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School

Murray State University *

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625

Subject

Marketing

Date

Feb 20, 2024

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1

Uploaded by ChiefSpider2992

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Chapter 1 Homework o Submitted 95/100 Total points awarded Help efficient sports utility vehicle. Your support team has prepared the following table, which summarizes the (year-end) profitability, estimated number of vehicles sold, and average estimated selling price for alternative levels of advertising. The accounting department projects that the best alternative use for the funds used in the advertising campaign is an investment returning 9 percent. In light of the staggering cost of advertising (which accounts for the lower projected profits in years 1 and 2 for the high and moderate advertising intensities), the team leader recommends a low advertising intensity in order to maximize the value of the firm. 7 As a marketing manager for one of the world’s largest automakers, you are responsible for the advertising campaign for a new energy- 10/10 points awarded Profits (in millions) Units Sold (in th ds) Selling Price Advertising Intensity Year 1 Year 2 Year 3 | Year 1 Year 2 Year 3 | Year 1 | Year 2 Year 3 High $20 $ 80 $300 10 60 120 [$35,000 | $36,500 | $38,000 Moderate $40 $ 80 $135 5 125 25 $35,800 | $36,100 | $36,300 Low $75 $110 $118 4 6 7.2 $35,900 | $36,250 | $36,000 eBook Which advertising intensity would you suggest? References High advertising intensity. @ Low advertising intensity. All intensity levels are equally good. Moderate advertising intensity. % < Prev 70f10 EHEf Next > Exit
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