Similar GMAT Doubts

• Email from Marketing Director to Marketing Researcher on October 4, 2011.As... more you know, our revenue growth rate has declined for the past three quarters. To address this, I suggest that we initiate a massive advertising buy. On three separate occasions, in 1978, 1987, and 1993, we have responded to falling revenues by increasing our advertising expenditures by 30%. On all three occasions, within one quarter, our revenues began to increase again. Therefore, if we increase the number of advertisements targeted at our top consumers by 30%, we will once again increase our revenues.Since our top consumers are females aged 15 − 25, compile a list of the top two television programs watched by that group. Also research the prices for a 30-second commercial for each television program.Email from Marketing Researcher to Marketing Director on October 10, 2011.We’ve hit a slight complication in our research. While we’ve had no problem determining the top two programs and advertising prices for each, we’ve realized that there is a fair amount of overlap between the viewers of the two programs. We’ve found that 80% of the audience for Hart Attack also watches Blonde Fury.I’ll send you the chart summarizing the audience size and advertising prices tomorrow.MEMORANDUMTO: Marketing DirectorFROM: Marketing ResearcherDATE:October 11, 2011RE: Market Research ResultsThe attached chart presents the results from our research on the top 2television programs for Females aged 15-25.Q.Consider each of the following statements. Based upon the informationcontained in the two emails and the memoranda, determine whether eachstatement is an assumption made by the Marketing Director.Television advertisements remain as effective at reachinga targeted audience as they were in the past.

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• Email from Marketing Director to Marketing Researcher on October 4, 2011.As... more you know, our revenue growth rate has declined for the past three quarters. To address this, I suggest that we initiate a massive advertising buy. On three separate occasions, in 1978, 1987, and 1993, we have responded to falling revenues by increasing our advertising expenditures by 30%. On all three occasions, within one quarter, our revenues began to increase again. Therefore, if we increase the number of advertisements targeted at our top consumers by 30%, we will once again increase our revenues.Since our top consumers are females aged 15 − 25, compile a list of the top two television programs watched by that group. Also research the prices for a 30-second commercial for each television program.Email from Marketing Researcher to Marketing Director on October 10, 2011.We’ve hit a slight complication in our research. While we’ve had no problem determining the top two programs and advertising prices for each, we’ve realized that there is a fair amount of overlap between the viewers of the two programs. We’ve found that 80% of the audience for Hart Attack also watches Blonde Fury.I’ll send you the chart summarizing the audience size and advertising prices tomorrow.MEMORANDUMTO: Marketing DirectorFROM: Marketing ResearcherDATE:October 11, 2011RE: Market Research ResultsThe attached chart presents the results from our research on the top 2television programs for Females aged 15-25.Q.Consider each of the following statements. Does the information in thememo and the table support the inference as stated?Females aged 15-25 make up the majority of thecompany’s customers.

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• E-mail 1—E-mail from marketing director to research associate Novembe... morer 12, 1:15 p.m.What was our return on investment last year from ads placed in various media? I am developing our marketing budget for next year and would like to determine whether Internet advertising should be continued as extensively as we have in past years. Also, are there data to show how returns from various advertising campaigns differ from quarter to quarter?E-mail 2—E-mail from research associate in response to marketing director’s November 12, 1:15 p.m. message November 12, 1:35 p.m.Attached is a graph that shows the return on investment from last year’s advertising campaigns. Typically we do not repeat campaigns in media that return less than 20 percent in any quarter. The return on investment for Internet ads was strong throughout the year, which supports continuing Internet advertising as we have in the past.Graph 1—Attached to the research associate’s November 12, 1:35 p.m. messageQ.Consider each of the following statements. Does the information in the three sources support the inference as stated?To increase total advertising returns, the company’s Internet campaign might be expanded during 3rd quarter 2011.

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• Email from Marketing Director to Marketing Researcher on October 4, 2011.As... more you know, our revenue growth rate has declined for the past three quarters. To address this, I suggest that we initiate a massive advertising buy. On three separate occasions, in 1978, 1987, and 1993, we have responded to falling revenues by increasing our advertising expenditures by 30%. On all three occasions, within one quarter, our revenues began to increase again. Therefore, if we increase the number of advertisements targeted at our top consumers by 30%, we will once again increase our revenues.Since our top consumers are females aged 15 − 25, compile a list of the top two television programs watched by that group. Also research the prices for a 30-second commercial for each television program.Email from Marketing Researcher to Marketing Director on October 10, 2011.We’ve hit a slight complication in our research. While we’ve had no problem determining the top two programs and advertising prices for each, we’ve realized that there is a fair amount of overlap between the viewers of the two programs. We’ve found that 80% of the audience for Hart Attack also watches Blonde Fury.I’ll send you the chart summarizing the audience size and advertising prices tomorrow.MEMORANDUMTO: Marketing DirectorFROM: Marketing ResearcherDATE:October 11, 2011RE: Market Research ResultsThe attached chart presents the results from our research on the top 2television programs for Females aged 15-25.Q.Consider each of the following statements. Does the information in thememo and the table support the inference as stated?Hart Attack has a higher ratio of viewers per dollar spenton advertising than Blonde Fury.

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• Email from Marketing Director to Marketing Researcher on October 4, 2011.As... more you know, our revenue growth rate has declined for the past three quarters. To address this, I suggest that we initiate a massive advertising buy. On three separate occasions, in 1978, 1987, and 1993, we have responded to falling revenues by increasing our advertising expenditures by 30%. On all three occasions, within one quarter, our revenues began to increase again. Therefore, if we increase the number of advertisements targeted at our top consumers by 30%, we will once again increase our revenues.Since our top consumers are females aged 15 − 25, compile a list of the top two television programs watched by that group. Also research the prices for a 30-second commercial for each television program.Email from Marketing Researcher to Marketing Director on October 10, 2011.We’ve hit a slight complication in our research. While we’ve had no problem determining the top two programs and advertising prices for each, we’ve realized that there is a fair amount of overlap between the viewers of the two programs. We’ve found that 80% of the audience for Hart Attack also watches Blonde Fury.I’ll send you the chart summarizing the audience size and advertising prices tomorrow.MEMORANDUMTO: Marketing DirectorFROM: Marketing ResearcherDATE:October 11, 2011RE: Market Research ResultsThe attached chart presents the results from our research on the top 2television programs for Females aged 15-25.Q.Consider each of the following statements. Based upon the informationcontained in the two emails and the memoranda, determine whether eachstatement is an assumption made by the Marketing Director.The previous increases in revenues were attributable atleast in part to the effect of increased advertising

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