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1. Using the assumptions provided in Excel Spreadsheet, what is the total number of customers generated from this advertising? 2. If Dr. Corneal’s customers spend $300 on average, what is the total revenue generated from this advertising? 3. The cost to purchase the advertising is as follows: Google Ads: $5,000 Newspapers: $3,000 Magazines: $6,000 Radio:  $1,000 Calculate the overall ROI and the ROI per advertising source. How do these number help you plan your advertising budget going forward? To answer this question, define ROI, explain how ROI is used (see your book), apply the numbers you have calculated and show how you would use these numbers for planning purposes. Note - ROI is expressed as a percent. ROI= (Revenue - Costs)/Costs

1. Using the assumptions provided in Excel Spreadsheet, what is the total number of customers generated from this advertising? 2. If Dr. Corneal’s customers spend $300 on average, what is the total revenue generated from this advertising? 3. The cost to purchase the advertising is as follows: Google Ads: $5,000 Newspapers: $3,000 Magazines: $6,000 Radio:  $1,000 Calculate the overall ROI and the ROI per advertising source. How do these number help you plan your advertising budget going forward? To answer this question, define ROI, explain how ROI is used (see your book), apply the numbers you have calculated and show how you would use these numbers for planning purposes. Note - ROI is expressed as a percent. ROI= (Revenue - Costs)/Costs

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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I need help answering the questions below...

 

1. Using the assumptions provided in Excel Spreadsheet, what is the total number of customers generated from this advertising?

2. If Dr. Corneal’s customers spend $300 on average, what is the total revenue generated from this advertising?

3. The cost to purchase the advertising is as follows:

Google Ads: $5,000

Newspapers: $3,000

Magazines: $6,000

Radio:  $1,000

Calculate the overall ROI and the ROI per advertising source. How do these number help you plan your advertising budget going forward? To answer this question, define ROI, explain how ROI is used (see your book), apply the numbers you have calculated and show how you would use these numbers for planning purposes.

Note - ROI is expressed as a percent. ROI= (Revenue - Costs)/Costs

B C 1 Dr. Corneal's Projected Sales Funnel 2 A 3 4 Prospects (5000) 5 6 Leads Level Wears Glasses 7 8 Leads Level B 9 10 Total Leads Level A+B 11 12 Opportunities 13 14 Customers Fashion Sunglasses 15 16 Total Customers 17 4,500 3,375 Google Newspapers Magazines Radio 3,000 1,000 450 3,825 191 D 96 2,500 1,875 250 2,125 43 E 22 2,250 300 2,550 77 39 F 31 32 Average conversion rate from Opportunity to Customer - 50% 900 100 1,000 10 5 G H 18 19 Assumptions: 20 5,000 people live within 15 miles of Dr. Corneal's store 21 90% use Google regularly, 50% read newspaper, 60% read magazines, 20% listen to radio 22 Based on medical data,on average 75% of the population needs glasses 23 Radio listeners are older, have more eye issues, 90% need glasses 24 10% of people don't need glasses but like fashion sunglasses 25 26 Average Call To Action Response Rates 27 Google 5% 28 Newspapers 2% 29 Magazines 3% 30 Radio 1% I J
Transcribed Image Text:B C 1 Dr. Corneal's Projected Sales Funnel 2 A 3 4 Prospects (5000) 5 6 Leads Level Wears Glasses 7 8 Leads Level B 9 10 Total Leads Level A+B 11 12 Opportunities 13 14 Customers Fashion Sunglasses 15 16 Total Customers 17 4,500 3,375 Google Newspapers Magazines Radio 3,000 1,000 450 3,825 191 D 96 2,500 1,875 250 2,125 43 E 22 2,250 300 2,550 77 39 F 31 32 Average conversion rate from Opportunity to Customer - 50% 900 100 1,000 10 5 G H 18 19 Assumptions: 20 5,000 people live within 15 miles of Dr. Corneal's store 21 90% use Google regularly, 50% read newspaper, 60% read magazines, 20% listen to radio 22 Based on medical data,on average 75% of the population needs glasses 23 Radio listeners are older, have more eye issues, 90% need glasses 24 10% of people don't need glasses but like fashion sunglasses 25 26 Average Call To Action Response Rates 27 Google 5% 28 Newspapers 2% 29 Magazines 3% 30 Radio 1% I J
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