Marketing objectives Specific campaign goals Past results Industry averages Examples of metrics: Behaviour based Number of website visitors, length of stay, depth of navigation, number of clicks Number of calls received Number of complaints Change in customer behaviour/buying patterns etc. Cost based Conversion rate (proportion of customers who perform a specific action) Cost per new client acquisition/cost per sale ROI etc. Based on brand variables Customer satisfaction level of brand/product Brand awareness/recognition levels Customer Customers’ impression loyalty levels etc. Hybrid (combination of above elements) 6.1.2 Advertising Costs Determine advertising cost-sales ratio per product line (total advertising cost for product line divided by sales in dollars generated by product line or sales person or territory x 100) Determine product advertising cost-total adverting cost ratio (product advertising cost divided by total advertising cost x 100) By filling Table 6 below, you should be able to: Analyse overall advertising costs in relation to sales and profits Total Product A Prod B Prod C Prod D Prod E (OR Territoty 1 OR Market X OR Departement 150,000 30,000 Net Sales Advertising Expenses Fill in information for each product OR territory Print 9,000 1,500 OR Radio 1,000 500 market segment OR department in order to draw comparisons between each category (columns) and 5,000 2,000 TV between each advertising medium. Outdoors 4,000 600 2,400 1,200 Events PR 2,000 500 4,500 500 Online $27,900 $6,800 Total Expenses Advertising cost as a % of sales 19% 23% $37,000 $10,500 Net Profit Advertising cost as a % of profit 75% 65% Number of New Clients 2,000 150 Advertising cost per acquisition (ad expenses divided by number of new clients)
Marketing objectives Specific campaign goals Past results Industry averages Examples of metrics: Behaviour based Number of website visitors, length of stay, depth of navigation, number of clicks Number of calls received Number of complaints Change in customer behaviour/buying patterns etc. Cost based Conversion rate (proportion of customers who perform a specific action) Cost per new client acquisition/cost per sale ROI etc. Based on brand variables Customer satisfaction level Customers’ impression of brand/product Brand awareness/recognition levels Customer loyalty levels etc. Hybrid (combination of above elements) 6.1.2 Advertising Costs Determine advertising cost-sales ratio per product line (total advertising cost for product line divided by sales in dollars generated by product line or sales person or territory x 100) Determine product advertising cost-total adverting cost ratio (product advertising cost divided by total advertising cost x 100) By filling Table 6 below, you should be able to: Analyse overall advertising costs in relation to sales and profits Total Product A Prod B Prod C Prod D Prod E (OR Territoty 1 OR Market X OR Departement Net Sales 150,000 30,000 Advertising Expenses Print 9,000 1,500 Fill in information for each product OR territory OR market segment OR department in order to draw comparisons between each category (columns) and between each advertising medium. Radio 1,000 500 TV 5,000 2,000 Outdoors 4,000 600 Events 2,400 1,200 PR 2,000 500 Online 4,500 500 Total Expenses $27,900 $6,800 Advertising cost as a % of sales 19% 23% Net Profit $37,000 $10,500 Advertising cost as a % of profit 75% 65% Number of New Clients 2,000 150 Advertising cost per acquisition (ad expenses divided by number of new clients)