A Friend of Yours Is Starting a New Business

question 60

Multiple Choice

A friend of yours is starting a new business. She is confident that her product is superior to her competitors' and doesn't want to budget any money for marketing. You would recommend that she rethink her position on marketing for all of the following reasons except

• A) marketing helps new ventures organize, operate, and assess risk.
• B) marketers help address unmet customer needs, regardless of the size of the firm.
• C) marketing focuses on the product, but only as one element; three other areas are promotion, price, and place.
• D) marketers are skilled at communicating the value of the product to potential customers.
• E) marketing isn't essential now, but it will be in a year or two when the product takes off.

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Definitions:

Government Setting

The environment and conditions created by governmental policies, laws, and regulations.

Price Of Pencils

The amount of money required to purchase a pencil, determined by factors such as production costs, demand, and supply.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from conditions that could make necessary goods unaffordable.

Maximum Price

A ceiling price set by an authority, above which the sale of a good or service is not allowed.