Scenario 15.2 Use the following to answer the questions. The manufacturers of Whizz, a new laundry detergent, are developing their promotional plan for the first year. They know they want to use an integrated communications strategy and are considering the use of advertising through TV and magazines, coupons, public relations, sales promotion, and viral marketing. They are not sure when to use each of these methods, however, and have asked for your advice. Refer to Scenario 15.2. The makers of Whizz considered a new promotional method for their product. A small box of Whizz was placed in the mailbox of college students as they came on campus in the fall. Along with the Whizz, the students received a coupon for $1.00 off their next purchase. They could receive another coupon for $3.00 off
if they went online and emailed five friends at another college, telling them about Whizz. The friends could then go to a website and print a coupon for $2.00 off their next purchase. The sample boxes given to the college students are an example of ____, while the emails to the five friends are an example of ____.
A. sales promotion; advertising
B. sales promotion; personal selling
C. publicity; sales promotion
D. viral marketing; sales promotion
E. sales promotion; viral marketing
Answer: E
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The expressive style exhibits nonverbal cues such as enthusiasm and wide inflection in voice.
Answer the following statement true (T) or false (F)
The excess of issue price over par of common stock is termed a(n)
A) discount B) income C) deficit D) premium
When properly performed, bottom-up budgeting has the disadvantage of:
A) A lack of detail needed in project plans. B) A lack of coordination among project managers and functional department heads. C) Being a hindrance to top managers when prioritizing projects that are competing for the same scarce resources. D) A reduction of top management's control of the budget process to one of oversight.
For many years, Oxmoor Corporation has used a straightforward cost-plus pricing system, marking its goods up approximately 20% of total cost. The company has been profitable; however, it has recently lost considerable business to foreign competitors that have become very aggressive in the marketplace. These firms appear to be using target costing.An example of Oxmoor's woes is typified by item no. 710, which has the following unit-cost characteristics: direct materials, $50; direct labor, $90; manufacturing overhead, $40; and selling and administrative expenses, $20. The going market price for an identical product of identical quality is $210, which is below what Oxmoor is charging.Required:A. Contrast cost-plus pricing and target costing.B. What is Oxmoor's current selling price for item
no. 710?C. If Oxmoor used target costing for item no. 710, what must happen to costs if the company desired to meet market prices and maintain its current rate of profit on sales? By how much? What will be an ideal response?