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A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:
Correct Answer: A
* Context: A global product is no longer appearing profitable, requiring senior management to take action. * Options Breakdown: * A. Analyze product profitability by market segment: This involves examining which segments of the market are contributing to profitability and which are not, providing insight into targeted strategies to improve or discontinue specific segments. * B. Discontinue the product based on eroding profitability: This is a drastic measure that may overlook profitable segments. * C. Provide additional incentives to the sales force: This may not address the underlying profitability issues and could increase costs. * D. Increase promotional activity across all markets: This could be costly and ineffective if the product is fundamentally unprofitable in certain segments. * Correct Answer Justification: By analyzing product profitability by market segment, senior management can make informed decisions on whether to focus efforts on more profitable segments, adjust strategies, or discontinue specific segments. References: * Marketing and profitability analysis literature * Case studies on strategic decision-making for product lines