A Marketing Manager for a Firm Which Produces Component Parts

question 206

Multiple Choice

A marketing manager for a firm which produces component parts should keep in mind that:

• A) most component buyers prefer to rely on one reliable source of supply.
• B) the after market for component parts generally requires the same marketing mix as the one used to serve the original equipment market.
• C) quality is not as important with components as it is with supplies.
• D) the original equipment market and the after market for component parts should be viewed as separate target markets.
• E) All of the above are true statements.

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Definitions:

Compounded Annually

A method of calculating interest in which the accumulated interest is added to the principal at the end of each year, with future interest then calculated on the new total.

Percentage Increase

A measure of the degree to which a quantity has grown in proportion to its initial value, expressed as a percentage.

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Average Rate Of Return

A financial ratio that estimates the profitability on an investment over a period.