As Head of Sales and Marketing for Your Company, One $\bullet$

question 4

Multiple Choice

As head of sales and marketing for your company, one of your key responsibilities is to regularly review the company's product mix to determine if any products should be deleted. You are meeting with your marketing team to decide the fate of Product A. The following comments about Product A are made by different members of the team:​
$\bullet$ "There are no strengths left in the product."
$\bullet$ "The losses on the product are huge and they keep growing."
Which of the following actions should you take with Product A?

• A)It should be immediately dropped from the product mix.
• B)It should be phased-out from the product mix.
• C)It should be run-out from the product mix.
• D)Aesthetic modifications to the product should be considered.
• E)Functional modifications to the product should be considered.

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Definitions:

Consumption

The use of goods and services by households. It is the largest component of aggregate demand in an economy.

Underground Economy

Economic activities that occur outside of government regulation and taxation, including both illegal activities and unreported income from legal work.

Intermediate Goods

Products used in the production process to make other goods, not including raw materials.

Final Goods

Products that have completed the manufacturing process and are ready for use by consumers or to be sold as finished goods.