A firm recently spent $100 on Google AdWords and generated 100 extra visits to the firm’s web site, 5 of which resulted in a purchase. To pay for the change, they dropped the banner advertising on ESPN.com, saving $1000, but which also reduced the number of visits to their web site by 500, and 20 fewer sales. Sales from visitors from ESPN.com were, on average, 25% higher than sales from visitors from Google AdWords. Evaluate the decision to shift advertising money from ESPN.com to Google AdWords.

A firm recently spent $100 on Google AdWords and generated 100 extra visits to the firm’s web site, 5 of which resulted in a purchase. To pay for the change, they dropped the banner advertising on ESPN.com, saving $1000, but which also reduced the number of visits to their web site by 500, and 20 fewer sales. Sales from visitors from ESPN.com were, on average, 25% higher than sales from visitors from Google AdWords. Evaluate the decision to shift advertising money from ESPN.com to Google AdWords.

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter1: An Overview Of Strategic Marketing

Section1.2: Dollar Shave Club: The Company For Men

Problem 1C

See similar textbooks

Similar questions

Willow is habitually late in joining Zoom meetings for her job. Her boss and colleagues are distracted when she joins late and end up repeating information provided earlier in the meeting. Willow’s boss decides to establish a program where everyone who signs in on time for the Zoom meeting will be entered into a drawing for a $20 Starbucks gift card. A name is drawn at the end of the month (i.e., after two meetings). Willow starts joining the Zoom meetings on time. Which type of differential reinforcement is being used? Explain how you know it is the type of DR you identified:
Bashaer is a millionaire but always buy a TOYOTA ACCORD even though he can afford Mercedes Benz sports car. Nayef on the other hand cannot afford to buy BMW, but he made a bank loan to purchase the BMW Coupé for half a million dollars. Explain why they choose those cars by describing through the Customer’s Lifetime Value (CLV) Assessments. Explain the importance of the Customer Profile Components of Nayef and Bashaer.
A.2 X is a marketing services company, providing consultancy to a range of business clients. As part of its strategic planning process, X has made several changes that seem to have had an impact on its business environment. Evaluate each factor according to Porter’s Five Forces model analysis. X and its rivals have managed to persuade the Government to require all marketing services companies to complete a time-consuming and bureaucratic registration process, and to comply with an industry code of conduct. This represents a decrease in _____1_____. X has persuaded its entire staff to sign a new contract which prevents them for working for any rival company for a period of two years, should they resign. This represents a decrease in _____2_____. Use the options below to fill in the missing words in gaps 1 and 2. Competitive rivalry Threat of new entrants Power of customers Power of suppliers Threat of substitutes
A. Being a consumer of cookies, what are the qualities do you consider before buying the cookies at hypermarket? B. What will be the role of quality control inspector in this production process of cookies? Briefly explain. C. A small percentage of cookies is stored temporarily in the company’s warehouse, but they must be shipped shortly because of their limited shelf life due to not using preservatives. Based on this statement, what are the advantages and limitations associated with not using preservatives in cookies by Lew-Mark?
SCENARIO 2: Misleading for Good Purpose Vince is the inspector in charge of their local police station. The police station building is in direct need of repairs, but hasn’t received any grants from the government for years. One day, a typhoon hits a nearby area that damages most of the houses and shops. Although Vince’s police station gets partially damaged, most of the structure remains intact. Due to the incident, the government will send a disaster assessment team to ascertain the level of damage and will provide relief money for the affected areas. The Deputy Superintendent Mr. Simon, orders Vince and says: “Hire some laborers and destroy the remaining structure of the police station building. When the disaster assessment team comes, tell them that the building collapsed because of the typhoon, and ask them to give priority in funding the rehabilitation of our police station. After all, it is one of the most important public offices in town.” Vince wants to do the right thing and…
Your line manager, Ms Lionheart, has collected and scrutinised performance data for the company. She was concerned that the inventories were high for certain products which had resulted in significant price reductions and losses for the company. At the same time, the company had run out of stock for other items early in the season resulting in unsatisfied customers and lost sales. Ms Lionheart has concluded that the problem was not with the specific products carried in the stock, but with the quantities ordered by the procurement department for two popular products; Dog Ball Launcher and Lightweight Dog Lead. Dog Ball Launcher is a product carried by the company for the past four years. Quarterly demand data for the past four years are shown in table 1. Last year the company seemed to always be out of stock for this item. The model used by the procurement department to forecast demand for this product over the last two years has been Multiplicative Seasonal model based on seasonal…
