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Scenario 4-4 Keds Is Trying to Turn Around a Long-Term Slide in Slide

question 20

Multiple Choice

Scenario 4-4
Keds is trying to turn around a long-term slide in its shoe business. For years, it had depended on its image as the women's no-frills summer shoe to keep sales moving. However, as of late, competition from Sam & Libby and Easy Spirit brands have been nipping at the heels of Keds. As part of its effort to revitalize the brand, Keds' advertising agency has developed a campaign that focuses on the warm, close relationships between mothers and daughters. According to Brandweek magazine, "The new ads really go for the heart." Copy on the first ad includes, "She was my first, I could never tell her how to dress," with the daughter saying, "She made me feel pretty even when I had braces."
-(Scenario 4-4) Which segmentation technique would provide the most insight for Keds's advertising agency in the creation of its advertisements?

Definitions:

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to commit their money.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the company's short-term liquidity and financial health.

Net Present Value (NPV)

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment or project.

Net After-Tax Salvage Value

The estimated value of an asset at the end of its useful life, after subtracting any taxes associated with its disposal.