When a Firm's Competitive Position Is Strong, but Account Opportunity

question 167

Multiple Choice

When a firm's competitive position is strong, but 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:

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical.

Marginal Cost

The increase in costs from making an additional unit of a product or service.

Long-Run Equilibrium

A state in economics where all factors of production are fully adjustable, leading to a situation where no economic agent has an incentive to change its behavior.

Monopolistic Competition

A marketplace setup in which a wide range of companies vend products that are comparable but not clones, enabling some level of market sway.