Which of the following statements regarding sales organization effectiveness is true?
A) Most firms conduct annual assessments of cost, profit contribution, net profit, or return on assets.
B) Sales analyses are performed only at the lowest level of the sales organization, typically by territory.
C) The one summary measure of sales organization effectiveness is a productivity analysis.
D) Sales analyses can be conducted in several ways, including by total sales or by sales to specific customers.
E) Most firms employ the same type of sales analysis, an analysis of sales of specific products.

Question

Quizplus · Accepted Answer

Sales analyses can be conducted in several ways, including by total sales or by sales to specific customers. This statement is true as it acknowledges the flexibility in conducting sales analysis, which can be customized according to the firm's needs and goals. Option A is incorrect because while firms may conduct annual assessments, sales organization effectiveness can be evaluated on a more frequent basis. Option B is incorrect as sales analyses can be conducted at different levels of the sales organization, depending on the scope and purpose of the analysis. Option C is incorrect as productivity analysis is one way of measuring sales organization effectiveness, but it is not the only summary measure. Option E is incorrect as firms may employ different types of sales analysis, depending on the factors being evaluated.

Which of the Following Statements Regarding Sales Organization Effectiveness Is