Memo #1 from CEO to Market Analyst: We are consistently seeing more gr

Question

McGraw-Hill

Memo #1 from CEO to Market Analyst

We are consistently seeing more growth in the Northwest sector than in the three other sectors of the United States. Although we are spending equal amounts on advertising and the same product is being marketed across the country, sales fail to meet our expectations in the Northeast, Southwest, and Southeast. We would like to determine how to convince potential customers in other regions that our product is a better buy than the competitors’ products.

Memo #2 from Market Analyst to CEO

Our research suggests that potential customers do not fully understand the benefits of your product; in warmer regions the idea that it might keep the skin cool—rather than just insulating against the cold—is not well understood. In the Northeast, though advertising is as frequent, there are significantly fewer retailers of the product, which may make it less visible in some communities. I recommend developing separate lines of advertisement for each sector of the country that emphasize the specific benefits of the product for that particular area. Also, in regions of dense population, attempts should be made to increase the number of product retailers per capita.

In the marketing analyst’s review of the company’s advertising strategy, it is brought to light that a cause and effect relationship exists between the way advertising is handled and the company’s product sales experiences. Choose the cause and subsequent effect in the table below, based on the market analyst’s suggestions. Make only one selection in each column.

Archit3110 · Answer

from the given info we can say that :
 Memo #1 from CEO to Market Analyst 
Despite having spend equal amount on advertising the product has not been performing well in all regions except North west sector , where as products of competitors seems to be selling well.

Cause : Competitors are succeeding in sectors where this company is not performing well

Memo #2 from Market Analyst to CEO
We can conclude that potential customers do not fully understand the benefits the product; 
Each region has its own set of challenges likewise NE has few retailers and in regions of dense population, the number of product retailers per capita are less.

Effect: Customers do not fully understand all of the product's possible uses.

pintukr · Answer

QUESTION

In the marketing analyst’s review of the company’s advertising strategy, it is brought to light that a cause and effect relationship exists between the way advertising is handled and the company’s product sales experiences. Choose the cause and subsequent effect in the table below, based on the market analyst’s suggestions. Make only one selection in each column.

Memo #1 from CEO to Market Analyst

We are consistently seeing more growth in the Northwest sector than in the three other sectors of the United States. Although we are spending equal amounts on advertising and the same product is being marketed across the country, sales fail to meet our expectations in the Northeast, Southwest, and Southeast. We would like to determine how to convince potential customers in other regions that our product is a better buy than the competitors’ products.

Memo #2 from Market Analyst to CEO

Our research suggests that potential customers do not fully understand the benefits of your product; in warmer regions the idea that it might keep the skin cool—rather than just insulating against the cold—is not well understood. In the Northeast, though advertising is as frequent, there are significantly fewer retailers of the product, which may make it less visible in some communities. I recommend developing separate lines of advertisement for each sector of the country that emphasize the specific benefits of the product for that particular area. Also, in regions of dense population, attempts should be made to increase the number of product retailers per capita.

Here, the Question prompt specifically highlights the following hints for identification of Cause and effect :-

Cause  --- the way advertising is handled

Effect  --- the company’s product sales experiences

1. Customers do not fully understand all of the product's possible uses.
  If interpreted as a CAUSE (referring to the way advertising is handled), there is a corresponding Effect (ie, prompt 3) amongst the given options.

2. Separate lines of advertisement have been developed for each U.S. sector.
 If interpreted as a Cause, there is no corresponding Effect amongst the given options ie, the effect should be on the lines of 'increase in sales in all sectors'

3. Product sales were down in the warmer regions.
  If interpreted as an EFFECT (ie, the company’s product sales experiences), there is a corresponding Cause (ie, prompt 1) amongst the given options.

4. The Northwest sector has had the best sales reports.
 If interpreted as an Effect, there is no corresponding Cause amongst the given options specifically referring to the Northwest sector.

5. Sales locations are more numerous in dense areas of population.
 If interpreted as a Cause, there is no corresponding Effect amongst the given options.

