increased dramatically due to the boom in mining and oil
company revenues and increased demand for labour (and therefore housing) in those
cities. Sydney and Melbourne prices, while still rising, have slipped behind these other
cities in terms of relative price increases.
Basic demand & supply
The ever-increasing need for housing in Melbourne and Sydney is not based on
temporary boom factors but on underlying (substantial and permanent) shifts in
population. Each city has a strong underlying economy, which is not dependent on one
particular industry. In addition, estimates of Melbourne’s population for 2020 is over
four million people (an approximate increase of 25% in 13 years). This is huge in terms
of population increase and the need to accommodate these extra people.
The reality is that Melbourne’s building industry cannot build more than about 140,000
accommodation units (houses and apartments) per annum due to shortages of qualified
tradespeople of all types and shortage of suitably zoned land and the building permit
process. Demand, on the other hand, is estimated at approximately 170,000
accommodation units per annum. Added to this, State and Federal governments have
all but completely removed themselves from supply of affordable housing.
The inevitable consequence is that house and apartment prices will continue to rise
(quickly over the next 2-3 years and then more moderately). And rentals, which are
already moving up quickly, will continue to rise ahead of CPI.
Relativities with other capital cities will be restored by above average price increases in
Melbourne and then Sydney.
Interest rates
The spectre of a return to 16-17% interest rates (experienced only once in Australia’s
history and then only for a few months in 1990) has loomed large in many would-be
investors’ minds. This fear is understandable but not justified.
Interest rates are now approximately 1-1.5% above the lowest they have been in the
last 40 years. From an economist’s viewpoint, they are currently above the theoretical
long-term average that they should be (arrived at by adding the present CPI increase
and the additional incentive needed to be offered for people to save and lend their
money to others – historically 1.5-2.0%).
Currently rates are above their theoretically justified level. This is not to say that the
Reserve Bank will not use one or even two more 0.25 per cent interest rate rises to send
a message to the market not to get “overheated”. Even two such increases will leave
interest rates within 2% of their 40-year lows. A 0.25% per cent increase in the average
mortgage of around $220,000 is equivalent to an extra $10.60 per week ($45.80 per
month) in repayments.
By comparison, a 10% increase in the median house price in Melbourne is equivalent to
an $817 per week ($3542 per month) increase in the owner’s wealth.
continued on the next page
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Rents
The level of rents (determined by supply & demand) and the value of the properties to
which they relate establish the rental return per annum. The rental return rises and falls
at different times in the cycle as real rents and property prices move up at different rates.
Rental returns on residential property tend to vary between about 3.5-4.0% and 5.5-6.0%.
Melbourne’s rental returns have moved very close to the top end of this range and are
showing every sign of continuing to rise further as vacancy rates continue to show a decline
from over 4% to a little over 1.1% in most parts of Melbourne. The city’s long-term
imbalance between the new accommodation that can be supplied and the level demanded
by increased population/increased member of new household formations noted above,
allows the actual level of rents to continue to rise quite quickly. This will attract new
investors into the residential house and apartment markets, which will, in turn, keep
pushing prices up.
Housing affordability
There is much debate about whether houses have become “unaffordable” for young
couples. Much research has been done on the number of years’ salary it takes to buy
the “average” house, and the proportion of income taken up by mortgage repayments.
This is a very complicated issue, which has received a lot of publicity during this faux
election campaign. Despite all the rhetoric I have seen no viable recommendations
come forward and even less political commitment to solving the problem.
My view is that Australia (which has enjoyed the highest rate of home ownership in the
world) will slip in the world rankings. Those who have parents who can help them will
still be able to buy a home (especially with abundant bank credit persisting) while those
who don’t may be consigned to a life of renting. This will further stratify Australian
society with the rich getting richer and the poor getting comparatively poorer. This,
combined with governments removing themselves from constructing accommodation,
will put more reliance on a healthy private rental market and make it suicidal for
governments to remove or reduce investment incentives.
Where are we now?
The above factors of:
 Over 900 years of compound growth in residential property values;
 Where Melbourne prices are in the current price cycle;
 Where Melbourne prices are vis a vis other capital city prices right now;
 The short, medium and long term population forecasts for Melbourne;
 The building industry’s restricted capacity to build new accommodation units;
 Where we are in terms of interest rates v capital growth;
 The continuation in the rise in rents and the very low vacancy factor; and
 The lack of any coherent way of easing the pressures on accommodation
5.
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FNSSAM403 Prospect for new clients
a. Explain three points from this article that would appeal to/encourage investors seeking
to buy more property in Melbourne.
1 Rent is very high, a major portion of income is transferred for that cause.
2 Rate of interest is as low as 1-1.5% or more.
3 The investment cycle will be contributory in the additional income because of the
demand and supply.
b. Why would it be prudent for a person to hold on to property over the long term?
Answer:
A propery might be, aintained for a long term either the owner is using the propery or
made investment for retirement benefits. In the end of the journey or aged time the
working ebility is detoriated . therefore in the work time everyone intends to collcet a
savings for the present income to get a future benefits it the retirement period.
c. Why will housing continue to become unaffordable for first home buyers?
For the first time buyers the lender of the money needs collateral security or charges
higher rate of interest.becouse of the the new home buyers facing dificulities. The
lenders are preety much insecure about getting the money back.
5. List six different prospecting methods and in your own words, compare and contrast two
of them.
Prospectin
g method
Explanation (only two required)
1 Linkedin
Prospecting
2 Asking for
Referrals
3 Yelp
prospecting
4 Cold Emailing The cold emailing is simmiler to the cold calling technic as discussed
earlier. In that, process a structured email is conveys to a large
number of email users and the potential cusomers are identified.
5 Attending
relevant
Events
Attending relevant events means attenting the promotional events. In the promotional
event, the information and the characteristic of the product to lure the customers interest
in the product. This is comparativle better option to the cold emailing as the sale person
or the executives can provide instant feedback.
6 a. Seeking out
partners
6. Name at least eight different marketing techniques and in your own words describe the
pros and cons of three of them.
Marketing
Techniques
Pros Cons
1 Paid advertising Quality advertising. As the
advertisement will be
constructed and influencial.
High cost. Now a days the cost
of advertisement on the
hordings and the newspapers
and the electronic media is
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FNSSAM403 Prospect for new clients
very high.
2 Cause marketing Marking focus on a particular
area or cause. This means
that the organization wants
to influence a specific area of
marketing.
Specifiacaly advertising. This
means that the organization
has many scope but ionly
concentrating on a single
matter.
3 Relationship
marketing
Builds relationship Create deferenciated customer
relation.
4 Undercover
marketing
The product is valued. This
means the that the marketing
is conveying either in house
devolpment of own goods or
spreding rumors of
deffecency of the competitive
product available in the
market.
Threat to be uncover, and this is
unethical. This process is moraly
wrong as spreding rumors of the
deficiency of the competitors is
not justifiable at any sence.
5 Word of mouth Speedy transaction. Less reliable.
6 Internet marketing Speedy circulating. Less dependent.
7 Transactional
marketing
Convenient process. Chance of misrepresentation.
The buyer will get another thing
and the seller wants to
represent other thing.
8 Divercity
marketing.
Improve the brand image. If the buyers comes to know the
difference the chance will be low
to stuck in the market.
7. Access the following website: https://www.finder.com.au/equipment-finance
Explain the difference between a hire purchase and a novated lease. Analyse the strengths
and weaknesses of the products and services offered.
Hire purchase Novated Lease
In a hire purchass, a person intended to buy
an asset has limited money. In that case, the
buyer pays an initial amount as
downpayment and the remaining are paid in
instalments with interest.
A novated lease the right to use is trnasfered to the
lease but the ownership is not transferred.
Lease is novated with a three way agreement
between an employer, employee and the finance
company, under which the employee, who
has leased a vehicle from the finance company, the
financier and the employer agree that the
employer will take on the employee's obligations
under the lease.
Strengths Weaknesses Strengths Weaknesses
The buyer can use
the asset by paying a
small amount and
the remaing payment
are paid at the
utilisation of the
asset.
In case of defould in
payment, the asset
can be repossed.
User uses the product
for a substantial period.
Rhe ownership of the
product is not
tarnsered.
8. Research “The six phases of the buying and selling process”. List the steps for both the
buying and selling processes.
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FNSSAM403 Prospect for new clients
Buying Selling
1 Problem recognition prospecting
2 Evaluate alternative preparation
3 Purchase decision approch
4 Purchase of product presentation
5 Price Handling objections
6 Post purchase evaluation closing
9. What legislation do you need to comply with when using the following prospecting methods:
Cold calling The fecility must contain an option for do not call list. This is controlled
by telephone consumer protection act of 1991.
Email The email fecility must provide the source of geeting the email id, and
the option to stop further such mail. Generl data protection regulation
10. List at least three types of information you need to provide your client with regard to:
a. your role as an adviser
1 Ther range of the financial service provided
2 Licence they hold and the trainging/qualification they have.
3 Responcible lending under the NCCP regulation
b. the role of the organisation you represent.
1 The identities of and information about the licence holder
2 Coplience with the NCCP regulation holders
3 Tarining and devolopmengt of advisior.
11. List five questions you believe to be most important to ask a prospect to ensure that they
have a good understanding of what you provide.
1 How is it?who it has helped you?
2 What is unique in the product?
3 Why you chouse the particular product?
4 Is the product quality justifiable?
5 How can we improve the product?
12. Access the “Client Needs Review –Business & Commercial” document in the Appendices or
Useful Resources Section on the AAMC Training Member’s Area.
a. What interpersonal skills would you use to encourage the client’s to express their
needs and goals?
Answer:
Interpersonal skills means the inhearent skills of the sales person or the representative.
In that case I must support the verbal representatinon by the phhisical one. It menas
my verbal orentaing must be supportive with my body language. I must convey the
organisational image therfor the interpersonal skill of the person will contribute in the
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FNSSAM403 Prospect for new clients
image of the company. In addition to that the company will be able to delver a better
customer support to its clients.
b. Why is important to understand a prospect’s level of financial understanding?
Answer:
In service provider needs to understand the financial condition of the client, on after
understanding the financial position of the client then only the service provider can
provide the product that is demanded by the client in a limited budget.
13. Why is it important to protect the client’s financial information?
Answer:
The financial information of the client is a confedential data that should be kept secure.
Further is case of any loss of the substantial data the client may have to suffer losses.
14. Why is it important to have a prospecting database?
A prospecting database will eanbel the company to reach a large number of potential
buyers.
15. How does a prospecting database help you prepare for the next contact?
The help of the prospecting database knows the next customer to the company to
whom they are approcing. This will surely contribute to gain new customer.
Assessment V2.5 © AAMC Training Group A17