Reference no: EM132239675
1. Marketers with successful brands sometimes hesitate to expand the use of their brands because:
Federal Trade Commission regulations limit the number of individual products that can be marketed under an individual brand name.
it is costly to maintain many brands and might weaken the firm’s brand reputation.
it is often difficult to get additional marketing communications coverage for brand extensions.
manufacturing divisions usually control brand expansion and often conflict with the marketing division.
2. Regarding new product idea generation:
from a marketing perspective, scientists and researchers are the ideal sources of ideas.
most idea generation techniques are unstructured and supposedly free-flowing.
the brainstorming approach involves instant feedback and evaluation of ideas.
the number of new product ideas generated should be very small to maintain quality.
3. Calculate the break-even point for a new line of shirts. Selling price will be $48 per shirt. Labor costs will be $12 per shirt. Administrative costs allocated to the shirt line are estimated to be $80,000 annually and the sales and marketing expenses are $40,000 a year for the shirt line. Cost of materials will be $20 per shirt. What is the break-even quantity? The break-even quantity lies in the range:
more than 8,000 shirts.
6,001 to 8,000 shirts.
3,500 to 6,000 shirts.
fewer than 3,500 shirts.
4. In comparing penetration and skimming price policies:
the former is useful when the firm has excess production capacity.
the former sets a price without considering competition.
the latter discourages the entrance of competitors.
the latter is appropriate when demand is price elastic.