When a Firm's Competitive Position Is Weak, and Account Opportunity

question 38

Multiple Choice

When a firm's competitive position is weak, and account opportunity is low, the selling effort strategy should be to:

• A) perform additional analysis to identify accounts where the sales organization's competitive position can be strengthened and invest heavy selling effort in these accounts.
• B) provide minimal selling effort to accounts and replace the personal selling effort with advertising.
• C) invest heavy selling effort in accounts.
• D) invest sufficient selling effort in accounts to maintain current competitive position.
• E) provide minimal selling effort to accounts and use less costly forms of marketing to replace selling efforts on a selective basis.

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Definitions:

AAA Corporate Bonds

High-grade bonds issued by corporations with the highest rating of creditworthiness, indicating very low risk of default.

Basis Points

A unit of measurement used in finance to describe the percentage change in value or rate, equal to one-hundredth of a percent or 0.01%.

Market Interest Rates

The rates of interest charged on loans or paid on deposits, determined by the demand and supply of credit in financial markets.

Municipal Bonds

Debt securities issued by municipalities to fund public projects like schools, highways, and infrastructure developments, offering tax-free interest income to investors.