In January 2011, Coca-Cola and Pepsi Agreed to Reduce Their

question 21

Multiple Choice

In January 2011, Coca-Cola and Pepsi agreed to reduce their yearly advertising budgets by $1 million each, and neither firm reneged on the agreement throughout the year. In January 2012, Coca-Cola and Pepsi each announced that their company 2011 profits had increased by $1 million. Which of the following is a likely explanation for this increase?

• A) A new entrant in the market caused Coca-Cola and Pepsi to lose substantial market share.
• B) The government imposed a punitive tax on both firms for producing a beverage that is a danger to public health.
• C) The firms had previously been in a prisoner's dilemma situation where one firm's advertisements were effectively canceling the other firm's advertisements.
• D) Coca-Cola drastically reduced the price of its soda relative to the price of Pepsi's soda.
• E) Pepsi drastically reduced the price of its soda relative to the price of Coca-Cola's soda.

Comprehend the sales management process and its interrelated functions.

Grasp the concept of sales plan implementation and evaluation.

Understand the roles and objectives of personal selling and sales force management.

Distinguish between different organizational structures for sales forces (geographical, customer, product/service).

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Definitions:

Cross-Cultural

Relating to or comparing the cultures of different societies, often to identify shared traits or significant differences.

Universal

Something that is applicable or common to all cases, situations, or beings without exception.

Culture-Specific

Pertains to traits, customs, conventions, or practices that are unique or particularly characteristic of a given culture.

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture.