Scenario 1-1 In 1996, a Graduate from the University of Maryland, Kevin

question 52

Multiple Choice

Scenario 1-1
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share. 
-(Scenario 1-1) One of Under Armour's new retail outlets in the U.S.sends a direct mail to 500 households within a one-mile radius of the new store.In the email,the store announces the introduction of its new line of basketball shoes and offers incentives to any customer who walks into the store to purchase a pair of shoes from the new line.This direct mail: 

• A) is paid for, mass mediated, and an attempt to persuade; therefore, it can be considered advertising. 
• B) is paid for and is an attempt to persuade; however, it is only distributed locally and therefore cannot beconsidered advertising. 
• C) is not received by a large enough number of people to be considered advertising. 
• D) is not a part of an advertising campaign, and thus cannot be considered advertising.

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Definitions:

Financial Scandals

Instances of dishonesty or unethical behavior in the financial industry, often involving the theft of funds or manipulation of financial markets.

Corporate Merger

The combining of assets and operations of two companies to form a single entity, often with the aim of increasing market share or reducing costs.

Corporate Mergers

The combination of two or more companies into a single corporate entity, with one of the companies surviving and the others ceasing to exist.

Conglomerate Merger

A business combination of two or more companies operating in entirely different industries.