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Scenario 6-3 Keds Has Been Trying to Turn Around a Long-Term Slide

question 55

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Scenario 6-3
Keds has been 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.But over time, 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 several years ago, Keds's advertising agency developed a campaign that focuses on the warm, close relationships between mothers and daughters.According to an issue of Brandweek magazine at the time, "The new ads really go for the heart." Copy on the first ad included the mother saying, "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 6-3) Which of these segmentation techniques would provide the most insight for Keds's advertising agency in the creation of its advertisements?

Definitions:

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, encompassing both fixed and variable costs, giving a comprehensive cost per unit.

Perfectly Competitive

A perfectly competitive market is an economic theory of a market where all participants are price-takers, and goods are completely homogeneous, ensuring no single buyer or seller has market power.

Economic Profits

The financial gains that are realized when total revenues exceed total costs, including both explicit and implicit costs.