At the Beginning of 2001, Peach Computers Competed Exclusively in the Computer

question 41

Multiple Choice

At the beginning of 2001, Peach Computers competed exclusively in the computer industry and generated approximately 96% of its revenue from the sales of computers and computer-related software and approximately 4% of its revenues were generated from sales of other peripherals. Further, of these revenues, 60% was from sales in the U.S., 30% was from sales in Europe, 7% was from sales in Asia and 3% was from other areas. In October 2001, Peach entered the personal electronics industry by introducing a new MP3 player known as the PeachPit. In developing and selling the PeachPit, Peach Computers was able to use many of the same R&D facilities, suppliers, production facilities, and distribution and sales outlets as the computers and software Peach Computers traditionally sold. By 2003, the PeachPit MP3 Player, accessories for the unit, and sales of songs on Peach Computers' NectarTunes website accounted for 35% of Peach Computers' revenues.
-If, when Peach Computers introduced its PeachPit in 2001, the company used its profits in the computer industry to subsidize its operations in the electronics industry and used this subsidy to sell the PeachPit for a price that was less than the cost of producing and selling the MP3 players, this would be an example of

• A) mutual forbearance.
• B) escalation of commitment.
• C) predatory pricing.
• D) multipoint competition.

Identify the factors influencing an organization's marketing activities including external forces.

Differentiate between a market and a target market with examples.

Recognize personal experiences and perspectives as valuable in understanding marketing concepts.

Explain the concept of exchange in marketing beyond mere monetary transactions.

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Definitions:

Managerial Knowledge

The understanding and skills necessary for effective management practices, including leadership, decision-making, and resource allocation.

Conceptual Abilities

The capacity to understand complex ideas, identify patterns, and solve problems through abstract thinking.

Management Skills

Abilities required to effectively direct, control, and plan resources and operations within an organization.

Training

The act of teaching or developing in oneself or others, any skills and knowledge that relate to specific useful competencies.