One Advantage of a Market-Product Grid Is That It Can

question 127

Multiple Choice

One advantage of a market-product grid is that it can be used to

• A) make cost-cutting decisions under conditions of uncertainty.
• B) screen many new-product ideas in order to select the one with the best long-run market potential.
• C) determine which target market segments to select and which product groupings to offer.
• D) select representative samples of consumers for marketing research studies.
• E) relate the product life cycle to consumer demand.

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Definitions:

Net Operating Income

The profit generated from normal business operations, excluding expenses from interest and taxes.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Target Profit

The amount of net income a company aims to achieve for a specific period as part of its financial and operational planning.

Monthly

Pertaining to, occurring, or calculated over a month.