Scenario 1-1 In 1996, a Graduate from the University of Maryland, Kevin

question 115

Multiple Choice

Scenario 1-1
In 1996, a graduate from the University of Maryland, Kevin Plank founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry.During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line.In late 2010, however, Under Armour released its first line of basketball shoes since the company's inception."Along with the new product line, the company must have a new brand image," said Plank."I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company has also removed all advertisements carrying the word "apparel," and will begin exploring new ways to promote the brand.The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear from powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
-(Scenario 1­1) One of Under Armour's new retail outlets in the U.S.sends a direct mail to 500 households within a one mile radius of the new store.In the email, the store announces the introduction of its new line of basketball shoes and offers incentives to any customer that walks into the store to purchase a pair of shoes from the new line.This direct mail:

• A)is paid for, mass mediated, and an attempt to persuade; therefore, it can be considered as advertising.
• B)is paid for and is an attempt to persuade; however, it is only distributed locally and therefore, cannot be ^{considered as advertising.}
• C)is not received by a large enough number of people to be considered as advertising.
• D)is not a part of an advertising campaign and thus, cannot be considered as advertising.

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Definitions:

Bond Investment Transactions

A financial activity involving the buying or selling of bonds, which are debt securities issued by entities to raise funds.

Accrued Interest

The interest that has been incurred but not yet paid at the end of a period on loans or bonds.

Semiannual Interest

Interest that is computed and disbursed semi-annually.

Long-term Investment

Assets intended to be held for more than one year for capital growth, income generation, or other strategic purposes.