I want help in this question under the subject marketing -CLV and bass model using excel

A company for digital music products wants to plan the distribution of its new product that streams music in a widget on the phone The cellphone. In this product the music adapts the songs to the mood of the consumer and therefore the company expects that it can be achieved Market share in a market that is already relatively saturated. The company is interested in running a large online campaign while launching the product to the market.
The company has two options for the campaign: 1) a medium-cost campaign and 2) a more expensive campaign.
In order to decide which campaign will generate greater profits - you are asked to use a sophisticated adoption model to Give forecasts for company revenue. For that matter, you must use a bass model that is integrated with the basic model for measurement Value of customer life.
The company is interested in a time horizon of 4 years. Each consumer pays 15 $ each month for the streaming service. cost Customer maintenance, per customer, is $5. The monthly interest rate is 2% (yes, a large monthly interest rate) and the market size The estimated potential is100,000 customers. According to previous studies, you have found that the estimated imitation coefficient is 0.3 and the innovation factor is a function of the campaign you choose.
An advertising agency you work with claims that the cost of Campaign A is relatively cheap, ie 500000$, but will lead ) According to the estimate (for an innovation coefficient of 0.03 only. On the other hand, the Ministry of Advertising claims that if a larger amount is invested In the campaign (800000$) the coefficient of innovation will be doubled and even increased to 0.07 The costs of the campaign, DA, include the costs Customer acquisition.

A. Which campaign should a company choose if it wants to maximize its revenue compared to the customer life system Expenditure on the campaign? Explain why.

B. An executive in the advertising agency who has been exposed to your models claims that your modeling method is unnecessary because That the customer potential is constant and therefore in the long run the revenue for the company will be the same revenue. is he right? Explain. 

C. If given that the basic product is a music streaming service via a widget on the cell phone - give three Examples of product improvement or feature. Give two examples of improvements that will affect the imitation coefficient and an example.

For an improvement that will affect the innovation coefficient. Explain.

Answer rating: 100% (QA)

A The campaign which the company should choose is the mediumcost campaign because the cost of acquir... View the full answer