Description
Answer the 4 questions
1. Identify 10 specific marketing activities that incur costs. Five of these marketing activities should be fixed costs, and five should be variable costs. Explain the difference between fixed and variable costs in marketing.
2. When setting a price, which is more important: unit cost or variable cost? Explain.
3. Are marketing costs programmed or committed costs?
4. What is the sunk cost fallacy, and what type of cost does it refer to?
Instructions
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Explanation & Answer
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Running head: MARKETING COSTS
1
Fixed and variable costs in marketing
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MARKETING COSTS
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1. Identify ten specific marketing activities that incur costs. Five of these marketing
activities should be fixed costs, and five should be variable costs. Explain the difference
between fixed and variable costs in marketing.
Marketing activities which are fixed costs
1. Voice and brand messaging- use of blogs and emails to market products.
2. Cold calling- calling customers to offer services.
3. Training employees- involves installing skills and knowledge to marketers.
4. Newsletter and articles- newspapers and articles marketing.
5. Product placement in ...