Finland-Based Rapala VMC Corp

question 178

Multiple Choice

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.As a global marketer,Rapala uses a one product-one message strategy.What does this mean?

• A) It empowers local managers to change the product in any way necessary.
• B) It sells the same product using the same promotional tools in every country in which it operates.
• C) It gives its local managers promotional and production autonomy.
• D) It has low brand equity.

---

Definitions:

Total Revenue

The total amount of money a company receives from its sales of goods or services, calculated as the quantity sold multiplied by the sale price.

Output

The total amount of goods or services produced by a company or country, usually measured over a specific period of time.

Total Revenue

The full amount of financial receipts a corporation garners from transactions or services provided in a specific time frame.

Marginal Revenue

The additional income that is gained from selling one more unit of a good or service.