The Disadvantage of Product Sales Organization Is

question 131

Multiple Choice

The disadvantage of product sales organization is

• A)it increases the number of salespersons in the salesforce since most product sales organizations are based around standard rebuys.
• B)there is a larger cost for sales since this method is chosen for products that inherently have little or no product variation.
• C)produces high administration costs and duplication of selling effort because two company salespeople may call on the same customer.
• D)significantly maximizes travel time, expenses, and duplication of selling effort from one territory to another.
• E)increases the requirement for more sales managers since the salesforce is paid strictly on commission which acts as a significant self-motivator.

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Definitions:

Grouping of Individuals

The organization or classification of people into groups based on shared characteristics, objectives, or interests.

Formalization

The extent to which an organization's procedures, policies, and rules are written and strictly followed.

Allowable Actions

Those actions or behaviors that are permitted within a given set of rules, regulations, or contexts.

Total Quality Management

An organizational approach focused on continuous improvement in all aspects of work, from decision-making to customer service, by involving every employee.