Which of the following statements regarding the use of the portfolio model to allocate selling effort is false?
A) More attractive accounts receive more selling effort.
B) It can be a valuable tool for helping sales managers improve their account effort allocation strategy.
C) All accounts are classified into categories of similar size to determine the level of sales effort needed.
D) Each account served by a firm is considered as part of an overall portfolio of accounts.
E) Each account segment represents a different situation and should receive a different level of selling effort.

Question

Quizplus · Accepted Answer

The statement that all accounts are classified into categories of similar size to determine the level of sales effort needed is false. The portfolio model actually categorizes accounts based on their potential for profitability or growth, not just their size. Other factors such as competitive intensity, buyer behavior and needs, and strategic objectives are also taken into consideration.

Which of the Following Statements Regarding the Use of the Portfolio