Pick ONE of the following options: Develop an ad campaign for a company/product/service related to your employment (note that if your employment is B2B in nature, most B2B doesn’t involve much advertising. They tend to use other promotional elements. So keep that in mind), OR Develop an ad campaign for your very own local tanning salon OR sporting goods store that’s been in business for just over one year To try to develop demand for your company/product/service -- OR to resuscitate your ailing store -- you've decided to conduct an ad campaign. Following the steps outlined in the Lecture from Chapter 18, provide a detailed description of your campaign. Be sure to mention each of the areas listed below. Also be sure that you are focusing on strategies for this specific ad campaign -- not simply your advertising or marketing in general. Do not use any current advertising campaign! NOTE: If you select your current employer who uses a differentiated strategy, select only one specific target market for this campaign. Introduction Please start by giving a brief explanation of the product/service/store you are advertising. Step 1 -- target market of this specific ad campaign Provide a geographic, demographic, and psychographic description of your target. I am looking for an insightful description of your target. Step 2a -- objective of this specific ad campaign Be sure you identify what you want this ad campaign to accomplish. Which of the types of advertising (informative, persuasive or reminder) will you be using and why? Step 2b -- focus of campaign What will be the focus of your ads – product-focused or institutional? Why? (NOTE: In addition to your text, see the lecture for clarification of these terms). Step 3 –- determine your budget Think about the size of your business, overall sales and success. You don’t need a specific budget number but discuss how these areas will affect how much you are able to spend and whether that potentially eliminates some types of media. Step 4a –- convey the message (Be creative!) Develop a unique selling proposition (USP) for the campaign. Make sure to provide an explanation of your rationale for the USP. Step 4b -- appeal Will you use an informational or emotional appeal? Why? Step 5a & b -– media types and vehicles. Describe which media types you will use and why. List the specific media vehicles for each type. A media vehicle is the specific communication tool. For instance if magazine is the media type, then Sports Illustrated or Cosmopolitan is the media vehicle; if TV is the media type then Food Network or “FOX2 News at 10pm” is the vehicle (it can be a cable network or a specific program). Step 5c -– media schedule How will you schedule your media? (continuous, pulsing, flighting)? Explain how your budget will help you make this decision. Step 6 -- IMC – integrating your ad with the rest of the promotional tools Identify and discuss other, non-advertising promotions you will use to coordinate with this ad campaign. Are there personal selling, sales promotions/incentives, public relations and/or social media efforts you’d like to include? (Keep being creative!) Really explore social media strategies using the information from Chapter 3. NOTE: In your book, step 6 is creating the ad but we are substituting IMC in this activity. Step 7 –- evaluating your campaign This is maybe one of the most important steps. How will you evaluate the effectiveness of your campaign? How will you know if it “worked?” How will you know if you should repeat the campaign, or completely revamp it? You can use some of the methods talked about in the lecture or your book.

Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $40,000; Year 2, $80,000; Year 3, $180,000; Year 4, $220,000; Year 5, $280,000; and Year 6, $360,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 4% stock, $100 par, and 100,000 shares of common stock, $20 par.

Required:

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

3. Assuming a market price per share of $206 for the preferred stock and $25 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

Return on Investment, Margin, Turnover

Ready Electronics is facing stiff competition from imported goods. Its operating income margin has been declining steadily for the past several years. The company has been forced to lower prices so that it can maintain its market share. The operating results for the past 3 years are as follows:

Sales: Year 1 $12,000,000, Year 2 $ 9,500,000, Year 3 $9,000,000

Operating income: Year 1 $1,200,000, Year 2 $1,445,000, Year 3 $945,000

Average assets: Year 1 15,000,000, Year 2  15,000,000, Year 3 17,000,000

For the coming year, Ready's president plans to install a JIT purchasing and manufacturing system. She estimates that inventories will be reduced by 70% during the first year of operations, producing a 20% reduction in the average operating assets of the company, which would remain unchanged without the JIT system. She also estimates that sales and operating income will be restored to Year 1 levels because of simultaneous reductions in operating expenses and selling prices. Lower selling prices will allow Ready to expand its market share. (Note: Round all numbers to two decimal places.)

Required: 1. Compute the ROI, margin, and turnover for Years 1, 2, and 3.

Required 2. Conceptual Connection: Suppose that in Year 4 the sales and operating income were achieved as expected, but inventories remained at the same level as in Year 3. Compute the expected ROI, margin, and turnover.

Required 3. Conceptual Connection: Suppose that the sales and net operating income for Year 4 remained the same as in Year 3 but inventory reductions were achieved as projected. Compute the ROI, margin, and turnover.

Required 4. Conceptual Connection: Assume that all expectations for Year 4 were realized. Compute the expected ROI, margin, and turnover.

Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $48,000; Year 2, $96,000; Year 3, $216,000; Year 4, $276,000; Year 5, $336,000; and Year 6, $432,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative preferred 3% stock, $100 par, and 100,000 shares of common stock, $10 par.

Required:

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrearsat the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

3. Assuming a market price per share of $172 for the preferred stock and $15 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $20,000; Year 2, $60,000; Year 3, $90,000; Year 4, $110,000; Year 5, $140,000; and Year 6, $180,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $25 par.

Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0"

2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

3. Assuming a market price per share of $99 for the preferred stock and $30 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $32,000; Year 2, $96,000; Year 3, $152,000; Year 4, $184,000; Year 5, $224,000; and Year 6, $280,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $20 par.

Required:

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

3. Assuming a market price per share of $147 for the preferred stock and $24 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

Calculator

Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $24,000; Year 2, $72,000; Year 3, $108,000; Year 4, $138,000; Year 5, $168,000; and Year 6, $210,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $5 par.

Required:

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

3. Assuming a market price per share of $118 for the preferred stock and $9 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

1. Dividends on Preferred and Common Stock

   Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $30,000; Year 2, $90,000; Year 3, $135,000; Year 4, $165,000; Year 5, $210,000; and Year 6, $270,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, 3% preferred stock, $100 par, and 100,000 shares of common stock, $20 par.

   Required:

   1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

   						Preferred Dividends								Common Dividends
   Year		Total Dividends				Total				Per Share				Total				Per Share
   Year 1		$   30,000				$				$				$				$
   Year 2		90,000
   Year 3		135,000
   Year 4		165,000
   Year 5		210,000
   Year 6		270,000
   										$								$

   2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

   Average annual dividend for preferred	$ per share
   Average annual dividend for common	$ per share

   3. Assuming a market price per share of $165 for the preferred stock and $26 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

   Round your answers to two decimal places.

   Preferred stock	%
   Common stock	%

Check My Work

Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $20,000; Year 2, $40,000; Year 3, $90,000; Year 4, $115,000; Year 5, $140,000; and Year 6, $175,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $100 par, and 100,000 shares of common stock, $10 par.

Required:

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

3. Assuming a market price per share of $160 for the preferred stock and $16 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

chap 12 - 01

Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $40,000; Year 2, $80,000; Year 3, $190,000; Year 4, $220,000; Year 5, $290,000; and Year 6, $350,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 4% stock, $100 par, and 100,000 shares of common stock, $15 par.

Required:

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places.

3. Assuming a market price per share of $313 for the preferred stock and $20 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.