In a crisis, public relations practitioners may like to think of media as friendly adversaries, but they must anticipate a "feeding frenzy" and adopt "battlefield rules."

When is it advisable to predominantly use sales promotions in a promotion mix?

What will be an ideal response?

Laurie wants to buy a used sports car. She is looking at three: (1 ) a 3-year old Porsche 911 Turbo Cabriolet; (2 ) a 4-year old Ferrari F430; or (3 ) a 4-year old Lamborghini Gallardo

The purchase price, annual operating costs and resale value for each car is given in the table, below. Laurie wants to buy the cheapest of the three cars. Which should she buy? Cash flows for Sports Cars ($000s) Time Porsche Ferrari Lamborghini 0 -150 -206 -190 1 -6 -6 -6 2 -6 -6 139 3 -6 134 0 4 -6 0 0 5 70 0 0 n 5 3 2 NPV = -$169.87 -$110.33 -$76.39 PVIFA 3.99271 2.577097 1.783265 A) Porsche B) Ferrari C) Lamborghini D) Either the Ferrari or the Lamborghini (both the same) E) All three are equally expensive