Item$11$

Time Remaining $1$ hour $1$ minute $44$ seconds$01$:$01$:$44$

Item $11$

Time Remaining $1$ hour $1$ minute $44$ seconds$01$:$01$:$44$

Return on Marketing Investment: Keep Up with Jones

In order to evaluate the success of any Integrated Marketing Campaign the marketer must calculate the Return on Marketing Investment $($ROMI$).$ The ROMI informs the marketer as to which IMC activities $($advertising$,$ social media, key words, etc.$)$ generate the greatest return $($sales$).$ This important metric guides future resource allocation decisions.

To calculate ROMI you will need to use the following formula:

Gross Margin $$ Marketing Expenditure

ROMI $=-----------------------------------------------------------------\backslash$times $100$

Marketing Expenditure

In the following exercise, you$$ll evaluate the current IMC media buys to promote a product or service and evaluate where future resources should be directed.

Carefully read the scenario below and then answer the questions that follow. You will need to identify the various IMC elements $($advertising$,$ social media, promotions, etc.$),$ the cost of each element, and then the sales generated by each element.

Questions $1-10$ focus on three key data elements needed to calculate ROMI for each media:

$1)$ Marketing Expenditure the cost to purchase each IMC element

$2)$ Sales Generated by IMC Element

$3)$ Gross Margin measured as sales $\backslash$times $($check the case for specific number$)$

Be prepared to make recommendations for future social media buys. Refer back again to the definition of$,$ and formula for calculating, ROMI.

Bryce Jones, owner and founder of $$Keep Up with Jones,$$ is attempting to become an online influencer by building his personal lifestyle brand online. In addition to selling his own product line of men$$s fashion and accessories, Keep Up with Jones also provides consumers with advice on how to use thrift$-$ store and flea$-$market finds to create a high$-$fashion wardrobe and home decor. To encourage consumers to these retailers, he offers them advertising opportunities on his sites.

Bryce has had some success on YouTube and Instagram, both of which show growing numbers of likes and followers. Bryce knows that in order to be successful online, he has to attract followers and generate $$likes$$ on various social media platforms. To help drive traffic to these sites, he has decided to purchase key words from Google.

His first challenge is to figure out which key search words best represent his lifestyle brand; these key words should correspond with the ones that consumers actually use to seek out his unique offerings. To identify what these words are, Bryce conducts a small market research study and identifies the following: $$thrift store style,$$flea market style,$$discount fashion,$$ and $$discount men$$s clothing.$$

Now that Bryce has identified the key search words, his second challenge is to plan his budget. Bryce decides to break his costs$-$per$-$day down by confidence levels. He spends $$30$ per day on words in which he has great confidence, $$20-$ $$25$ per day on those in which he has less confidence, and $$10$ per day on those in which he has the least confidence. He uses Google Analytics to track which keywords generate the best response. Bryce also uses a cost of $20\%$ of sales to calculate Gross Margin.

The following chart shows his numbers.

Keywords Cost per day Clicks Sales Gross Margin

Thrift store style $$30200$ $$200$ $$160$

Flea market style $$25175$ $$125$ $$100$

Discount men$$s fashion $$20250$ $$150$ $$120$

Discount men$$s clothing $$10100$ $$40$ $$32$