Use This Information for Question That Refer to the Super

question 62

Multiple Choice

Use this information for question 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 is carried in only 10 percent of stores. So, Kayla has set an objective of being in 25% 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. So, the advertising objective is for 40% 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% 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% 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 game 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!"
Given the advertising objective for the old SuperGamer model, which of the following types of advertising would be most appropriate?

• A) ads with price deal offers
• B) a teaser campaign
• C) informative descriptive ads
• D) pioneering ads
• E) institutional ads

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Definitions:

Operating Expenses

Expenses incurred in the normal course of business operations, excluding costs of goods sold and depreciation.

Prepaid Expenses

Costs paid for in advance for goods or services to be received or used in the future, recorded as assets and subsequently expensed over the applicable period.

Indirect Method

A method used in cash flow statements to calculate net cash flow from operating activities by adjusting net income for non-cash transactions.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at different points in time, side-by-side, to enable comparison.