Assume you are managing a small business. You have sales of $1,000,000 and a marketing budget of
Question:
Assume you are managing a small business. You have sales of $1,000,000 and a marketing budget of $100,000. You have 100 existing customers. The reasoning for your answers below is important.
1) How much of the $100,000 marketing budget do you spend on your existing customers? Why?
2) How much of the $100,000 marketing budget do you spend on going after new customers? Why?
3) How do you decide on the division of this budget?
4) Describe 3 marketing programs that you would implement to appeal to your existing customers:
5) Describe 3 marketing programs that you would implement to appeal to your new customers:
6) How does relationship marketing fit into your answers above?
7) How will your answers above increase the chances of your business being more profitable?
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey