You Are Leading the Breakout Session on Developing the Marketing

question 28

Multiple Choice

You are leading the breakout session on developing the marketing strategy at your company's strategic planning conference. You have prepared discussion guidelines and rules of engagement to keep all attendees in the session focused on the task at hand.
Your guidelines for developing the company's marketing strategy

• A) suggest that the marketing objectives be written in general terms so that the strategy can be changed along the way if necessary.
• B) suggest that the target market should be identified before the marketing objectives are established.
• C) suggest that the target market should be selected to fit the marketing mix.
• D) suggest that the marketing objectives should be consistent with both the business-unit and the corporate strategies.
• E) suggest that marketing should not worry about the strategy's impact on company profits because the finance department will handle that aspect.

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed to variable costs a company has.

Variable Expenses

Costs that vary directly and proportionately with changes in production volume or business activity.

Fixed

Refers to an interest rate or investment that remains constant and does not fluctuate over a specified period.

Operating Leverage

This is a measure of how revenue growth translates into growth in operating income, showing the proportion of fixed costs in a company's cost structure.