Use This Information for Questions That Refer to the Super

question 239

Multiple Choice

Use this information for questions that refer to the Super Gaming Company and Accessories (SGCA) case. Kayla Jurgenson,marketing manager for Super Gaming Computers and Accessories (SGCA) ,is reviewing her company's plans for the coming year.
SGCA sells its products through retail computer dealers and some specialty gaming stores.Currently,SGCA is carried in 25 percent of all retail computer stores nationwide,but in California it is carried in only 10 percent of stores.Kayla has set an objective of being in 25 percent of all retail computer stores in California within one year.
SGCA plans to introduce a new SuperDuperGamer model with special features that fits its target market of teen and young adult gamers.The SuperDuperGamer uses a new technology and is expected to be a breakthrough product,but it will be important to build awareness for it to succeed.The advertising objective is for 40 percent of SGCA's target market to be aware of the new SuperDuperGamer model within 3 months.SGCA also wants to help its retailers reduce their current stock of SuperGamer computers before the new model comes out in a month.The SuperGamer has been on the market for two years and has been a top seller in the category.SGCA's advertising objective for the SuperGamer computer is to reduce current dealer stock by 80 percent within the next month.
SGCA is also introducing a SuperEnhancer sound card,which is designed to significantly enhance the game-playing experience with older computers.Research with gamers show that it is very well received,so the advertising objective for the SuperEnhancer sound card is to gain 40 percent market share among all gaming-specific sound cards in the next year.To help achieve that objective,Jurgenson is planning to use an ad that shows the sound card and a player being knocked off his chair by the sound.The headline on the ad reads,"9 Out of 10 Gamers Say that the SuperEnhancer Sound Beats All Others!"
If Jurgenson turns to an advertising agency for help,SGCA

• A)will probably be required to sign a long-term contract.
• B)will likely find that most agencies would prefer to work with retailers,rather than producers of consumer products.
• C)can expect the agency to be a specialist in planning and handling mass selling details.
• D)should not expect the agency to do much more than sell media time or space.
• E)should allow the experts at the agency to refine the advertising objectives so that they reflect the creativity of the ads.

---

Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used in manufacturing to allocate overhead costs to products.

Machine-Hours

A metric signifying the amount of time a machine operates, utilized for computing the costs and effectiveness of production.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead cost to products, calculated before the production period begins.

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as utilities, maintenance, and salaries of supervisory personnel.