Advanced Bionics Advanced Bionics Is a Global Leader in the Development of Development

question 63

Multiple Choice

Advanced Bionics
Advanced Bionics is a global leader in the development of implantable, high-tech neurostimulation devices used to treat deafness and chronic pain. Just two-and-a- half years after introducing its new stimulators, the firm is doing $200 million in domestic sales. How has Advanced Bionics been so successful? Its success can be attributed to its outstanding products and to three aspects of its sales approach. First, Advanced Bionics hired the right talent for its sales force. Companies tend to use experienced sales reps-often hired away from competing companies-to sell new medical devices. This can be very expensive since experienced reps generally expect as much as $200,000 in annual income. So when Advanced Bionics brought its medical device to market, it hired people with no experience selling medical devices and turned them into sales reps. Hiring inexperienced salespeople created some problems, however, and the company experienced high turnover rates during its first two years in operation. Second, Advanced Bionics provided salespeople with a rigorous training program. Third, Advanced Bionics allowed salespeople to plan their own activities while managers monitored their progress and pushed them to improve. In short, the company has been able to succeed by selecting good people, training them well, and managing them carefully.
-Refer to Advanced Bionics.Advanced Bionics has cutting-edge technology and its customers are very sophisticated.Salespeople need to persuade physicians,neurosurgeons,and orthopedic doctors to use Advanced Bionics' products.Which of the following statements is NOT an advantage that personal selling offers the company?

• A) It can tailor the message to the customer needs.
• B) It is good for explaining the merits of complex products.
• C) It is inexpensive on a per contact basis.
• D) It can be specifically directed to the different types of accounts.
• E) It is effective in convincing a prospective client.

---

Definitions:

Surplus

A situation where the quantity of a product or service supplied exceeds the quantity demanded at the current price.

Maximum Price

A price ceiling set by the government or another regulatory body, beyond which prices cannot legally rise for essential goods or services.

Economic Impact

The effect of an event, policy, or market change on the economy, which can be measured in terms of changes in employment, GDP, or other economic indicators.

Apartments

Living spaces within a building or complex, typically rented, that provide residential accommodation.