You Are a Product Manager for a Manufacturer of Detergent

question 158

Multiple Choice

You are a product manager for a manufacturer of detergent.You have determined that detergent is in the mature stage of the product life cycle.To keep your product from entering the decline stage,you should:

• A) use promotion to increase primary demand for detergent
• B) abandon peripheral target markets for detergent
• C) raise the price of the detergent because customers are not price sensitive in this stage
• D) eliminate all unnecessary marketing expense
• E) promote detergent heavily to dealers and customers

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Definitions:

Cash Coverage Ratio

A liquidity metric that measures a company's ability to pay off its debt with its cash flow, demonstrating financial health.

Days' Sales In Inventory

A measure of how efficiently a company manages its inventory, calculated by dividing the inventory by the daily average cost of goods sold.

Inventory Turnover

A metric demonstrating the rate at which a business's inventory is sold and restocked over a designated span.

Cost Of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including materials and labor costs.