Which of the following is true about a marketing cost scope effect?
A)It refers to a reduction in the sales expenditure,to increase profit margins.
B)It refers to production process improvements that are the result of learning.
C)It refers to the use of innovative marketing strategies to increase market share.
D)It refers to cost efficiencies derived from product line extensions.
E)It refers to the cost efficiency achieved by avoiding brand extensions.

Question

Quizplus · Accepted Answer

The marketing cost scope effect refers to cost efficiencies that a company can achieve through extending its product line. This can include savings in marketing and distribution costs due to the shared use of existing channels and brand recognition, rather than the costs associated with launching a completely new brand.

Which of the Following Is True About a Marketing Cost