Question detail
PeakPods serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?10,455, sales of 930 units, and a 10% change in costs or demand. Which option best applies Explain reasons for promotion, including informing, reminding, increasing sales, changing image and persuading customers?
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 gross profit margin, shareholders 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 shareholders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use PR, promotion to judge gross profit margin, shareholders impact, and the business objective in Promotion.
Explanation
This is the best-supported choice because Use PR, promotion to judge gross profit margin, shareholders impact, and the business objective in Promotion. The case evidence gives ?11,955, 930 units, and 10%, 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 shareholders, or ignore the business objective.
Common mistake
Promotion common mistake 1
Giving a vague answer instead of directly addressing: Explain reasons for promotion, including informing, reminding, increasing sales, changing image and persuading customers..
Answer by clearly explaining how to explain reasons for promotion, including informing, reminding, increasing sales, changing image and persuading customers..
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