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Justine runs a business selling hockey sticks in Canada and generally expects to sell about $15,000 worth of sticks per month (Canadians play roller hockey
- Justine runs a business selling hockey sticks in Canada and generally expects to sell about $15,000 worth of sticks per month (Canadians play roller hockey in the summer). In June, she runs a radio advertising campaign which costs $1500. As part of her advertising campaign she offers a $5 discount on any hockey stick (the sticks retail for $50 normally with a margin of 35%). In June she records sales of $22,005.
- What is the lift % from the advertising campaign in both dollars and units?
- What is the cost to Justine per incremental sales dollar she saw if you ignore the discount?
- What is the Return on Marketing Investment if you factor in the discount?
- If she could get the manufacturer to drop the price she pays for hockey sticks by $1.50, what would be the pass through percentage of her discount?
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