can someone pleaae explain this to me? i do not understand it
SALES FUNNEL EXERCISE (See spreadsheet) A local eye doctor, Dr. Corneal, is interested in expanding her business. The retail store next to her medical office is available for rent. She'd like to expand and open a larger frame selection including high-end sunglasses. She's already built an attractive website and now she is planning on advertising to increase her business. Her advertising options include: Google Paid Display Ads Local Newspaper Advertising Local Magazine Advertising Radio Advertising For each form of advertising, she has created a separate landing page to track site visitors generated from each ad. For this assignment, you are going to fill in the excel chart, using Chapter 13 as a guide and then answer the questions below. To start you off, Dr. Corneal is providing you with her definitions of Prospects, Leads, Opportunities, Customers. Definitions: Prospect - Anyone who lives within 15 miles of Dr. Corneal's medical practice. Lead - Anyone who lives within 15 miles (a prospect) who wears glasses or is interested in fashion sunglass frames. Opportunity - Anyone who lives within 15 miles (a prospect) who wears glasses or is interested in fashion sunglass frames (a lead) and responds to a call to action. Call to Action - the ads include a call to action that lead potential customers to a landing page offering 20% off on the first exam. Customer people who purchase as a result of the promotion Questions: 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 rovenuo generated from this advertising? 3. The cost to purchase the advertising is as follows: Questions: 6 8 9 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 10 1 12 13 14 15 Newspapers: $3,000 Magazines: $6,000 Radio: $1,000 16 17 18 19 Using these costs and the revenue generated from each ad source, 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 20 21 22 23 24 fx B C D E F G H 3 Google Newspapers Magazines Radio 4 Prospects (5000) 4,500 2,500 3,000 1,000 5 6 Leads Level A 7 Wears Glasses 3,375 1,875 3,000 4,000 8 Leads Level B 9 Fashion Sunglasses 500 250 100 10 Total Leads Level A+B 2,550 11 12 Opportunities 191 10 13 14 Customers 5 15 16 Total Customers 17 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% Sheet1 + Ready portunities 191 10 ustomers 5 otal Customers Assumptions: 5,000 people live within 15 miles of Dr. Corneal's store 90% use Google regularly, 50% read newspaper, 60% read magazines, 20% listen to rac 2 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% 31 32 Average conversion rate from Opportunity to Customer - 50% 35 36
