What Happens During the Sales Decline Stage

question 70

Multiple Choice

What happens during the sales decline stage?

• A)The total amount spent on promotion usually decreases as firms try to cut costs to remain profitable.
• B)Firms do not need targeted promotion to reach customers.
• C)Personal selling will probably dominate the promotion blends of consumer products firms.
• D)Promotion emphasis shifts from stimulating selective demand to building primary demand.
• E)Sales promotion is primarily targeted at intermediaries to get them interested in selling the product.

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Definitions:

Initial Investment

The initial amount of money spent to purchase an asset, start a project, or launch a business venture, serving as a baseline for measuring future returns.

Annual Cash Inflows

The total amount of money coming into a business from its activities or investments over the course of a year.

Discount Rate

The discount rate applied in the calculation of present value through discounted cash flow analysis to evaluate future cash flows.

Net Present Value

A financial metric that evaluates the profitability of an investment by discounting future cash flows to their present value.