Albert Searchware Is a Type of Search Engine Used at Company

question 1

Multiple Choice

Albert Searchware is a type of search engine used at company websites to handle customer questions.The firm is trying to determine what promotional strategy should be employed with its flagship product.It has determined that search engine software is in the growth stage of its product life cycle.Which of the following options should it employ?

• A)Devote 40 percent of the promotional budget to sales promotion that supply the public with demonstration CDs to prove the merits of Albert Searchware.
• B)Spend 30 percent of the budget in the effort to generate publicity for Albert Searchware.
• C)Use the majority of its promotional budget on advertising that focuses on brand differences.
• D)Use a balanced budget and spend equally for each of the four promotional choices in an attempt to even out sales growth.
• E)Encourage its tech support staff to emphasize the superiority of Albert Searchware and its after-sale support.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a product that is homogeneous across suppliers, leading to price being determined by supply and demand.

Profit-Maximizing

The process a business undertakes to determine the pricing and output that lead to the greatest returns.

Purely Competitive

A market structure characterized by many sellers offering identical products, leading to a situation where no single seller can influence price.

Output

The amount of product or service produced by a company, industry, or economy within a specific period.