A marketing manager has access to the following data: CLV 10 years = $15,670 ROMI Campaign 1 = 35.76% Respond Rate = 10% ROMI Campaign 2 = 34.76% Respond Rate = 7% ROMI Campaign 3 = 36.76%. Respond Rate = 11% Retail Mark-Up = 102% Wholesaler Mark-Up = 101% Manufacturer Mark-Up = 99% The manager has received complains from consumers that the price of his product is too expensive for them to afford. Consumers indicate that the quality and the characteristics of the product are excellent but it is out of their economic reach. What quick suggestion could be provided, given the information collected? Select one: a. To eliminate all distribution channel members b. To sell directly to the consumer c. To negotiate will all channel members a reduction on Markups d. To reduce manufacturer pric e. There is need of more information to provide a solution From the previous CLV question answer the following: Should the manager reduce loyalty benefits for customers that spend less than $2,000 in 5 years? a. Select one: Most likely since the average CLV is higher than 2,000 b. No, since the average CLV is lower than 2,000 c. Not necessarily, since the average CLV is 2,000 d. We need more information to answer this question Sage Co has fixed costs of $10M, with variable costs of $100 per unit and expects unit sales of IM. Suggest the price for Sage products if: a) it wants to earn 25% markup on Sales b) it wants a 20% ROI over the initial investment of $10M ANSWER Sage should have a price tag of if it wants to earn 25% markup on sales. Sage should have a price tag. of if it wants a 20% ROI 146.66 112.25 110.0 10.1 14.66 11.22 - A marketing manager has access to the following data: CLV 10 years = $15,670 ROMI Campaign 1 = 35.76% ROMI Campaign 2 = 34.76% ROMI Campaign 3 = 36.76% Retail Mark-Up = 102% Wholesaler Mark-Up = 101% Manufacturer Mark-Up = 99% The manager wants to know of his rewards program should be modified/updated give the information provided Reward Program Client Purchases Discount $1,000 - $5,000 10% $5,001 - $10,000 15% $10,001 or more 20% Select one: a. Yes, the program should be updated given that the CLV average is higher than all the brackets of the rewards b. No, the program should stay the same given that the CLV average is higher than all the brackets of the rewards c. It is inconclusive, given the information provided d. Yes, the program should be updated given that the CLV average is lower than all the brackets of the rewards e. No, the program should be updated given that the CLV average is lower than all the brackets of the rewards A marketing manager has access to the following data: CLV 10 years = $15,670 ROMI Campaign 1 = 35.76% Respond Rate = 10% ROMI Campaign 2 = 34.76% Respond Rate = 7% ROMI Campaign 3 = 36.76%. Respond Rate = 11% Retail Mark-Up = 102% Wholesaler Mark-Up = 101% Manufacturer Mark-Up = 99% The manager wants to know what Campaign will you recommend implementing given the information collected Select one: a. Campaign 1 should be implemented since the ROMI is positive and the respond rate is more achievable. b. Campaign 2 should be implemented since the ROMI is positive and the respond rate is more achievable. c. Campaign 3 should be implemented since the ROMI is positive and the respond rate is more achievable. d. Given the respond rates provided, any campaign would be successful e. We need to know the marketing expenses to make an adequate recommendation. None of the campaigns should be implemented given the low respond rates achieved on each 1
