An Example of a Trap That Marketers Can Set for Themselves

question 90

Multiple Choice

An example of a trap that marketers can set for themselves while targeting a foreign market is to:

• A)overstate the size and short-term attractiveness of individual country markets.
• B)realize that short-term profit and revenue growth objectives may be hard to achieve.
• C)restrain from being persistent to enter a country market.
• D)ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity.
• E)enter a market based on time-consuming rigorous market analysis.

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Definitions:

Sales Mix

The proportion of different products or services that a company sells, representing the combination of sales that impacts overall profitability.

Total Profits

The sum of net income or net earnings of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Contribution Margin Ratio

A financial metric that calculates the proportion of revenue that exceeds total variable costs, thus indicating how much revenue contributes to fixed costs and profits.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.