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. Shed like to expand and open a larger frame selection including high-end sunglasses. Shes 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. Corneals 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. Corneals 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

Newspapers: $3,000

Magazines: $6,000

Radio: $1,000

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

1 YS Tv Ames 5,000 people the web 15 miles De Coma Wiele reply, send epoper, en die Maalaimalar eye 7shmi rai Radio de 10 people who Are Colete Rrape Rates Google Ne Magari Ratio Aragate from Opportunity to Corso Clipboard Font F Alignment SIGN IN TO OFFICE It looks like your stored credentials are out of date. Please sign in as ACARB 2977 P26 Newspapers Magazines Radio 3.000 B 1 Dr. Corneal's Projected Sales Funnel 2 3 Google 4 Prospects (5000) 4500 5 Leads Level A Wears Glasses 8. Leads Level 8 9 Fashion Sunglasses Total Leads Level AB 11 Opportunities 191 1,875 250 100 2.550 10 Customers 5 Total Customers 17 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 2 Based on medical data on average 75% of the population needs glasses Radio listeners are older, have more eye issues, 90% need glasses 2 10% of people don't need glasses but like fashion sunglasses 25 Average Call To Action Response Rates 27. Google 596 Newspapers 296 20 Magazines 3% 30 Radio 1% 31 Average conversion rate from Opportunity to Customer 50% Sheet1 Type here to search o BI 1 YS Tv Ames 5,000 people the web 15 miles De Coma Wiele reply, send epoper, en die Maalaimalar eye 7shmi rai Radio de 10 people who Are Colete Rrape Rates Google Ne Magari Ratio Aragate from Opportunity to Corso Clipboard Font F Alignment SIGN IN TO OFFICE It looks like your stored credentials are out of date. Please sign in as ACARB 2977 P26 Newspapers Magazines Radio 3.000 B 1 Dr. Corneal's Projected Sales Funnel 2 3 Google 4 Prospects (5000) 4500 5 Leads Level A Wears Glasses 8. Leads Level 8 9 Fashion Sunglasses Total Leads Level AB 11 Opportunities 191 1,875 250 100 2.550 10 Customers 5 Total Customers 17 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 2 Based on medical data on average 75% of the population needs glasses Radio listeners are older, have more eye issues, 90% need glasses 2 10% of people don't need glasses but like fashion sunglasses 25 Average Call To Action Response Rates 27. Google 596 Newspapers 296 20 Magazines 3% 30 Radio 1% 31 Average conversion rate from Opportunity to Customer 50% Sheet1 Type here to search o BI