When a Company Specializes Its Sales Force by Type of Customer

question 42

Multiple Choice

When a company specializes its sales force by type of customer:

• A)There is no opportunity for geographical specialization.
• B)This is likely to increase the friction between channels of distribution used by a firm.
• C)Technical staff specialists cannot be used.
• D)This is compatible with the customer-orientation philosophy underlying the marketing concept.
• E)Overlapping territories usually are eliminated.

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Definitions:

Substitute Good

A product or service that a consumer can use in place of another to satisfy the same need or desire.

LRMC

Long-Run Marginal Cost, which refers to the change in total production costs that comes from producing one additional unit of a good or service when all inputs are variable.

SRMC

Short-Run Marginal Cost (SRMC) is the cost to produce one additional unit of output when some inputs are fixed.

Grocery Store

A retail establishment that sells food and other household items.