Use This Information for Question That Refer to the Yummy

question 65

Multiple Choice

Use this information for question that refer to the Yummy Ice Cream case. Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some of her products and her promotion plans for the coming year.
Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers. This treat uses ice cream produced with environmentally friendly processes that save energy and protect the ozone. Yummy plans to send articles to magazines, local newspapers, and environmental groups that explain the environmentally safer treat. The product also has a unique texture and different flavor.
Stich wants to use counter cards and in-store signs to let people know about Cherry Walrus, the company's new flavor. She is also developing sales training materials that will teach ice cream scoopers in Yummy's ice cream stores to promote the product. Right after Cherry Walrus is introduced each store will also hand out coupons that are good for one day only.
Yummy Mondaes is a product that has been around for 25 years. It is Yummy's take on the classic ice cream sundae, but white-brownie and coffee-flavored crumbles are added to make it extra special. The company sells this product in one and two quart containers through major grocery store chains. It relies on personal selling and price discounts to retailers to move more of the product. The company does very little consumer promotion for this product.
Yummy Fudge on a Stick is a new product of fudge-flavored ice cream on a stick. Yummy plans to sell it through retail grocery stores also and is launching an aggressive advertising program that will use television, radio, newspaper, magazines, and the Internet. Most of its promotion will be directed at consumers.
Two years ago the company introduced Yummy Fruit on a Stick, an all-natural frozen fruit product on a stick. The product category has been popular, continues to grow, and is in the market growth stage of the product life cycle.
Based on where the product category is in the product life cycle, promotion for Yummy Fruit on a Stick should:

• A) emphasize ways that Yummy Fruit on a Stick is best.
• B) be cut back or dropped so that money can be used on products that contribute to customer equity.
• C) use reminder advertising.
• D) build primary demand.

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Definitions:

Common Stock

A type of stock where the stockholders receive dividends only when the board of directors elects to issue dividends.

Dividends Totaling

The sum of dividend payments received by shareholders within a specific period.

Net Proceeds

The total amount of money received from a sale or transaction, after all expenses and costs have been subtracted.

2% Commission

A fee paid to a salesperson, broker, or agent, equivalent to 2% of the sales amount or transaction value.