Ideally, Before a New Product or Service Is Developed, a Firm

question 145

Multiple Choice

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers' needs, wants, and preferences; and (3) what the product or service will be and do to satisfy consumers.

• A)a clear plan for product distribution
• B)an analysis of potential competitors' products
• C)a precise budget of how much can be spent for the marketing program
• D)a well-defined target market
• E)clear financial goals and expectations

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Definitions:

Dividends Paid

Disbursements from a company's earnings given to its shareholders, commonly known as profit sharing.

External Financing

Funds a business obtains from outside sources, such as loans, investments, or grants, to support its operations or growth.

Dividend Payout Ratio

A financial metric that shows the percentage of a company's earnings paid to shareholders as dividends, reflecting the company's dividend policy and financial health.

Maximum Rate of Growth

The highest possible expansion rate that a business can achieve without obtaining additional financing from external sources.