When Developing a Marketing Plan for a New Product That

question 186

Multiple Choice

When developing a marketing plan for a new product that is about to enter the market introduction stage of its product life cycle, a marketing manager should:

• A) plan to change the marketing strategy every six months.
• B) choose the best possible marketing strategy and stay with it throughout its product life cycle.
• C) plan to sell the product until its whole life cycle is over.
• D) plan to change the marketing strategy as the product moves through its life cycle.
• E) change the marketing strategy only when the market environment changes.

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Definitions:

Accounting Profit

Accounting profit is the net income for a company calculated by subtracting total expenses from total revenues, according to generally accepted accounting principles.

Explicit Costs

Payments made directly to individuals or entities for wages, rent, and materials as part of business operations.

Items

Individual objects, products, or units that are part of a list, collection, or inventory available for sale or distribution.

Accounting Cost

The recorded expenses associated with the operation of a business, including both fixed and variable costs.