week 7With regard to “Consumer Perceptions of Price, Quality, and Value: A Means-End Model of Synthesis of Evidence,” comment on the problem of perceived versus objective quality. Provide examples. How does this affect the marketing of services?2Think of two creative ideas for services to be provided by the grocery business industry. Be very specific in terms of the rationale behind your approach, and the systematic procedures (e.g., questionnaire) you would use to introduce your services to the market.In the health care industry, what other ideas do you have for providing better services to customers? Analyze and discuss your judgment about whether marketing in this industry is different because human life is involved.week 8″National Cultures in Four Dimensions: A Research-Based Theory of Cultural Differences Among Nations,” is considered seminal in several fields, including marketing, international business, and organizational development. Based on your…
When performing sales mix analysis , which one of the following is false : a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point b. Making changes to the sales mix will likely cause a change in the breakeven point c. The sales mix is usually assumed to be remain the same . d. Shifting the sales mix to the product with a lower contribution margin will likely ncrease the overall contribution margin e. Normally the calculation of the breakeven point for multiproduct is more complicated than that for a single product
1. With respect to a cause – effect (fishbone) diagram, which of the following statements are true? a) The effect is critically analyzed to relate it to the causes of the problem b) Suppliers, Distributors and Top Management are the entities analyzed in the cause section of the fishbone diagram c) The targeted improvements are generally represented as the “effect” in the fishbone diagram d) None of the above 2. A fastfood joint offers a home delivery with a promise of 20 minute window for delivery. On a particular day there was considerable delay in delivery on account of heavy traffic in the city. Since several customers started calling the fastfood joint, the unit manager put the phone in automatic answering mode, which merely repeated "We are on our way to your place". Which of the following statements are true with respect to the service quality? a) The customers would not have been affected much by this behavior as they have been given a response b) The service quality will…
Home-Style Cookies has decided to implement an employee suggestion to open a retail cookie shop in the front area of their manufacturing building in Hudson, New York. The employee offices currently occupying that space can easily be moved to the production area and there is ample parking for customers. Even though the plant is located in a small town, it is easily accessible and visible from the scenic highway which leads to Manhattan, New York. Through research and initial consumer testing, the retail shop will offer individual cookies for sale, pre-packaged dozen cookies (one kind of cookie), and gift cookie assortments in logoed tins in two sizes, 2-dozen and 3-dozen. The Home-Style executive team has hired you as a consultant to create the initial plan for the new retail shop. They have given you the first three months’ forecast, represented in the following table (Retail Shop Forecast). Embed your service blueprint in your document or submit it separately. Month Chocolate…
Grain dust is pound for pound more explosive than coal dust or gunpowder. Ignited by an electrostatic discharge or other cause, it has ripped apart grain silos and has killed or wounded many workers over the years. When 54 people were killed during Christmas week 1977, grain handlers and the U.S. government finally decided to combat dust accumulation.10 Ten years, 59 deaths, and 317 serious injuries later, a compromise standard was agreed on that designates dust accumulation of one-eighth inch or more as dangerous and impermissible in silos in the United States. Nevertheless, on Monday, June 8, 1998, a series of explosions killed seven workers performing routine maintenance at one of the largest grain elevators in the world, demolishing one of the 246 concrete, 120-feet-high silos that stretch over a length of one-half mile in Haysville, Kansas. Discuss grain facility explosions as a case study of workplace safety and rule making: Which ideas concerning acceptable risk apply here? My…
identify dependent and independent variables in this statement "We asked first 600 and then 1000 customers to think of a brand/product/service they loved and they disliked. We then asked them to write a divorce letter to the disliked brand and a love letter to the brand they admired, and to score these two brands on a scale from 1 to 10. In this way, we had a benchmark for the perception of the loved and the disliked brands."