Scenario 17.2 Use the Following to Answer the Questions

question 84

Multiple Choice

Scenario 17.2
Use the following to answer the questions.
The manufacturers of Whizz,a new laundry detergent,are developing their promotional plan for the first year.They know they want to use an integrated communications strategy and are considering the use of advertising through TV and magazines,coupons,public relations,sales promotion,and viral marketing.They are not sure when to use each of these methods however,and have asked for your advice.
-Refer to Scenario 17.2.The makers of Whizz considered a new promotional method for their product.A small box of Whizz was placed in the mailbox of college students as they came on campus in the fall.Along with the Whizz,the students received a coupon for $1.00 off their next purchase.They could receive another coupon for $3.00 off if they went online and emailed five friends at another college,telling them about Whizz.The friends could then go to a website and print a coupon for $2.00 off their next purchase.The sample boxes given to the college students are an example of ____,while the emails to the five friends are an example of ____.

• A)sales promotion;advertising
• B)sales promotion;personal selling
• C)publicity;sales promotion
• D)viral marketing;sales promotion
• E)sales promotion;viral marketing

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Definitions:

Conversion Costs

Conversion costs are expenses incurred when manufacturing a product or providing a service, specifically including both direct labor costs and manufacturing overhead costs.

Baker's Wages

The compensation paid to individuals who are employed to bake goods, usually considered a variable cost in the production process.

Direct Labor

The workforce directly involved in manufacturing goods or providing services, whose wages are considered part of the cost of goods sold or cost of services.

Factory Overhead

The total indirect costs associated with manufacturing, excluding direct labor and direct materials.