When General Motors Provides Payments or Price Reductions to Its

question 12

Short Answer

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________.
trade discount
functional discount
allowance
promotional allowance
trade credit

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Definitions:

R&D

Research and Development, which involves investigative activities that a business chooses to conduct with the intention of making a discovery that can lead to the development of new products or procedures.

Product Mix

The complete range of products that a company offers for sale, including variations in product lines, sizes, flavors, and other characteristics.

Product Lines

A group of related products offered by a single company that serve a similar customer segment or have been developed from the same technology.

Marketing Mix

A set of controllable marketing tools—Product, Price, Place, Promotion—that a company uses to pursue its marketing objectives in the target market.