A company's compensation plan should reflect its overall marketing strategy For example if the overall strategy is to grow rapidly and gain market share the compensation plan should reward ?
Correct answer: C. high sales performance and encourage capturing new accounts
- A. loyalty and perseverance
- B. spot selling and old product rejuvenation
- C. high sales performance and encourage capturing new accounts
- D. high pressure situations and competitive reaction
Explanation
A rapid-growth strategy requires salespeople to increase current sales while opening new accounts and expanding market share. Therefore, compensation should reward strong sales performance and customer acquisition.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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