Which of the Following Would MOST Weaken the Argument for a Company

question 9

Multiple Choice

Which of the following would MOST weaken the argument for a company continuing with direct mail marketing?

• A) It would have to use highly selective mailing lists to ensure that its messages reach the target audience.
• B) Analysts are predicting a decline in the use of traditional forms of direct mail in coming years.
• C) Competitors are starting to use more intrusive direct marketing techniques.
• D) The effectiveness of direct mail marketing would have to be evaluated and monitored continuously in order to reduce costs.
• E) In terms of per thousand people reached,mass media is much less expensive than direct mail marketing.

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Definitions:

Variable Costs

Costs that vary depending on the level of activity within a business, like those associated with raw materials or the production process.

Net Income

The net income of a business once all deductions, including expenses, taxes, and other costs, are made from its total earnings.

Selling Price

The price at which goods or services are offered to consumers.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.