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Problem 5 - Entrance Test

A company is considering two different marketing strategies. Strategy A focuses on targeted online advertising, while Strategy B emphasizes traditional print and television advertising. Strategy A is less expensive per customer reached, but Strategy B has a higher brand recall rate. The company has a limited budget and needs to maximize its return on investment. Which of the following additional pieces of information would be most helpful in determining which marketing strategy to pursue?

Correct: A

Option A, the demographics of the company's target market, is the most helpful. Knowing the demographics will allow the company to determine which strategy reaches the target market most effectively and efficiently. For example, if the target market is primarily young adults who spend a lot of time online, Strategy A would likely be more effective. If the target market is older adults who primarily consume traditional media, Strategy B might be more effective. The other options are less directly relevant to comparing the effectiveness of the two strategies for the specific target market.