Describe the Two Major Components of Marketing Strategy

question 62

Essay

Describe the two major components of marketing strategy. What should marketing managers consider when developing marketing strategy?

Understand the significance of comparing actual to planned results and the utility of budget reports.

Grasp the concept of flexible budgeting and its adaptability to various levels of activity.

Understand the concept and calculation of the fiscal multiplier and the marginal propensity to consume (MPC).

Understand the relationship between federal budget deficits/surpluses and the national debt.

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Definitions:

Passive Loss Rules

Tax regulations that limit the amount of passive activity losses (from investments in which the taxpayer does not materially participate) that can be deducted in a given year.

Materially Participates

In terms of tax law, an individual's active and regular involvement in the operations of a business, affecting eligibility for certain tax deductions.

Passive Activity

Economic activities in which the taxpayer does not materially participate, often producing income subject to special tax rules.

Materially Participate

Involvement in the operations of a business or activity in a regular, continuous, and substantial way, affecting the tax consequences.