A Market Orientation Refers to

question 203

Multiple Choice

A market orientation refers to

• A)the orientation of an organization that focuses its efforts on: (1)continuously collecting information about the environment; (2)keeping abreast of the actions of its competitors;and (3)using this information to create customer value.
• B)the orientation of an organization that focuses its efforts on: (1)continuously collecting information about customers' needs; (2)sharing this information across departments;and (3)using it to create customer value.
• C)the belief that the buying environment for any given industry is volatile and therefore all marketing decisions should be short-term and easily adaptable to change.
• D)the belief that the buying environment for any given industry is relatively stable and therefore all marketing decisions should be long-term to prevent loss of focus.
• E)the point of view that holds that there is always someone who needs or can benefit from your product,and if one segment fails,there is an even better one somewhere in the "market."

Comprehend the significance of break-even points in financial analysis.

Acknowledge the risks associated with forecasting in capital budgeting.

Understand the concept and calculation of the Degree of Operating Leverage (DOL).

Analyze the financial implications of changes in cost structures on project valuation.

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Definitions:

NPV Projects

Projects evaluated using Net Present Value, a method to calculate the profitability by comparing the present value of cash inflows with the present value of cash outflows over time.

Low Dividend Payouts

A company strategy of distributing relatively small portions of earnings to shareholders as dividends.

NPV Projects

Projects evaluated based on the Net Present Value method, which calculates the difference between the present value of cash inflows and outflows to determine profitability.

Flotation Costs

The total costs incurred by a company in issuing new securities, including underwriting, legal, and registration fees.