Posted: December 1st, 2016

What supporting points could be made over allocation of indirect marketing costs, by the proponents of each side, in the full-cost versus contribution-margin controversy ?

1. As a sales manager for a baby food concern, you want to evaluate the ability of your representatives to obtain good shelf space in grocery stores. How would you do this? Before implementing this process, you call a meeting of your reps to explain your evaluation process to them. What would you say?

2.“Let’s face it. Our product is no different from that of 20 other competitors. It sells for the same price and for the same terms. We all give the same service. It really doesn’t matter to the buyer which of us gets the order. So the only way we can get an edge is through our aggressive entertainment and gift program. We work hard at making our buyers happy with us. They enjoy doing business with us.” Do you see any ethical problems involved here? What possible consequences are there to the company? What would you do differently, if anything?

3. What supporting points could be made over allocation of indirect marketing costs, by the proponents of each side, in the full-cost versus contribution-margin controversy ? Which of the two concepts do you advocate, and why?

4.If a company made a territorial volume analysis and found some subpar territories, how might these facts affect the following activities relating to salespeople?