Scenario 15.2 Use the Following to Answer the Questions

question 69

Multiple Choice

Scenario 15.2
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 15.2. If the manufacturers of Whizz were to partner with Whirlpool to place a bottle of Whizz in each new washer that is purchased during the first year, this would be an example of

• A)advertising.
• B)sales promotion.
• C)viral marketing.
• D)packaging.
• E)publicity-based public relations.

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Definitions:

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a company’s common stock.

Diluted EPS

Earnings per share calculated by including all convertible securities, warrants, options, and other financial instruments that could potentially dilute the earnings per share if exercised.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a specified number of common shares, usually after a predetermined date.

Treasury Stock

Shares that were once part of the outstanding shares and have been bought back by the company. These shares do not earn dividends and have no voting rights.