Homework Help is Here – Start Your Trial Now!
Business
Finance
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
Problem 1PS
See similar textbooks
icon
Related questions
Question

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
Expert Solution
steps

Step by step

Solved in 5 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Valuing Decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS