The Basic Goal of Promotion During the Introduction Stage of the Product

question 3

Multiple Choice

The basic goal of promotion during the introduction stage of the product life cycle is:

• A)to limit personal selling at the retail level.​
• B)to target advertising to specific potential buyers.
• C)to reduce the costs incurred in mass advertising.
• D)​to inform the target audience that the product is available.

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Definitions:

Shared Service Units

Organizational entities created within a firm to provide specialized support functions centrally to various business units or departments, enhancing efficiency and reducing costs.

Profit Centres

Divisions or departments within an organization that are responsible for generating their own revenue and managing their own expenses.

Zero Profit

A situation where a company's revenue exactly matches its operational costs, resulting in no net profit or loss.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and contribute to profits.