Final answer:
The three basic salesforce organizational structures a company can choose are geography, customer, and product. These structures align the salesforce with the company's operational goals and market strategies, including understanding cost structures and market competition for profit maximization. The correct answer to the student's question is D. geography, customer, and product.
Step-by-step explanation:
When a company decides to employ its own salesforce, it must consider the best organizational structure to align with its business goals and market conditions. The correct answer to the student's question is D. geography, customer, and product.
These three basic structures represent different ways to organize the salesforce in relation to a company's operations. Organizing by geography means dividing the salesforce based on different regions or territories.
A customer-centric structure focuses on different customer types or industries, offering specialized attention. Lastly, a product-based structure is where the salesforce is divided according to the company's product lines, which requires deep knowledge of each product.
In the context of market structure, companies must analyze their cost structure, which includes fixed and variable costs, to understand their average total cost, average variable cost, and marginal cost.
Combining cost structure with market structure analysis is vital for determining the most profitable production quantities and pricing strategies. Understanding market structure, which considers factors like competitiveness and market power, is essential for an efficient salesforce structure. The correct answer to the student's question is D. geography, customer, and product.