Post new topic Reply to topic  [ 3 posts ] 
Author Message
 Post subject: Official guide 11th edition...diagnostic test...problem 22
PostPosted: Wed May 16, 2012 10:47 am 
Offline

Joined: Sat Feb 25, 2012 9:00 am
Posts: 3
22) following several yearsof declining advertising sales, the Greenville times reorganized its advertising sales force. Before reorganization, the sales for e was organized geographically, with some sales representatives concentrating on city center businesses and others concentrating on different outlying regions. The reorganization attempted to increase the sales representatives's knowledge of client's business by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising increased?
In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, It would be most helpful to find out which of the following?
(A) what proportion of the total revenue of the Greenville Times is generated by advertising sales?
(B) has the circulation of the Greenville times increased substantially in the last 2 years?
(C) among all the types of industry and retailing that use the Greenville times as the advertising vehicle, which type accounts for the largest proportion of the newspaper's advertising sales?
(D) do any clients of the sales representatives of the Greenville times have a standing order with the Times for a fixed amount of advertising per month?
(e) among the advertisers in the greenville times, are the more types of retail business or more types of industrial business?
The answer is B

Here is my question....the sales force got reorganized to understand the client's business more to get more advertisements...if that is the case, how could increase in circulation (the sales force is not targeted to increase the circulation but to increase advertisement sales) be attributed to the success of the sales force reorganization? My take was E. what am I missing? Please let me know


Top
 Profile  
 
 Post subject: Re: Official guide 11th edition...diagnostic test...problem 22
PostPosted: Thu May 17, 2012 6:13 pm 
Offline

Joined: Thu Feb 12, 2009 6:32 pm
Posts: 497
We need to zero in on the cause of the increase ad sales. Higher circulation leads to higher ad rates and, thus, to higher ad sales revenue. If we can rule that out, we can attribute the increase to the reorganization.


Veritas Help


Top
 Profile  
 
 Post subject: Re: Official guide 11th edition...diagnostic test...problem 22
PostPosted: Thu May 17, 2012 6:46 pm 
Offline

Joined: Sat Feb 25, 2012 9:00 am
Posts: 3
Makes sense.thank you


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 3 posts ] 

All times are UTC - 8 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 0 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
cron