The Basic Reason for the Existence of the 80-20 Situation

question 42

Multiple Choice

The basic reason for the existence of the 80-20 situation in most marketing programs is:

• A)The inevitable failure of many new products.
• B)The high cost of marketing.
• C)Misdirected marketing effort.
• D)Too many salespeople.
• E)None of these.

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Definitions:

Hourly Wages

The sum of money an employee receives for working one hour.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Hourly Wages

The rate an employee is paid for each hour worked, often regulated by labor laws.

Guaranteed Contracts

Agreements that assure certainbenefits or compensations, often seen in professional sports and executive employment contracts, regardless of performance or circumstances.