MKT 100 : Metrics 8

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Paul Finlayson

Document Summary

Worksheet: metric 8 return on marketing investment (romi: a marketer is evaluating two marketing campaigns. It is estimated that campaign 1 would generate incremental revenues of ,000, at an incremental cost of ,000 and a contribution margin of 30%. ,000, at an incremental cost of ,000 and a contribution margin of 50%. =50000*. 50-20000=25: a clothing retailer is considering investing in a newspaper advertising campaign to generate more sales. The campaign is expected to cost ,000 in creative agency fees and. ,000 in circulation costs, while increasing revenues from ,000 to ,000. 60000*(. 25) 3000/12000 = 25: an alternative option for the clothing retailer (in the previous question) is to invest in a direct mail campaign targeting previous customers only a fraction of the reach of the newspaper campaign . The cost of the direct mail campaign would be ,000, but would only result in increasing revenues to ,000.