Scenario 16

question 137

Multiple Choice

Scenario 16.2 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 16.2. Since Whizz is a new product, which of the following promotional methods would you least recommend?

• A)magazine ads.
• B)viral marketing.
• C)television commercials.
• D)a price-reduction sales promotion.
• E)public relations.

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Definitions:

Competitive Price-Taker

A business that has no control over the market price and must accept the prevailing market price set by supply and demand forces.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in quantity sold.

Market Price

The present cost at which a good or service may be purchased or sold on the market.

Marginal Cost

The expense involved in manufacturing an extra unit of a good or service.