Question 1
A sales manager is currently realigning territories for the upcoming fiscal year. They have identified a specific geographic region that has historically generated high revenue (Cash Cow) but shows very little potential for new business growth due to market saturation. Conversely, a neighboring region has low current revenue but high growth potential (Star). Which resource alignment strategy best optimizes these territories?
Answer and explanation
Correct answer: B
Territory planning requires aligning sales talent with market characteristics. A 'Cash Cow' market needs maintenance and relationship deepening (Farmer), while a high-growth 'Star' market requires aggressive prospecting and new business acquisition (Hunter). Assigning resources this way maximizes efficiency and revenue potential.