can you please explain me the below questions Data Driven Marketing MK 8720 Assignment 1 Economics of
Question:
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
Research Methods For Business Students
ISBN: 9781292208787
8th Edition
Authors: Mark Saunders, Philip Lewis, Adrian Thornhill