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Senior advertising manager of Barnabys Auctions

Read the scenario below and complete the assignment.

Telegraph Scenario:

The Telegraph (which publishes The Daily Telegraph, The Sunday Telegraph, and the online version of The Telegraph), founded in 1855, is widely viewed as the national “newspaper of record” in England. Due to its many awards and news-breaking journalism, it holds a strong, international reputation as one of the highest-quality newspapers in the world. The newspaper’s circulation is around 500,000, down a great deal from its high of around 1.5 million. You can view more details about the paper at its website: www.telegraph.co.uk/. 

Today you are meeting with Skylyn Richards, senior advertising manager of Barnabys Auctions. You are a salesperson for The Telegraph. Barnabys has opened a series of websites that feature online auctions of art, antiques, and design. You can view more details about Barnebys at its website: www.barnebys.com/. 

You are planning to discuss having Barnebys place ads in both the online and print version of The Telegraph. Skylyn Richards has agreed to meet with you. 

Assignment:

Write a 750 – 1000 word email to your supervisor describing 3 competencies you will demonstrate in the meeting with Skylyn Richards. 

Classify each competency as 1 of the following: business, communications/interpersonal, leadership and management, occupation-specific competencies 

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advertising is determining what and how to reach a particular group or target market

An important part of advertising is determining what and how to reach a particular group or target market. There are numerous ways to do this: demographics, psychographics, behavioral and geographic.

Find an advertisement that seems to be directed toward a specific target market. Describe what you perceive to be the targeted market segment. Find two ads for each of the following segmentation variables:

A. Two demographic ads (an ad that is aimed at a particular age group, sex, income level, etc.)

B. Two geographic ads (aimed at a particular part of the country or climate.)

C.  Two ads that exemplify a behavioral characteristic (usage rate or benefit received.)

D. One psychographic ad (aimed at a lifestyle orientation.)

Explain in detail why each ad falls into the category that you have chosen. Make sure your responses reflect an adequate explanation of the segmentation variable. Two or three paragraphs per ad should be sufficient. Attach a copy of each ad to the assignment. This will ensure that your response is adequately detailed

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Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign.

Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.

Assignment Steps

Complete the following: 

  • Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.
  • Compute the margin of safety ratio for current operations and after Mary’s changes are introduced (Round to nearest full percent).
  • Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes are introduced.

Prepare a maximum 700-word informal memo to management addressing Mary’s suggested changes.