Question

the first step in new product planning is to develop a full marketing strategy. * 3 points
true
false

highly complex and technical products have higher prices than simple products. * 3 points
true
false

a markup should be thought of as a pricing mistake because it reduces the amount of money the business has to cover operating expenses and profits. * 3 points
true
false

a farmer selling tomatoes she grew in her own garden at a roadside stand is an example of a direct channel of distribution. * 3 points
true
false

advertising is any form of communication used to inform, persuade, or remind. * 3 points
true
false

Explanation:

• First question: The first step in new product planning is idea generation, not developing a full marketing strategy.
• Second question: Highly complex and technical products often have higher costs (R&D, production etc.) which can lead to higher prices compared to simple products.
• Third question: Markup is added to cost to cover operating expenses and make profits, so it's not a pricing mistake.
• Fourth question: A direct channel of distribution means no intermediaries. The farmer selling directly is a direct channel.
• Fifth question: Advertising is indeed a form of communication for informing, persuading or reminding.

Answer:

1. B. False
2. A. True
3. B. False
4. A. True
5. A. True