6. Competitors are succeeding in sectors where this company is not performing well.
 If interpreted as an Effect, there is no corresponding Cause amongst the given options.

IMO, the correct answers will be 
1. Customers do not fully understand all of the product's possible uses. --- CAUSE
3. Product sales were down in the warmer regions. -- EFFECT

$!vakumar.m · Answer

In the marketing analyst’s review of the company’s advertising strategy, it is brought to light that a cause and effect relationship exists between  the way advertising is handled and the company’s product sales experiences .  Choose the cause and subsequent effect  in the table below,  based on the market analyst’s suggestions . Make only one selection in each column.

The market analyst brings out that "potential customers do not fully understand the benefits of the company's product" and later recommends that "developing separate lines of advertisement for each sector of the country that emphasize the specific benefits of the product for that particular area" to boost the company's sales in other sectors.

Cause   - Customers do not fully understand all of the product's possible uses.
  Effect   - Separate lines of advertisement have been developed for each U.S. sector.

RahulJain293 · Answer

Memo #2 from Market Analyst to CEO

Our research suggests that potential customers do not fully understand the benefits of your product; in warmer regions the idea that it might keep the skin cool—rather than just insulating against the cold—is not well understood. In the Northeast, though advertising is as frequent, there are significantly fewer retailers of the product, which may make it less visible in some communities. I recommend developing separate lines of advertisement for each sector of the country that emphasize the specific benefits of the product for that particular area. Also, in regions of dense population, attempts should be made to increase the number of product retailers per capita.

Question: Choose the   cause (the way advertising is handled)  and  subsequent effect (the company’s product sales experiences)   in the table below, based on the market analyst’s suggestions. Make only one selection in each column.

IMO:
Question says 'Advertising' --> 'Sales experience'. Hence looking for a pair that shows this cause and effect relationship.
Cause - Customers do not fully understand all the product's possible uses.
Effect - Product sales were down in the warmer regions.

Why other options were wrong for me:

- Separate lines of ad  have been developed  for each US Sector --> we do not know if something is already 'developed'

- The Northwest sector has had the best sales reports --> So? This does not fit cause or effect. Although a good fit for 'effect', I could not find a right cause that matches this tone.

- Sales locations are more numerous in dense areas of population. --> Not true. The Market research analyst's report says otherwise.

- Competitors are succeeding in sectors where this company is not performing well. --> Nothing is mentioned about competitors in the report by the analyst.

TenthCentury · Answer

-delete-

Catman · Answer

Customers do not fully understand all of the product's possible uses . 
 Cause    Yes a possible  cause  for the decrease in the sales as per marketing analyst refer to the line "Our research suggests that potential customers do not fully understand the benefits of your product".

Separate lines of advertisement have been developed for each U.S. sector . 
 ~Incorrect, this is a suggestion recommended by the market analyst refer to the line "I recommend developing separate lines of advertisement for each sector of the country".

Product sales were down in the warmer regions. 
 Effect ,  refer to the line "in warmer regions the idea that it might keep the skin cool—rather than just insulating against the cold—is not well understood." Market analyst mentions this reason for the decrease in sale in the warmer regions.

The Northwest sector has had the best sales reports . 
 ~Incorrect, there is consistent growth in the nortwest sector, but that does not mean it has the best sales report. Also, no cause is supported for this among the option, hence it cannot be the cause.
 
 Sales locations are more numerous in dense areas of population .  ~ Incorrect, this is the recommendation put forward by the market analyst that increase the retail presence in the dense area will increase the market share.

Competitors are succeeding in sectors where this company is not performing well.   ~ Incorrect, this is the view point presented by the CEO and not by the market analyst. Refer to the line "We would like to determine how to convince potential customers in other regions that our product is a better buy than the competitors’ products."

rn1112 · Answer

In the marketing analyst’s review of the company’s advertising strategy, it is brought to light that a   cause and effect relationship exists between the way advertising is handled and the company’s product sales experiences.   Choose the cause and subsequent effect in the table below, based on the market analyst’s suggestions. Make only one selection in each column.

