When Nike Attempts to Get Close to Its Customers at the Local

question 138

Multiple Choice

When Nike attempts to get close to its customers at the local level by sponsoring local school teams and providing shoes, equipment, and clothing to many of them, Nike is using which of the following marketing formats?

• A) differentiated marketing
• B) affiliate marketing
• C) guerrilla marketing
• D) affinity marketing
• E) grassroots marketing

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Definitions:

Profitability

A measure of the efficiency and effectiveness of a company in generating profits from its operations.

Mixed Costs

Expenses that have both fixed and variable components, meaning part of the cost varies with the level of output while part remains constant.

Contribution Margin

The difference between sales revenue and the variable costs associated with the production or sale of products or services. It's used to determine the ability of a business to cover its fixed costs.

Margin of Safety

This financial ratio measures the difference between actual or expected sales and the break-even point, indicating the cushion a company has before it incurs a loss.