Every market activity is an investment in time, energy and money. Few companies would spend a large sum of money on, say, a purchase of capital equipment without a full investigation into why it is needed, the choices available, and the expected return on what has been spent. Yet every year the vast majority of companies invest a large amount of money in marketing actions without knowing what their financial worth to the company or likely return will be. By introducing the disciplines arising from market planning, a company should be able to ensure that the costs of marketing planning show a reasonable return and are calculated in the same way as all other business investments.
Many managers believe that the costs of marketing form an additional expense that has to be accepted in order to sell their goods. Whilst it is true that many companies use certain tools of marketing for this purpose, it is also tru
A. something which increases the cost of goods
B. helpful but not essential to a company’s success
C. less important than investment in production
D. an unnecessary extra business cost
Every market activity is an investment in time, energy and money. Few companies would spend a large sum of money on, say, a purchase of capital equipment without a full investigation into why it is needed, the choices available, and the expected return on what has been spent. Yet every year the vast majority of companies invest a large amount of money in marketing actions without knowing what their financial worth to the company or likely return will be. By introducing the disciplines arising from market planning, a company should be able to ensure that the costs of marketing planning show a reasonable return and are calculated in the same way as all other business investments.
Many managers believe that the costs of marketing form an additional expense that has to be accepted in order to sell their goods. Whilst it is true that many companies use certain tools of marketing for this purpose, it is also tru
A. equals the amount spent on capital equipment
B. does not give a good return on the investment
C. is not based on an assessment of its potential value
D. is viewed by these companies as an important business investment
The housing market has been for two years propping up consumers’ spirits while the rest of the economy lies exhausted on the floor, still trying to struggle to its feet. According to the National Association of Realtors, the national median existing-home price ended the year at $164,000, up 7.1 percent from 2001. That’s the strongest annual increase since 1980.
Although residential real estate activity makes up less than 8% of total U. S. GDP, a housing market like this one can make the difference between positive and negative growth. Most significantly, consumer spending is 66% of GDP, and the purchase of a new home tends to have an "umbrella effect" on the homeowner’s spending as he has to stock it with a washer/ dryer, a new big-screen TV, and maybe a swing set for the yard.
The main factor in housing’s continued strength is a classic economic example of zero-sum boom: the persistent weakness everywhere else. As t
A. Apprehensive
B. Reassured
C. Indignant
D. Annoyed
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