Question : Which of the following statement is correct?
Statement 1: Promotion of a product is affected by rate of profit, price of competitive product and policy of the government.
Statement 2: Promotion means informing the consumers about the products of the company.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Statement 1 is false and statement 2 is true.
Solution : Pricing of products is the most important function of a marketing manager to fix price of a product. The price of productives affected by its cost rate of profit price of competitive product policy of the government etc. Promotion means informing the consumer about the products of the company and encouraging them to buy these products.
Hence, option D is correct.