CLEP Marketing

Category - Product Management

Companies standardize components in product lines to
  1. Reduce inventory and manufacturing costs
  2. Reduce marketing costs
  3. Increase brand equity
  4. Penetrate new markets
  5. Improve product market presence
Explanation
Answer: A - Companies standardize components in product lines to reduce inventory and manufacturing costs. Car companies, for example, use many of the same parts in a number of product lines. Similarly, food companies will use many of the same stabilizing, flavoring, and color components in their product lines. This method reduces manufacturing costs as well as inventory costs and is a clear benefit when introducing and maintaining product lines.
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