can you please explain me the below questions

Data Driven Marketing

MK 8720

Assignment 1

Economics of Purchasing External Data

QUESTION 1

P&G launched a new tissue in 2020 named "Puffs COVID Protect". Since many stores were closed, the company decided to mail a sample to acquire new customers. Based on the information below, should P&G purchase an external database to mail to, or should they simply send samples to a free database from one of their sister brands? Please show your work.

Estimated market size: 1 million customers

• Response rate with external data: 5%

• Response rate with free database: 2.5%
• Cost of printing and mailing one sample: $3
• Cost of purchasing an external database: $160 per thousand records
• Number of flyers to mail: 500,000

QUESTION 2

Samsung is launching their new line of smartphones and has set aside $50,000 for digital ads. As marketing manager, you must choose whether to place ads programmatically (Facebook, Google, and YouTube) or work with AT&T to place ads within their retail media network which includes past purchase data.

Based on the estimated response of each, which media (programmatic vs AT&T) do you recommend? Please show your work.

Estimated market size: 10,000,000 customers

• Budget: $50,000
• Programmatic Estimated Response Rate or Clickthrough Rate: 0.19%
• Programmatic Cost Per Thousand Impressions (CPM): $6.00
• AT&T Estimated Response Rate or Clickthrough Rate: 0.45%
• AT&T Cost Per Thousand Impressions (CPM): $14.00

Reminders

• CPM = Cost per Thousand
• Budget or Cost = Impressions (CPM 1,000)
• Impressions = Budget or Cost (CPM 1,000)
• Clicks = Impressions X Clickthrough Rate