Using the PLC Concept to Develop Marketing Strategy Can Be

question 140

True/False

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.

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Definitions:

Selling Price

The amount of money for which something is sold to a buyer, after considering production, marketing, and distribution costs.

Fixed Cost

Fixed costs, including rent, salaries, and insurance, stay the same no matter how much is produced or sold.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, contributing towards covering fixed costs and earning profit.

Break Even Point

The point at which total costs and total revenue are equal, meaning the business is neither making a loss nor a profit.