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Old 06-19-2003, 02:18 AM   #1 (permalink)
gaurav_techie
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Hi All,
As always I would truly appreciate your comments on my essay. I felt that this particluar essay has a lot of loop holes. I did identify some but was unable to identify a few others. Any inputs would be truly appreciated.

Thanx,
Gaurav.

The following appeared as part of a campaign to sell advertising time on a local radio station to local businesses.
“The Cumquat Cafe began advertising on our local radio station this year and was delighted to see its business increase by 10
percent over last year’s totals. Their success shows you how you can use radio advertising to make your business more profitable.”

The statement makes a mention about Cumquat Café that saw its business grow by 10 percent over its previous year due to advertising on the local radio station. The radio station now cites the example of Cumquat Café’s success and claims that advertising with them would make an organization’s business more profitable. Let us examine the claims made from various perspectives.

Firstly, we are told that Cumquat café has seen a 10 percent growth in its business over its previous year. We are also told that Cumquat advertised with the local radio station. However, we are not presented with sufficient evidence that can link these two events. For Example, did Cumquat advertise with the radio station only or did it use other avenues for advertising such as the local newspaper, a web site etc? What percentage of Cumquat’s profits had a correlation with advertising on the local radio station? What percentage of the local station’s audience are potential customers of Cumquat? The statement does not give us enough evidence to confidently answer any of these questions. Without sufficient evidence Cumquat’s success may seem to be a coincidence.

Secondly, from the radio station’s perspective, they do not give us sufficient information for us to conclude how significant a role they played in the success of Cumquat. Given the fact that the radio station is trying to make itself more visible, the onus is on them to show the corporate world what they can do for them in terms of advertising. For Example, how big is their audience? What segments of the population does the station address? Does the station have a multi city presence or are they predominant in their home city? All these questions need answering if we are to understand the impact of advertising on the local station.

Thirdly, Cumquat being a café can advertise using any. This is especially so due to the nature of products that a café offers. However, we cannot confidently say that any industry that advertises on the local radio station would see a rise in profits purely because we do not know enough about the radio station itself. To answer this question, we would need answers to the questions we have asked in the second point above.

In conclusion, we are unable to see if there is a correlation between Cumquat’s recent success and the effect of advertising on the local radio station. The line of reasoning presented to us in the statement seems at best, faulty. The statement could have presented information in terms of statistics both from the station’s perspective as well as Cumquat’s perspective.


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Old 07-07-2003, 10:16 AM   #2 (permalink)
marcin
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Very nice. You have used a lot of examples. I would use one more though. Increase in the profit by 10 % does not necessarily mean that it was a successful year. For the past 4 years it could`ve been 20,30,40,40 respectively. This is another example refuting the thoery that the radio ads contributed to the success of the business.

I find your essays very nice and smooth -good work
MArcin

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Old 07-13-2003, 11:52 AM   #3 (permalink)
gaurav_techie
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hi Marcin,
Thanx for the much needed encouragement . I was kinda wondering why ppl didn't feel like commenting on my essays. Your comments are like a breath of fresh air.

Thanx,
Gaurav
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Old 07-24-2003, 03:57 AM   #4 (permalink)
darklord
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i just browsed thru 2 of u'r essays.... its pretty neat and well organised.... where do u find topics from [bomb]....
am appearing for gmat on 17th october.... only issue with me is essays....[bomb]......
any comments on how to go abt for essays....
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