Use the Following to Answer the Questions

question 157

Multiple Choice

Use the following to answer the questions.
Jonathan Moore,president of Polar Manufacturing Company,has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve.He specifically feels they could do a better job in managing Polar's product mix.Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures.The group decides that they need to eliminate the complete industrial product line of ice chests,and plan to do so by letting the product decline without any changes in the marketing strategy or product.The group also decides to delete Polar's line of personal thermal underwear,however this product is to be discontinued within the week due to its unprofitability.While discussing these strategies,the group has also uncovered several customer groups for which new products could be developed.The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development.
-Refer to Scenario 11.2.Because some products are not doing well,Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued.He is suggesting a

• A) product-drop decision.
• B) discontinuance procedure.
• C) performance review.
• D) closing system.
• E) systematic review.

Recognize the ethical considerations in advertising.

Appreciate the complexity of introducing products to foreign markets.

Understand how biases in marketing research can influence outcomes.

Understand the components and hierarchical structure of the three-tiered model of thinking.

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Definitions:

Contract Cost

is the total expense that a company recognizes on its books for a specific contract over its duration, encompassing labor, materials, and overhead.

Deductible IRA Contribution

A contribution to an Individual Retirement Account (IRA) for which the taxpayer can claim a tax deduction, subject to certain conditions and limits.

Pension Plan

A retirement plan funded by employers or employees, or both, paying out a fixed sum to retirees, often based on salary and years of service.

AGI

Short for Adjusted Gross Income; it is your gross income after adjustments and deductions, crucial for tax calculations.