RenoSys Corporation sells a reinforced thermoplastic membrane shell that is used to renovate old swimming pools. RenoSys has organized its sales force around its customers. Even though the college and university market has more potential than the market consisting of individual homeowners, the company provides the same sales support for both. This would be an example of:
A) the iceberg principle.
B) the high cost of marketing.
C) a misdirected marketing effort.
D) a wrongful mission statement.
E) the wheel of selling.

Question

Quizplus · Accepted Answer

RenoSys Corporation's approach of providing the same level of sales support to both the college/university market and the individual homeowners market, despite the former having more potential, is an example of a misdirected marketing effort. This is because the company is not allocating its resources in a way that maximizes the potential return, which could lead to inefficiencies and missed opportunities.

RenoSys Corporation Sells a Reinforced Thermoplastic Membrane Shell That Is