GMAT

Memorandum of reel magazine

GMAT Essay Topic 551 - The following appeared in a memorandum from the marketing department of Reel magazine. "In order to determine the cause of the recent decline in sales of our magazine, we sent a survey to customers who have cancelled their subscription during the last nine months. Results indicate that 80 percent of the 450 respondents feel that Reel contains too many ads. In order to retain current customers and win back customers who have cancelled their subscriptions, we should reduce the number of ads. This solution will not only improve customer satisfaction but also increase our revenue by boosting magazine sales." Discuss how well reasoned . . . Etc.

Author: sy | Date: November 11, 2017 | Score:4.5 | => 5 or 6 Essays, Click Here <=

Memorandum of reel magazine

In a memorandum from the marketing department of Reel magazine, it denoted the results and findings of the survey, which tried to find out the reasons why people cancelled their subscription. The survey showed that many people who answered the survey felt Reel magazine has too much advertisement, thereby Reel magazine concluded it can win back customers if it reduced the number of advertisement. Stated in this way, the conclusion is flawed in three respects.

First, the memorandum readily assumes that most people cancelled the subscription because of abundance of advertisement. However, this memorandum does not show what percent of entire people who stopped buying Reel magazine felt that way. True 80 percent of the 450 respondents answered that way, but what if there were 1 million people who cancelled the subscription? In that case, the answer from 80 percent of the 450 respondents might not be the most reason or crucial reason why people stopped reading the magazine. Therefore, will support the conclusion if the memorandum showed how many people cancelled the subscription during the last nine months.

Secondly, the conclusion that Reel magazine should reduce the number of ads is ignoring the side effect of the action. Even though Reel magazine reduces the number of promotions on the magazine and retain their customers, it is possible that publisher of Reel magazine would suffer financial damage. For example, I presume companies whose ads are on Reel magazine are paying Reel magazine for their advertisement to be on the magazine. Hence, reducing the number of ads means the earning from advertisement will decrease. If the decrease in the earning from advertisement is more than the increase in revenue from readers of Reel magazine, it will lose its profits. Therefore, it is important to consider which will bring more benefit to the Reel magazine, more ads or less ads.

Thirdly, the memorandum stands on the idea that if Reel magazine reduces the number of advertisement, the customer who cancelled subscription will subscribe again. However, the results of survey do not imply this idea in any way. The respondents did answer they were tired of the advertisement, but did not infer they will subscribe for the Reel magazine. Therefore, assuming that the number of readers will increase after reducing the ads is not conclusive. If the survey denoted that the respondents will re-subscribe for the Reel magazine if ads were to be reduced, it would be more convincing.

In conclusion, the memorandum is flawed in the above-mentioned reasons, and therefore unconvincing. This memorandum would be much convincing if it shows the number of total people who cancelled subscription, the pros and cons from reducing the ads, and whether people who cancelled the subscription will come back if they reduce the ads. Without these structures, this memorandum can not be properly evaluated and thus unconvincing.


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