Is there a conflict between profit and volume objectives? Doesn’t one lead to the other? Discuss.
What will be an ideal response?
Volume objectives are usually stated as a percentage of the market share or a percentage increase in sales that firms would like to achieve. Profit may be defined in terms of either net profit percentage desired or target ROI. These two objectives are often in conflict when they are attempted together, because profit entails setting a high enough price to enable the company to earn an adequate margin, while a high market share objective entails setting a price below the competition in order to gain market share. When the two objectives are set in succession, they are not in conflict; successful completion of a high market share objective may enable the pursuit of a higher profit objective in the long run.
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Most merchandisers receive checks and currency from customers in two ways: (1) cash received over the counter from cash sales and (2) cash received in the mail from credit sales
a. True b. False Indicate whether the statement is true or false
Which of the following is a possible reason why security prices were found to respond to changes from pooling to purchase accounting for combinations?
a. A change from pooling to purchase accounting does not affect cash flow. b. Differences between purchase and pooling accounting affect only book income. c. The change could have affected dividend distribution because of debt covenants. d. Income would normally be higher under purchase accounting than pooling.
A salesperson, after addressing all the objections, asks confidently "The next step in the process would be sign the agreement and begin the implementation process. Shall we move forward at this time?" This statement is an example of the ________ close.
A. alternative-choice B. compliment C. Direct D. minor-points E. standing-room-only
ABC Term Life Insurance Company uses an interesting marketing system—it has no agents. Instead, the company markets its coverages through television and radio ads, newspaper inserts, and the Internet
The type of marketing system that ABC Term Life Insurance Company uses is called the A) mass merchandising system. B) mixed marketing system. C) direct response system. D) worksite marketing system.