Fred Owns a Sporting Goods Company That Has Now Expanded

question 12

Multiple Choice

Fred owns a sporting goods company that has now expanded to 200 stores across the country. His main form of marketing is advertising in different magazines. In the areas of Vermont and New York, he advertises in skiing magazines. In California he advertises in surfing magazines. In Colorado and Utah, Fred advertises in magazines focused on hiking. On the other hand, Fred is also trying to get professional golfing associations to purchase some of his high-end golfing equipment. In this case, rather than advertising Fred meets with representatives from these organizations personally. Fred is most likely selecting promotion mix factors based on

• A) characteristics of the product.
• B) promotional resources, objectives, and policies.
• C) characteristics of the target market.
• D) costs and availability of promotional methods.
• E) push and pull channel policies.

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Definitions:

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the income earned from lending money.

Asset-Backed

A type of investment that is secured by a tangible asset, which can be sold to repay investors if the borrower defaults.

Expectations Theory

A theory suggesting the shapes of yield curves on government securities are determined by investors' expectations about future interest rates.

Term Structure

The relationship between the interest rates or yields of securities and their maturities, often illustrated by a yield curve.