How to compute to know if chintu should employ in house marketing or to simply koutsource this
Question:
How to compute to know if chintu should employ in house marketing or to simply koutsource this task?
Chintu wants to ensure that her new business has a strong focus on corporate social responsibility. As such, to honour the land that Chintu Chaiwala will exist on, Chintu wants to collaborate with a local Indigenous chef to make a special bannock snack to be included on the menu. Fifty percent of the proceeds of the bannock sales will be donated a Canadian Indigenous charity. Chintu wants this product to be very successful and an enticing reason for customers to visit the caf. Chintu wants to do marketing for this unique product offering, as well as the caf in general. Outsourcing marketing to a third party would cost about $10,000 a year. Outsourced marketing would result in weekly sales increasing by 5%. If Chintu were to handle marketing herself, the cost would be $5,000 and sales would increase by 2% per week. Provide Chintu with advice on what strategies she could employ for in-house marketing and recommend whether it is better to simply outsource this task.
Expert Answer:
To determine whether Chintu should employ inhouse marketing or outsource the task we need to compare the financial implications of both options Given ... View the full answer
