Managers Have Implemented a New Marketing Plan to Increase Sales

question 42

Essay

Managers have implemented a new marketing plan to increase sales at Direc TV,but it does not seem to be working.Explain what the marketing manager and his employees can do to respond effectively,providing specific suggestions.

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Definitions:

Explicit Costs

Costs that involve direct monetary payment by a firm for the resources needed in production, such as wages and materials.

Implicit Costs

The opportunity costs of utilizing resources owned by the company for its operations instead of other purposes.

Accounting Profit

The financial gain calculated by subtracting total explicit costs from total revenues, excluding the consideration of implicit costs or opportunity costs.

Economic Profit

The gap between a company's total earnings and its combined explicit and implicit expenses.