Question detail
Northline Gym serves commuters while opening a second outlet; the case evidence includes net profit margin of ?4,426, sales of 856 units, and a 19% change in costs or demand. Which option best applies Explain benefits and drawbacks of promotional methods?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The elements of the marketing mix: price, product, promotion and place
Question
- A. Use PR, promotion to judge net profit margin, owners impact, and the business objective in Promotion.
- B. Give only a definition of The elements of the marketing mix: price, product, promotion and place without using the case evidence.
- C. Treat gross and net profit as identical and ignore the effect on owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use PR, promotion to judge net profit margin, owners impact, and the business objective in Promotion.
Explanation
This option works because Use PR, promotion to judge net profit margin, owners impact, and the business objective in Promotion. The case evidence gives ?5,926, 856 units, and 19%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, miss the owners, or ignore the business objective.
Common mistake
Promotion common mistake 1
Giving a vague answer instead of directly addressing: Explain benefits and drawbacks of promotional methods..
Answer by clearly explaining how to explain benefits and drawbacks of promotional methods..
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