Question
You are the marketing manager for a small chain of shoe stores in the Vancouver area. To boost sales for your stores you decided to
You are the marketing manager for a small chain of shoe stores in the Vancouver area. To boost sales for your stores you decided to bring in a new line of university student focused brands of shoes. To do this you needed to increase your sales team and product training, as well as invest in additional marketing efforts to raise the awareness and purchase of this line of shoes for this new targeted segment of customers.
For the first 3 months of the promotion, you spent $45,000 for additional sales team members and training, and $30,000 for the advertising and promotion for this new line of shoes. This is an addition to your regular overall shoe store marketing budget of $60,000 per quarter. As a result of the new line of shoes campaign you measured that you gained 2,000 new customers.
Calculate the customer acquisition cost for this new line of shoes promotion. (one decimal place)
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