Fans of Cott's Black Cherry Soda Are Able to Explain

question 3

Multiple Choice

Fans of Cott's black cherry soda are able to explain why Cott's is superior to any other type of black cherry soda. Fans are scattered and are extremely brand loyal. The characteristics of this target market indicate that which type of promotional mix should be used?

• A)one with less publicity and sales promotion and more personal selling
• B)one with more advertising and sales promotion and less personal selling
• C)one with less sales promotion and more advertising and personal selling
• D)one with more advertising and less sales promotion and public relations

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Definitions:

Income From Operations

Income From Operations is the profit realized from a business's operational activities, excluding any investment income or taxes.

Contribution Margin Ratio

The contribution margin ratio is a financial metric that shows what percentage of sales revenue is not consumed by variable costs and thus contributes to covering fixed costs.

Fixed Costs

Costs that remain constant regardless of a company's level of activity, including expenses like lease payments, wages, and premiums.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business has "broken even."