16 Jul WHICH OF THE FOLLOWING, IF TRUE, WOULD STRENGTHEN THE ARGUMENT FOR USING TELEVISION AS THE MEDIUM FOR THE NEXT CAMPAIGN?
1.ValueNet Corporation sells electronic learning devices, consumer electronics products, and collectibles directly to American consumers using a team of telemarketers. The aggressive cold calling tactics recently boomeranged when the company became the target of irritated consumers and consumer activist groups who flooded ValueNet’s phone system with return calls and messages. Management is planning to reduce the reliance on outbound calling and use other approaches like direct-response television (infomercials).Which of the following, if true, would strengthen the argument for shifting to direct-response television marketing? Explain your choice. A) Many mainstream companies such as P&G, Dell, Disney, and Bose have begun using infomercials to sell their wares.B) ValueNet could slightly modify its telemarketing techniques and receive a much better customer response.C) TV media production costs are expected to increase substantially as the economy moves toward recovery.D) The majority of Americans have registered their telephone numbers with the National Do Not Call Registry, and the number of registered numbers continues to grow.E) Despite objections and angry responses to cold calls, total sales from telephone marketing have been steady over the years.West Coast Unlimited is a wholesaler that carries close to 20,000 products. The company has almost 3,000 suppliers and sells its products mostly to business and institutional customers. The company markets its products by relying mainly on sales promotion and advertising. Faced with increasing costs, the company is looking at various ways to reduce expenses. West Coast Unlimited’s vice president feels that the company should shift one of its major warehouses to a low-rent, low-tax area.Which of the following, if true, would weaken the vice president’s argument? A) The low-rent, low-tax area is located farther from delivery sites.B) West Coast Unlimited’s competitors often place their warehouses in relatively expensive locations.C) Better use of technology could reduce distribution costs more than a relocation could.D) Final customers are almost always unaware of the location of the wholesaler.E) Delayed shipments from suppliers are already creating problems for West Coast Unlimited’s distribution network.3) A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the BEST criticism of this argument? Explain. A) It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate.B) It fails to demonstrate that traditional retailing businesses are also in jeopardy.C) It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain.D) It does not specify how wholesalers can reduce costs most effectively.E) It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.4) AudiO Corporation is a manufacturer of high-end audio recording devices and car stereo players. Its products are known for excellent craftsmanship and sound quality. The primary target market for the company is executives in the age group of 30 to 40. The company is in the process of reworking its media mix. It had traditionally relied on television to spread its message. However, with the advent of video-on-demand and DVR systems, ad-skipping has become common. Some managers in the decision-making team feel that the bulk of the advertising budget should be allocated to Internet advertising.Which of the following, if true, would strengthen the argument for using television as the medium for the next campaign?A) A study shows that the bulk of television audiences are teenagers and people over 65.B) More than 43 percent of U.S. advertising dollars are spent on national and local television commercials versus 8 percent on Internet advertising.C) The number of video-on-demand viewers is expected to quadruple during the next five years.D) Increasingly, consumers are choosing not to watch ads.E) Effective television ads are still capable of holding the audience’s attention. 1.ValueNet Corporation sells electronic learning devices, consumer electronics products, and collectibles directly to American consumers using a team of telemarketers. The aggressive cold calling tactics recently boomeranged when the company became the target of irritated consumers and consumer activist groups who flooded ValueNet’s phone system with return calls and messages. Management is planning to reduce the reliance on outbound calling and use other approaches like direct-response television (infomercials).Which of the following, if true, would strengthen the argument for shifting to direct-response television marketing? Explain your choice. A) Many mainstream companies such as P&G, Dell, Disney, and Bose have begun using infomercials to sell their wares.B) ValueNet could slightly modify its telemarketing techniques and receive a much better customer response.C) TV media production costs are expected to increase substantially as the economy moves toward recovery.D) The majority of Americans have registered their telephone numbers with the National Do Not Call Registry, and the number of registered numbers continues to grow.E) Despite objections and angry responses to cold calls, total sales from telephone marketing have been steady over the years.Which of the following, if true, would weaken the vice president’s argument? A) The low-rent, low-tax area is located farther from delivery sites.B) West Coast Unlimited’s competitors often place their warehouses in relatively expensive locations.C) Better use of technology could reduce distribution costs more than a relocation could.D) Final customers are almost always unaware of the location of the wholesaler.E) Delayed shipments from suppliers are already creating problems for West Coast Unlimited’s distribution network.3) A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the BEST criticism of this argument? Explain. A) It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate.B) It fails to demonstrate that traditional retailing businesses are also in jeopardy.C) It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain.D) It does not specify how wholesalers can reduce costs most effectively.E) It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.4) AudiO Corporation is a manufacturer of high-end audio recording devices and car stereo players. Its products are known for excellent craftsmanship and sound quality. The primary target market for the company is executives in the age group of 30 to 40. The company is in the process of reworking its media mix. It had traditionally relied on television to spread its message. However, with the advent of video-on-demand and DVR systems, ad-skipping has become common. Some managers in the decision-making team feel that the bulk of the advertising budget should be allocated to Internet advertising.Which of the following, if true, would strengthen the argument for using television as the medium for the next campaign?A) A study shows that the bulk of television audiences are teenagers and people over 65.B) More than 43 percent of U.S. advertising dollars are spent on national and local television commercials versus 8 percent on Internet advertising.C) The number of video-on-demand viewers is expected to quadruple during the next five years.D) Increasingly, consumers are choosing not to watch ads.E) Effective television ads are still capable of holding the audience’s attention.
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