Circuses As Recently as 20 Years Ago Circuses Came to Town

question 129

Multiple Choice

Circuses
As recently as 20 years ago circuses came to town with tents,animals,clowns,and other performers.An advance man arrived about two weeks before the circus actually arrived,covered the community with posters,and gave out free tickets to schoolchildren.If the advance man had done a good job,when the circus arrived and opened its tent doors,300 to 600 people would fill its seats.When the largest circus organizations merged,the newly formed Ringling Bros.and Barnum & Bailey's Greatest Show on Earth began performing in 4,000-seat arenas.Attendance,however,has stagnated in recent years.People have stopped going to the circus because they miss the circus tent and the close intimate atmosphere it created.The newest thing in circuses is a return to the tent atmosphere with an emphasis on the types of entertainment that were popular years ago.Antique circus wagons,calliope music,and cotton candy are replacing the exotic animals and the prima donna performers.To satisfy the needs of this new audience,the tent circus now sells lattes and wine.
-Refer to Circuses.To exhibit a societal marketing orientation,circuses could:

• A) rely on publicity and avoid any promotions
• B) empower their employees to satisfy customer wants
• C) donate a percentage of their profits to local educational institutions
• D) use relationship marketing
• E) emphasize customer value

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Definitions:

Profit

The financial gain obtained when the revenue from business activities exceeds the costs and expenses associated with operating the business.

Economic Profit

The total revenue from operations minus both the explicit and implicit costs; it's a measure of profitability factoring opportunity costs.

Accounting Profit

The net income a company reports on its financial statements, calculated as total revenues minus explicit costs of doing business.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.