As It Pertains to the Marketing Plan, Understanding the Causes

question 20

Multiple Choice

As it pertains to the marketing plan, understanding the causes of performance, regardless of whether that performance exceeded, met, or fell below the firm's goals is important because it

• A)enables firms to make appropriate adjustments.
• B)allows managers to demonstrate their effectiveness.
• C)offers insights into crafting an appropriate mission statement.
• D)should always be followed by eliminating underperforming SBUs.
• E)allows firms to better assess customer loyalty.

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Definitions:

Normal Rate

Often refers to a benchmark interest rate considered typical or average within an economic environment or financial product.

Economic Profit

The difference between total revenues and total economic costs (including both explicit and implicit costs), reflecting the additional income generated over and above the opportunity costs.

Normal Rate

A standard or typical rate used as a benchmark or point of reference, often in contexts like interest rates or economic growth rates.

Short Run

A period in which at least one input (such as plant size, machinery) is fixed and cannot be changed by the firm.