The promotional group is planning to launch a new promotional campaign in an attempt to attract customers from an area of the community that your store does not currently attract customers. This plan will reach 5,000 holds. The plan calls for spending $250,000 on the campaign. From the initial promotion, the expectation is to obtain an initial margin of $15.00 from each new customer in the store. They have also estimated that each customer will provide a lifetime value of $500. Question 1: Since your company uses door count to determine the effectiveness of the campaign, how many additional customers will the program need to draw from the community to achieve the BAR?
The promotional group is planning to launch a new promotional campaign in an attempt to attract customers from an area of the community that your store does not currently attract customers. This plan will reach 5,000 holds. The plan calls for spending $250,000 on the campaign. From the initial promotion, the expectation is to obtain an initial margin of $15.00 from each new customer in the store. They have also estimated that each customer will provide a lifetime value of $500. Question 1: Since your company uses door count to determine the effectiveness of the campaign, how many additional customers will the program need to draw from the community to achieve the BAR?
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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The promotional group is planning to launch a new promotional campaign in an attempt to attract customers from an area of the community that your store does not currently attract customers. This plan will reach 5,000 holds.
The plan calls for spending $250,000 on the campaign. From the initial promotion, the expectation is to obtain an initial margin of $15.00 from each new customer in the store. They have also estimated that each customer will provide a lifetime value of $500.
Question 1: Since your company uses door count to determine the effectiveness of the campaign, how many additional customers will the program need to draw from the community to achieve the BAR?
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