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i have to fill in the white highlighted spots, those are the answers i need. There is also these questions that might help Marketing Analytics:
i have to fill in the white highlighted spots, those are the answers i need. There is also these questions that might help
Marketing Analytics: The Profit Equation Kal Stephens recently opened a mobille dog grooming business named Waggin' Clean in the Dallas suburb of Frisco, TX As a relatively new competitor in the market, Kal knows that he must find more customers quickly if his business is going to survive. There are many competitors in the Dallas market with service prices ranging between $40 and $100. To position his business competitively, Kalhas decided to charge $60 for his dog grooming services, Kars business has fixed monthly expenses of $2000 which covers his salary and the payment on his mobile grooming van. Additionally, Kal has variable expenses of $20 per service for his supplies, variable labor expenses, and gas Even with his competitive price, Kal's business is not reaching its potential. Kai has the ability to service 8 canine clients per day, 6 days appointments on average each day. Kai knows he needs to do some marketing to increase his client base. To Increase his bookings. Kalis deciding between two different promotional marketing campaigns. Kal is deciding between running an advertisement in a local Dallas magazine and creating a $10 off coupon direct mail campaign. The magazine ad Kal is considering has an advertising cost of $1000 while the advertising cost for the direct mailing is $500. Based on his research. Kal believes that the magazine advertisement would result in a 25 percent increase in customers (120 customers per month) while the direct mail coupon would result in a 55 percent increase in customers (150 customers per month). The goal of this activity is to understand the profit equation and the relationship between sales, revenue, and costs. Keep in mind that: Profit - Total Revenue - Total Costs. Total Revenue (TR) = Price (P) x Quantity Sold (0) Refer to the formulas above and the spreadsheet below to help answer the questions that follow. The spreadsheet fields highlighted in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns E to G Start by entering the initial values into columns 8 to D. Then review the questions below and adjust the values in columns B to D to determine the correct answers. A D G 1 Initial Value Magazine No promotion Coupon direct Initial Value Initial Value advertising Magazine No promotion mail Coupon direct advertising mail 2 Number of clients per month 96 120 150 3 List price for service $ 60.00 $ 60.00 $ 60.00 $ 60.00 $ 80.00 4 Total Revenue (Clants X List Price) $ 0.00 $ 0.00 $ 0.00 $ 5,760.00 $ 7.200.00 $ 9,000.00 5 Monthly operating costs (Fixed cost. Clients x Variable Cost) $ 2,000.00 $ 2,000.00 s 2,000.00 $ 3.920.00 $ 4,400.00 $ 5,000.00 6 Advertising cost $ 1,000.00 $ 500.00 7 Cost per coupon $ 1000 3 Coupon expense (Cients X Cost per Coupon) $ 0.00 $ 1,500.00 9 Profit (Total Revenue - Total Cost) 5 (2,000,00) 5 (2.000,00) 5 (2.000.00) 5 1,840.00 $ 1,800.00 $ 2,000.00 10 1. Based on the data provided in the marketing dashboard, what type of promotional marketing effort. If any, should Koi invest in to Increase the number of canine customers and profit? (Click to select) 2. Kai feels strongly that putting a coupon in the market will dilute the perceived value of his services, so he really wants to pursue the magazine advertising option Kai can change the size of the ad which will affect the cost and the effectiveness of the ad. Which combination of advertising cost and responsiveness (number of new customers) maximizes his profit? (Click to select) 1. Based on the data provided in the marketing dashboard what type of promotional marketing effort, if any, should Kai invest in to increase the number of canine customers and profit? (Click to select) 2. Kai feels strongly that putting a coupon in the market will dilute the perceived value of his services, so he really wants to pursue the magazine advertising option Kal can change the size of the ad which will affect the cost and the effectiveness of the ad. Which combination of advertising cost and responsiveness (number of new customers) maximizes his profit? (Click to select) 3. Another option that Kol could consider is changing the value of the coupon. Not surprisingly, the larger the coupon, the more customers Kal can expect. A $2 coupon gets him 120 clients per month, a $5 coupon gets him 135 clients per month, a 510 coupon gets him 150 clients per month, a $15 coupon gets him 175 clients per month, and a $20 coupon gets him 200 clients per month Which customer/coupon combination maximizes Kal's profits? (Click to select) 4. To maximize his profit, Kal should adopt which of the following strategies? (Click to select) 5. Instead of utilizing a promotional marketing tactic, Kal has decided to change the price of his product in an effort to increase his customer base and maximize his profit. The lower the price, the more customers Kal can expect to attract. Which customet/price combination will maximize Kal's profit? (Click to select) 1. Based on the data provided in the marketing dashboard, what type of promotional marketing effort, if any, should Kai invest in to Increase the number of canine customers and profit? Coupon direct mail 2. Kai feels strongly that putting a coupon in the market will dilute the perceived value of his services, so he really wants to pursue the magazine advertising option Kai can change the size of the ad which will affectthe cost and the effectiveness of the ad. Which combination of advertising cost and responsiveness (number of new customers) maximizes his profit? 130 clients per month, $1100 advertising cost 3. Another option that Kal could consider is changing the value of the coupon. Not surprisingly, the larger the coupon, the more customers Kal can expect. A $2 coupon gets him 120 clients per month, a $5 coupon gets him 135 clients per month, a $10 coupon gets him 150 clients per month a $15 coupon gets him 175 clients per month, and a $20 coupon gets him 200 clients per month Which customer/coupon combination maximizes Kal's profits? 135 clients per month, $ coupon 4. To maximize his profit, Kal should adopt which of the following strategies? Maximize revenue while simultaneously minimizing costs 5. Instead of utilizing a promotional marketing tactic, Kal has decided to change the price of his product in an effort to increase his customer base and maximize his profit . The lower the price, the more customers Kal can expect to attract. Which customer/price combination will maximize Kal's profit? 550 pnice, 140 clients per month Step by Step Solution
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