What Is A Profit Maximization Strategy
MKT 421 Final Exam Study Guide
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1. Genetech Corp. has invested heavily to develop a patented new product. Genetech wants to achieve a rapid return on its investment. It probably should set a ______________ pricing objective.
Explanation: A profit maximization strategy will seek out the highest level of return on the new product.
2 . When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on the advertiser's ad and links to the advertiser's website, this process is called a(n):
Explanation: Pay-per-click is the backbone of modern web based advertising that is offered by companies like Google and Bing.
3 The advantages of working with an intermediary usually increase when there is:
A greater number of customers.
Explanation: A larger number of customers will require a stronger group of people to reach fully, which can be assisted with the use of intermediaries.
4 When a company provides its advertising agency with a statement about a new product to use in designing an advertising campaign, and this statement includes a description of the target market, the product type, the primary benefits of using the product, and how this product is different from, and better than, competitive products, what type of statement is this?
Explanation: A position statement is designed to identify…