MKT 100 Lecture Notes - Lecture 12: Advertising Mail

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Daryl D' Souza

Document Summary

A marketer is evaluating two marketing campaigns. Campaign 1 would generate incremental revenues of ,000, at an incremental cost of ,000 and a contribution margin of 30%. Campaign 2 would generate incremental revenues of ,000, at an incremental cost of. Romicampaign1 = (incremental revenue * contribution margin cost) / cost. Romicampaign2 = (incremental revenue * contribution margin cost) / cost. Therefore the marketer should select campaign 1: a clothing retailer is considering investing in a newspaper advertising campaign to generate more sales. Incremental revenue = ,000 - ,000 = ,000. Marketing costs = ,000 + ,000 = ,000. Romi = (incremental revenue * contribution margin cost) / cost invest in a direct mail campaign targeting previous customers only a fraction of. = 25: an alternative option for the clothing retailer (in the previous question) is to the reach of the newspaper campaign .