Use This Information for Questions That Refer to the Super

question 39

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 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!"
-In making her decisions about media, Jurgenson has to:

• A) decide which target market(s) should be reached.
• B) know the costs of alternative media.
• C) decide on promotion objectives.
• D) decide what must be said.
• E) all of the above.

Grasp the principles and applications of incentive pay based on employee performance.

Understand the concept of capital budgeting and its significance in financial decision-making.

Grasp the principles of cash flow estimation and working capital management in capital budgeting projects.

Apply the concept of net present value (NPV) and the use of discount factors in evaluating the viability of projects.

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Definitions:

Subjective Standard

A criterion for judgment based on personal feelings, tastes, or opinions rather than external facts.

Outward Manifestations

Actions or expressions that show an intention to make an agreement or contract, observable to others.

Parties' Intent

The actual aim or purpose that contracting parties had in mind at the time of entering into an agreement.

Invitation To Offer

An indication by a party that they are open to negotiation or receiving offers, but are not making a formal offer themselves.