You Are the Brand Manager for a New Line of Allergy

question 110

Multiple Choice

You are the brand manager for a new line of allergy relief drugs.Which of the following methods might you employ to influence opinion leadership/reference groups to help stimulate demand for your products?

• A) Create ads that show the typical consumer performing a healthy lifestyle activity.
• B) Develop a promotional campaign that tells customers they "deserve to use" these products.
• C) Drop the price of your new products to the point where customers will note they are getting a bargain.
• D) Develop a promotional campaign that emphasizes safety and security needs being fulfilled by these health-care products.
• E) Use a series of ads showing different health-care associations and societies endorsing the use of these health-care products.

---

Definitions:

Plantwide Predetermined Rate

A single overhead absorption rate calculated for an entire manufacturing facility to allocate overhead costs to products.

Markup

refers to the amount added to the cost price of goods to cover overhead and profit.

Machine-Hours

A measure of production volume based on the total hours machines are run in the manufacturing process, often used to allocate overhead costs.

Departmental Predetermined Rates

The estimated overhead rates calculated for specific departments within a company to allocate costs appropriately.