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Scenario 10-5 In 2007, the Michigan-Based Ford Motor Company Fell from Second

question 99

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Scenario 10-5
In 2007, the Michigan-based Ford Motor Company fell from second to third in the U.S.annual vehicle sales for the first time in 56 years.Facing stiff competition from foreign auto-makers and brand indifference amongst U.S.consumers, Ford appeared to be headed towards turbulent times.However, when marketing and advertising guru Jim Farley joined Ford in November 2007, he brought with him a number of fresh ideas that helped turn the company toward the right direction.Farley quickly found that Americans had become indifferent to the Ford brand, which in his opinion, was worse than disliking the brand.So, Farley, along with the rest of the marketing team at Ford, created a campaign that used catchy songs and cheerful images to accompany its line of automobiles.The marketing team at Ford is now heavily utilizing the Internet to promote the new Ford Fiesta, which is the focus of a campaign that has greatly increased the awareness of the Ford brand.The company has also been stressing the value of buying environment-friendly cars, a move it hopes will improve the brand's image throughout the world.So far, these moves appear to be working-in late 2010, Ford was once again named the second leading automotive company in the United States, as well as the fourth largest in the world.
("Ford Can Fiesta Again." The Economist, October 28, 2010)
-(Scenario 10-5) Ford is using a number of catchy songs in its advertisements.One advantage of using jingles in advertising is:

Grasp the concept of activity cost pools and their significance in activity-based costing.

Analyze the impact of allocating overhead costs on product pricing and profitability.

Differentiate between various overhead allocation methods and their suitability for different types of production processes.

Apply overhead allocation methods to estimate product costs accurately.

Definitions:

FMCG Company

Fast Moving Consumer Goods company; specializes in manufacturing, distribution, and marketing of products that are frequently purchased such as food, beverages, cleaning products, and personal care items.

Retailer

A business or person that sells goods to consumers, typically in small quantities and through a storefront, online platform, or other direct-to-consumer channels.

Provide Follow-up

The act of continuing communication or action with a customer or client after an initial interaction, sale, or service to ensure satisfaction, address concerns, or encourage future business.

Sales Presentations

Structured demonstrations or talks aimed at showcasing a product's features and benefits to persuade potential customers to make a purchase.