On basis of the market analyst's reasoning, the Cause and effect need to be identified.

Cause --- the way advertising is handled

Effect --- the company’s product sales experiences

1. Customers do not fully understand all of the product's possible uses. 
Customers do not fully understand all of the product's possible uses, product sales will be low. Option 3 highlights the consequential effect. 
 This prompt can serve as a 'Cause'.

2. Separate lines of advertisement have been developed for each U.S. sector.
Overall Effect can not be found out from the other prompts. Effect amongst the given options ie, the effect should be on the lines of 'increase in sales in all sectors'.
 
3. Product sales were down in the warmer regions. 
Low product sales can be attributed to Customers not fully understanding the product's possible uses. (as given in Option 1)
 This prompt can serve as a 'Effect'.

4. The Northwest sector has had the best sales reports.
No suitable Cause can be found out from the other options for the Northwest sector reporting best sales.

5. Sales locations are more numerous in dense areas of population.
No linkages found for this fact from the other options.

Cause (1. Customers do not fully understand all of the product's possible uses)
Effect (3. Product sales were down in the warmer regions)

RheaBhatia0302 · Answer

As stated in the Market Analyst's reply to the CEO,

Hence, we can conclude that since  customers do not fully understand all of the product's possible uses  (Cause)  ,  product sales were down in the warmer regions.  (Effect)

Oppenheimer1945 · Answer

Memo #1 from CEO to Market Analyst

We are consistently seeing more growth in the Northwest sector than in the three other sectors of the United States.  Although we are spending equal amounts on advertising and the same product is being marketed across the country,  sales fail to meet our expectations in the Northeast, Southwest, and Southeast.  We would like to determine how to  convince potential customers in other regions that our product is a better buy than the competitors’ products.

Memo #2 from Market Analyst to CEO

Our research suggests that potential customers do not fully understand the benefits of your product ; in warmer regions the idea that it might keep the skin cool—rather than just insulating against the cold—is not well understood. In the Northeast, though advertising is as frequent,  there are significantly fewer retailers of the product, which may make it less visible in some communities.  I recommend developing  separate lines of advertisement for each sector of the country that emphasize the specific benefits of the product for that particular area.  Also,  in regions of dense population, attempts should be made to increase the number of product retailers per capita.

Customers do not fully understand all of the product's possible uses. ( Cause )

Separate lines of advertisement have been developed for each U.S. sector. ( Cause )

Product sales were down in the warmer regions. ( Effect )

The Northwest sector has had the best sales reports. ( Effect )

Sales locations are more numerous in dense areas of population. ( Cause )

Competitors are succeeding in sectors where this company is not performing well. ( Effect )

Sajjad1994 · Answer

Hello Everyone!

OA to this question is:

Cause:  Customers do not fully understand all of the product's possible uses.
 Effect:  Product sales were down in the warmer regions.

The competition mode is off now.

pintukr, RahulJain293, Catman, and rn1112 did a good job.

Sajjad1994 · Answer

Official Explanation

The analyst determined that people in the warmer regions were not purchasing the product because they did not understand that its insulating properties could have a cooling effect. They believed the product was strictly for protection against the cold. As a result, they were not buying as much of the product as the company had hoped.

Answer:
 Cause:  Customers do not fully understand all of the product's possible uses.
 Effect:  Product sales were down in the warmer regions.

Ngocvb10 · Answer

The passage never mentioned that "sales went down in warmer regions". It only mentioned that "the growth of warmer regions is not as good as Northwest", which means sales could still grow in warmer regions. I doubt about the quality of the question

Memo #1 from CEO to Market Analyst: We are consistently seeing more gr

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Cause	Effect
		Customers do not fully understand all of the product's possible uses.
		Separate lines of advertisement have been developed for each U.S. sector.
		Product sales were down in the warmer regions.
		The Northwest sector has had the best sales reports.
		Sales locations are more numerous in dense areas of population.
		Competitors are succeeding in sectors where this company is not performing well.