Bonnie Faces the Challenge of Developing the Promotion Mix for a New

question 267

Multiple Choice

Bonnie faces the challenge of developing the promotion mix for a new business. Given the uniqueness of the new products and a very limited budget, Bonnie confronts a creditability problem. She realizes that the promotional messages of an unknown firm may be met with skepticism. Bonnie should consider:

• A) publicity to help create a positive image for her firm and its products.
• B) the extensive use of persuasive advertising.
• C) emphasizing personal selling rather than public relations.
• D) changing jobs because this situation is hopeless.

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Definitions:

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing of a product and are easily traceable to the product being manufactured.

Work In Process Inventory

The cost of unfinished goods in the production process, including labor, raw materials, and overhead.

Conversion Costs

The combined costs of direct labor and factory overhead incurred to convert raw materials into finished goods.

Factory Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as maintenance, utilities, and salaries of supervisory personnel.