The Chances of Success for a New Product Are Significantly

question 22

Multiple Choice

The chances of success for a new product are significantly increased if

• A)the company sets goals are set that both flexible and adaptable.
• B)objectives are set for the product itself and target market segments are identified for it.
• C)at least 25% of the initial budget includes advertising and promotional expenditures.
• D)all initial production,distribution,and promotion are done in-house where management can exert the greatest quality control.
• E)the firm outsources those elements of production,distribution,or promotion in which it has the least expertise.

---

Definitions:

Franchisee

An individual or company that is granted the license to do business under the franchisor's trademark, brand, and business model.

Capital Costs

Expenses incurred to create, purchase, or improve fixed assets such as buildings, machinery, and equipment, considered long-term investments.

Return on Marketing Investment

A measure used to evaluate the efficiency and profitability of investment in marketing, calculated by dividing the profit generated from marketing by the cost of the marketing efforts.

Gross Margin

The difference between revenue and cost of goods sold, expressed as a percentage of revenue, indicating the financial health and efficiency of a company's core activities.