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# Following several years of declining advertising sales

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20 Aug 2008, 19:44
CAn we get the OA/OE ?
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20 Aug 2008, 21:35
This is quite confused since there is no perfect choice. But my stand is with B.
If the circulation improves, that means the magazine could improve its advertising sales (charge higher for each ads).
This could disprove the claim that the re-org has helped the magazine to improve its total ad sales.
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29 Aug 2008, 09:23
OA - B. SOrry for not posting the OA on time. Thanks!
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Re: GMAT PREP CR: Sales [#permalink]

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02 Dec 2008, 10:57
Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force. Before reorganization, the sales force 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' knowledge of clients' businesses by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales 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 EXCEPT?

1) Two years ago, what proportion of the Greenville Time's total revenue was generated by advertising sales
total revenue is irrelevant

2) Has the circulation of the Greenville Times increased substantially in the last two years
weakens if yes

3) Has there been a substantial turnover in personnel in the advertising sales force over the last 2 years
weakens if yes

4) Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all types of businesses to which they are assigned?
strengthens if yes

5) Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?
weakens if yes

A
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Re: GMAT PREP CR: Sales [#permalink]

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02 Dec 2008, 11:43
5 ... if the economy is growing, reorganization has nothing to do with growth.
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Re: GMAT PREP CR: Sales [#permalink]

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02 Dec 2008, 12:13
Agree with A as the answer.
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Re: GMAT PREP CR: Sales [#permalink]

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02 Dec 2008, 18:47
IMO E....Greenville economy is nothing to do with reorganization of the company
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Re: GMAT PREP CR: Sales [#permalink]

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03 Dec 2008, 05:35
OA is A.
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Re: GMAT PREP CR: Sales [#permalink]

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04 Jun 2011, 09:59
A - total revenue proportion does not tell anything about - advertising sales increase/decrease
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04 Apr 2014, 10:32
This question is poor quality. GMAT is forcing us to know that increased circulation can affect advertising sales... but premises are not presenting any such relationship. Cant expect such question.
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23 Jun 2014, 22:59
Conclusion:

Re-organization caused increased revenue.

It would be worth to find out whether something else can be attribute to the increase sales.

Ans B mentions , whether subscription of the magazine has been increased. If yes, then conclusion would be weak because increased subscription can be attribute ton increase revenue.
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06 Jul 2015, 21:51
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07 Jul 2016, 22:40
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08 Jul 2016, 06:18
ceointhemaking wrote:
Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force. Before reorganization, the sales force 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' knowledge of clients' businesses by having each sales representative deal with only one type of industry or of retailing. After the reorganization, revenue from advertising sales 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 two years?
(C) Among all the types of industry and retailing that use the Greenville Times as an 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 there more types of retail business or more types of industrial business?

Official Guide 12 Question

 Question: 22 Page: 34 Difficulty: 600

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Video Explanations:

Conclusion : Revenue increased due to reorganization

A) We are not worried about the proportion. We want the reason why revenue from sales increased. Even if it's 1% or 10%, throughout the question we are talking about increase in revenue from sales and not revenue of the newspaper. Irrelevant
B) This provides alternate explanation. Hold on. If more papers were sold, there will be more interest in advertising in the paper causing the  to go up.
C) Doesn't matter from where the revenue is coming.
D) This again is irrelevant. If there was standing orders, then sales would be constant. We already know that sales are up
E) Again, the source of revenue is irrelevant

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24 Oct 2016, 07:23
Can anyone help me out to understand the answer choice B?

Option B says - knowing whether circulation increased or not will help to evaluate the conclusion.
Official guide says, increase in circulation is an alternative reason for increase in the revenue. This is debatable..
My concern is circulation could have increased because of reorganization. Alternatively, it could have increased because of other reasons also. We dont know.

The argument doesn't provide any information linking circulation of the GreenVille Times to reorganization. To arrive at the answer choice B, we will have to assume that the circulation is not linked to re-organization. This is strange.. Why are we assuming this?
I really cant understand.. If increase in circulation is directly the impact of the reorganization, then what?

Can anyone help please? What am I missing here?
Re: Following several years of declining advertising sales   [#permalink] 24 Oct 2016, 07:23

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