Question
A farm equipment company was considering a direct mail campaign to remind customers to have tractors serviced before spring planting. The campaign is expected to
A farm equipment company was considering a direct mail campaign to remind customers to have tractors serviced before spring planting. The campaign is expected to cost $1,000 and to increase revenue from$45,000 to $50,000. Baseline revenues for tractor servicing (with no marketing) were estimated at $25,000. The direct mail campaign was in addition to the regular advertising and other marketing activities costing $6,000. Contribution on tractor servicing revenues (after parts and labor) averages 60%. What is their Return on Marketing Investment (ROMI)?
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