Automatic Data Processing (ADP) Was Born Through an Innovation That

question 33

Essay

Automatic Data Processing (ADP) was born through an innovation that created a new business niche-a foolproof outside service to help small businesses meet their weekly payrolls. First, position this service on a product-service continuum for which the basic underlying variable is tangibility. Second, describe how ADP's marketing strategy would be different from an office equipment manufacturer that called on the same small businesses.

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Definitions:

Profit-Maximizing

Achieving the highest possible profit through the management of resources, production outputs, and pricing strategies, within the constraints of market conditions.

Output

The total amount of goods or services produced by a business, industry, or economy.

Marginal Revenue

Additional earnings received from the sale of one more unit of a product or service.

Marginal Cost

The financial commitment for manufacturing an additional unit of a product or service.