please answer all... parts of the question within 30 minutes. make sure the explanation and reasons are explained in very detailed manner , Attempt the answer only if your are 100% sure that its correct. else leave it for other tutor otherwise i will give negative ratings and will also report your answer for unprofessionalism. Make sure the answer is 100% correct and is not copied from anywhere. ATTEMPT THE QUESTION ONLY IF YOU ARE 100% CORRECT AND SURE. ELSE LEAVE IT FOR ANOTHER TUTOR. BUT PLEASE DONT PUT WRONG ANSWER ELSE I WILL REPORT.

Author Brad Sugars, said the following about the Acquisition cost below what we need to do to build a very big businesses. understand that our business is the business of buying customers. what's our business. the business of now what do I mean by that well your acquisition cost what do we call it its acquisition cost is let's say you spent a thousand pounds running an ad and you got 10 new customers what of each customer cost you to buy them a hundred pounds per customer does that make sense so when i look at your business i look at what are you spending to buy a customer I'm then also looking at how much do you get from that customer so if you spent a hundred pounds on a customer what how much money do you think you want to make on the first sale more than 100 pounds don't you does that make sense now if let's imagine we could work a strategy whereby you would spend 10 pounds to get a customer that spent 20 pounds with your gave you 20 pounds profit on their first sale if you could go out spend 10 pounds in marketing and get 20 pounds in net profit in the first sale from a customer how often could you spend the 10 to get 20 as many tens as you had does that make sense so let me get a draw an example so that you can actually understand how this works I did okay I'll use a bakery it worked with a client under bakery and Wellington New Zealand little bakery he runs an advertisement and now he's add every week he had an ad budget of three hundred dollars a week so every single week his little bakery Spence router bucks now here's the problem i asked him how many new customers do you get for your three hundred dollars a week guess what his answer was I don't my answer to him isn't that bloody stupid yeah that's right you know you think about this for a second if you're spending three hundred a week and on wages would you check they turned up for work or not hello so if you're running three hundred a week on an ad of course you should be seeing does it work or not it blows my mind the number of business owners that don't know that right down these two words test and measure test and measure if you want to be a marketing genius the all you have to do is measure the results if you're right an ad gets great results keep running it if you run it out and it doesn't get great results stop running it you should ask every single person that buys from you by the way how did you find out about us it would that be difficult to have a little thing by the register or by the phone by the way how did you find out about us you mark it off what will you find after a couple of weeks of measuring those things what ads are working and what ads don't work most people guess at these things therefore they don't make good business decisions so here's this guy in the bakery running his ad surrounded week I said listen give me an estimate how many new customers do you think you get a week from the ad do you get like 500 a week from it do you get you know and I know that that was being facetious with him cause he only had about 200 customers a week that he saw so I asked him a simple thing how many do you do you get from he said I probably 10 now I know he was over estimating but let's pretend he did get 10 customers from it what's it cost him to buy each customer 30 now here's the problem how much do you think he sold to a new customer on their first purchase from him four bucks 50 so how much was he losing to buy every new customer 25, 50 on every customer he was losing when he bought them in now at 450 average sale he didn't know how much repeat business he got he didn't know their lifetime value he didn't know any of this sort of stuff do you think he was very happy to learn that he was losing 25, 50 for every new customer yes or no not a chance write this down repeat business equals profit repeat business equals profit I can tell how profitable of business will be by how many repeat customers they get cuz seat buying customers is expensive now how many of you like to learn how I got his business to buying customers for less than a dollar apiece would anyone like to know that lesson say yeah now if he was buying him at less than a dollar apiece do you think you could afford to buy unlimited customers yes or no of course he could so here's what we did we took his advertisement which was a name rank and serial number add you'll know what i mean by name rank and serial number had what was at the top of the ad company name what's the stupidest thing to put at the top of an ad company name who cares about your name up in lights you and maybe your mother you know she doesn't buy too much i would guess so here's the point you gotta write a good at so we turn these ad around I worked up and I said to him listen what we're going to do is going to run a new advertisement it's gonna say free chocolate eclair just cut out and bringing this coupon Sabella I couldn't possibly uh someone on how much does it cost you to make it clear so how about thirty cents in hard costs I said great so we're gonna run this a super brown I couldn't possibly do that so what do you mean said you realize how many hundreds of people in this town would come in for a free Eclair proof that he was in New Zealand er it's only one team we care about beating more than you English that's the Kiwis I said how many hundred you reckon had come in he said hundreds I said would you get three hundred in at least three hundred down to a dollar thirty on his guess first week he ran the ad 587 replies that brings it to less than a dollar a piece to buy a customer we changed the script for the people on the front desk so that they could actually make sales to all those people 16 out of every 17 people that came in for the eclair grab declare and bought other things we boosted the average sale to 550 by training the sales / sales force at the front counter one in every 17 people came in grab the eclair did a runner okay probably all related to each other but you look at this our job is to not sell customers our job is to buy customers the question is at what price are you paying for them now raise you and if you do actually have that number you know it down to pounds and pence you've measured that number precisely hands up if you know that so we got what about a 10 of you in the room the rest of you what's that mean you've got massive room for do you think the day you learn that number is going to be a fun thing no it's not because you're gonna find out that you plan a lot more for a customer than you thought you were playing when you start measuring it you're gonna sit there go oh that hurts but the good part about it is now that we know the number we can improve it see I look at these things time after time our job is to buy customers actually let me give you one of my old businesses a dog food business called trophy dog food we've made a fresh dog food so it was a premium-grade dog food it wasn't home to live it so we're delivered to your house it was delivered by a veterinary nurse who would do a 21-point health check on your dog okay so while though there's a premium product premium service also means what premium price and premium profit okay which is always important so here I was running this business and by the way business can be fun in that business we had a guarantee the guarantee read if you if your dog should ever die while you're a customer of ours we will buy you a new dog what sort of dog do you think we bought people big dogs no no I had a poodle yes but a rock pile is much better than a poodle they eat poodles you know it's amazing what you can do with it you know and you have fun with it but in that business I'm gonna give you some numbers now once i give you these numbers you will know enough to know our marketing budget in that business my first sale do a brand new customer was a hundred and eight dollars on average that was our first sale their first six weeks supply of dog food so they would get that we would deliver it to them out of that hundred eight dollars we had a $38 net profit 38 of that was net profit to us okay after all the costs are taken into account so you now have enough information to know my marketing budget what was it thirty-eight dollars per customer any advertisement I ran that bought me a customer for less than thirty eight dollars where my acquisition cost was below thirty eight dollars for a new customer was a good ad I could keep running it forever does that make sense hello so here I was I'll give you an example my radio advertisements radio ads bought me customers for twenty two dollars a piece so I put out 22 I get back 38 how often can i put out 22 as often as I want long as we can keep up with the demand does that make sense see the radio station say to me how often do you want us to run your ad I said you can run it as often as you like but what do you mean well as often as you want to run the ad you can run the ad cuz I know that it cost me twenty two bucks to buy a customer now there is a diminishing value once you run it too often but the point of it is my TV ads bought me customers at four dollars fifty do you think I was pretty excited about a four dollar fifty acquisition cost yes or no yeah 450 out 38 back in the first sale our game our aim of marketing is to buy customers for less than the profit on the first sale. Read the above and answer the attached questions Briefly but thoroughly address each of the following. Note that some questions have more than one issue for you to address. Please number each response. What formula did he urge us to write down? How does this relate to previous concepts we have covered in the course? What simple explanation does he give to help understand acquisition costs? Hint: He says this is the aim of marketing...)