Determine the minimum value spend in promotion

Assignment Help Finance Basics

Reference no: EM1357019

Chester's Elite product Cell has an awareness of 72%. Chester's Cell product manager for the Elite segment is determined to have more awareness for Cell than Andrews' Elite product Axe. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Cell's existing awareness is lost every year. Assuming that Axe's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Chester's Elite product manager should spend in promotion to earn more awareness than Andrews' Axe product?

A. Nothing
B. 1 Million
C. 2 Million
D. 3 Million

Reference no: EM1357019

Questions Cloud

Illustrate what is each firm equilibrium output : Illustrate what is each firm's equilibrium output and profit if they behave noncooperatively. Use the Cournot model. Draw the firms' reaction curves and show the equilibrium.

Notes payable and accured interest : Mikor has an account payable of 7,700$ due to Smiley Inc. one of its suppliers. The amount was due to be paid on October 15, 2007. Use the horizontal model, or write the journal entry to show the effect of :

Structure and importance of a project phase review meeting : Explain the structure and importance of a project phase review meeting. Select three areas that need to be reviewed by the project manager and explain why.

How many km of forest remained after the fires : A map of a burned area obtained from remote sensing contains 120 pixels. The remote sensing image shows that the fire is isolated to 73 of the 120 pixels.

Determine the minimum value spend in promotion : Chester's Elite product Cell has an awareness of 72 percent. Chester's Cell product manager for the Elite segment is estimated to have more awareness for Cell than Andrews' Elite product Axe.

Explain what is constitutes indecency : Indecent Behavior - Explain what is constitutes indecency and examine the appeal or attraction of indecency in media and the role society plays in defining or policing indecency

Illustrate at what level of l do diminishing marginal return : Consider the following short-run production function: q = 5L2 - 1/3L3. Illustrate at what level of L do diminishing marginal returns begin. At what level of L do diminishing returns begin.

Bond issuance journal entry : On January 1, 2010, Kentwood Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1 and July 1. Prepare the journal entry for the issuance assuming the bonds are issued at 97.

Sexual abuse and assault victims : Sexual abuse and assault victims are considered by some to be the single largest group of sufferers.

User Account

All Pages