Scenario 16

question 116

Multiple Choice

Scenario 16.1 Use the following to answer the questions.
When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends. After a few weeks, then a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas.
Refer to Scenario 16.1. Suppose that Toyota has decided to contract with the producer of the next James Bond 007 movie to use one of its new vehicles in a chase scene. This would best be an example of

• A) sales promotion.
• B) word-of-mouth promotion.
• C) product placement.
• D) viral marketing.
• E) publicity.

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue, indicating the financial health of a company's core activities.

Net Operating Income

The total profit of a company after operating expenses but before deducting interest and taxes.

Residual Income

Income that continues to be generated after the initial effort has been expended, often used in the context of investments or intellectual property.

Minimum Required Rate of Return

The lowest acceptable return on an investment, determined by an investor's risk tolerance and other factors, used as a benchmark for evaluating potential investments.