Albert Searchware Is a Type of Search Engine Used at Company

question 1

Multiple Choice

Albert Searchware is a type of search engine used at company websites to handle customer questions.The firm is trying to determine what promotional strategy should be employed with its flagship product.It has determined that search engine software is in the growth stage of its product life cycle.Which of the following options should it employ?

• A)Devote 40 percent of the promotional budget to sales promotion that supply the public with demonstration CDs to prove the merits of Albert Searchware.
• B)Spend 30 percent of the budget in the effort to generate publicity for Albert Searchware.
• C)Use the majority of its promotional budget on advertising that focuses on brand differences.
• D)Use a balanced budget and spend equally for each of the four promotional choices in an attempt to even out sales growth.
• E)Encourage its tech support staff to emphasize the superiority of Albert Searchware and its after-sale support.

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Definitions:

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Cumulative Preferred

Cumulative preferred stock is a type of preferred stock that has a provision entitling shareholders to accumulate unpaid dividends to be paid out before any dividends can be issued to other stock classes.

Par Common Stock

The face value of common stock as designated in the company's charter, not necessarily its market value.

Dividends

Dividends are a portion of a company's earnings that are distributed to shareholders as a reward for their investment.