Define line stretching and describe three types of line stretching
What will be an ideal response?
Line stretching occurs when a company lengthens its product line beyond its current range. In a down-market stretch, the marketer introduces a lower-priced line to attract shoppers who want value-priced goods, battle low-end competitors, or avoid a stagnating middle market. In an up-market stretch, the marketer introduces an upscale line to achieve more growth, realize higher margins, or position itself as a full-line manufacturer. Companies serving the middle market might stretch their line in both directions.
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Companies that are centralized typically allow managers at the local subsidiary to make ad agency selection decisions
Indicate whether the statement is true or false
In the brand resonance model of brand equity, the creation of significant brand equity involves reaching the top or pinnacle of the brand pyramid. What are the six components of this pyramid?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. The traditional income statement format is prepared under absorption costing. 2. Under absorption costing, all product costs are first recorded as assets in inventory accounts, and later transferred to the Cost of Goods Sold account when sold. 3. Variable costing is used for external reporting purposes, and absorption costing is used for internal decision-making purposes. 4. Contribution margin is calculated by deducting the total cost of goods sold from sales revenue. 5. The traditional income statement format calculates operating income as gross profit minus selling and administrative expenses.
In publicity, the media are not paid for the time or space utilized
Indicate whether the statement is true or false