Imagine you are the marketing manager who is planning to run a coupon campaign for your...

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Imagine you are the marketing manager who is planning to run a coupon campaign for your product. Your staff prepared the following table of information for you to review. Using this information, determine the percentage of incremental sales to buyers that would not have purchased in the absence of the coupon that would be needed to break even on the promotion. Note: Enter your answer as a number without the % sign. For example, 3.2% would be 3.2 (round to one decimal place, if needed). Coupon Face Value (discount offered by the coupon) $0.40 Processing Fee (back-end processing costs for each coupon) $0.07 Regular Product Price (price of the product before discounting) $2.40 Margin 30% Coupons Distributed 30,000,000 Cost/1000 Coupons Distributed $10 Distribution Costs $300,000 Redemption Rate 7% Coupons Redeemed 2,100,000 Redemption Costs $987,000 Total Campaign Costs $1,287,000 Cost per Coupon Redeemed $0.61 Total Campaign Profit $1,512,000 ROI 17.5% Imagine you are the marketing manager who is planning to run a coupon campaign for your product. Your staff prepared the following table of information for you to review. Using this information, determine the percentage of incremental sales to buyers that would not have purchased in the absence of the coupon that would be needed to break even on the promotion. Note: Enter your answer as a number without the % sign. For example, 3.2% would be 3.2 (round to one decimal place, if needed). Coupon Face Value (discount offered by the coupon) $0.40 Processing Fee (back-end processing costs for each coupon) $0.07 Regular Product Price (price of the product before discounting) $2.40 Margin 30% Coupons Distributed 30,000,000 Cost/1000 Coupons Distributed $10 Distribution Costs $300,000 Redemption Rate 7% Coupons Redeemed 2,100,000 Redemption Costs $987,000 Total Campaign Costs $1,287,000 Cost per Coupon Redeemed $0.61 Total Campaign Profit $1,512,000 ROI 17.5%

Answer rating: 100% (QA)

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