Marketing Analytics: Selecting A Communications Channel Instructions: Read the problem below and refer to the spreadsheet provided. The spreadsheet values highlighted in yellow can be manipulated in order to determine possible outcomes and answer the questions. You must answer the follow-up questions (0-e) correctly to receive full credit Problem: Helen Troy, owner of three Sound Haus stereo equipment stores, is deciding what message channel (advertising medium) to use to promote her newest store. Her current promotion blend includes direct- mail ads that are effective for reaching her current customers She also has knowledgeable salespeople who work well with consumers once they're in the store. However, a key objective in opening a new store is to attract new customers. Her best prospects are professionals in the 25-44 age range with incomes over $38,000 a year. But only some of the people in this group are audiophiles who want the top-of-the-line brands she carries, Troy has decided to use local advertising to reach new customers Troy narrowed her choice to two advertising media: Pandora, a music streaming service that offers localized advertising services, and a blweekly magazine that focuses on entertainment in her city. Many of the magazine's readers are out of town visitors interested in concerts, plays, and restaurants. They usually buy stereo equipment at home. But the magazine's audience research shows that many local professionals do subscribe to the magazinel Troy doesn't think that the objective can be achieved with a single ad. However , she believes that ads in six issues will generate good local awareness with her target market. In addition, the magazine's color format will let her present the prestige image she wants to convey in an ad. She thinks that will help convert aware prospects to buyers Specialists at a local advertising agency will prepare a high impact ad for $2,000, and then Troy will pay for the magazine space Pandoro can target an audience similar to Troy's own target market She knows repeated ads will be needed to be sure that most of her target audience is exposed to her ads. Troy thinks it will take daily ads for several months to create adequate awareness among her target market Pandora will provide an announcer and prepare a recording of Troy's ad for a one-time fee of $200. All she has to do is tell them what the message content for the ad should say, 1 estatytus ar EPUSEU aus. Hoy II ne Udny aus II Seveld HD w wieder aurule wa ESS GHONY her target market. Pandora will provide an announcer and prepare a recording of Troy's ad for a one-time fee of $200. All she has to do is tell them what the message content for the ad should say Both Pandora and the magazine gave Troy reports summarizing recent audience research. She decides that comparing the two media in a spreadsheet will help her make a better decision Spreadsheet The spreadsheet values outlined in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns E and F. Start by entering the initial values into columns B and C. Then review the questions below and adjust the values in columns B and C to determine the correct answers. C D E Initial Initial 2 Pandora Magazine Pandora Magazine 3 Total Audience Size (People) 100,000 200,000 Audience % in Income/Age Group 60% % of Audience Local Residents 95% 65% Number of "Prospects in Audience 56,500 78,000 Preparation Cost for Ad 200.00 $ 2,000.00 Cost of One Ad'insertion 150.00 $ 1,800.00 Objective of Prospects Aware 60% 10 Insertions Needed to achieve Objective 60 Total Cost for All Ads $ 0.00 $ 0.00 $ 9,200.00 $ 12.800.00 12 Number of Aware" Prospects 0 53.200 62 400 13 Cost per Aware Prospect NAN $ 0.173 0205 14 % of Aware Who W Buy 200% 1.50% 15 Likely Number of Buyers 0 1,064 16 Cost per Buyer NAN 8.65 13.66 4 70% 5 6 0 0 0 7 $ 8 $ 9 80% 6 11 0 NaN 0 936 NON IS Marketing Analytics: Selecting A Communications Channel Instructions: Read the problem below and refer to the spreadsheet provided. The spreadsheet values highlighted in yellow can be manipulated in order to determine possible outcomes and answer the questions. You must answer the follow-up questions (0-e) correctly to receive full credit Problem: Helen Troy, owner of three Sound Haus stereo equipment stores, is deciding what message channel (advertising medium) to use to promote her newest store. Her current promotion blend includes direct- mail ads that are effective for reaching her current customers She also has knowledgeable salespeople who work well with consumers once they're in the store. However, a key objective in opening a new store is to attract new customers. Her best prospects are professionals in the 25-44 age range with incomes over $38,000 a year. But only some of the people in this group are audiophiles who want the top-of-the-line brands she carries, Troy has decided to use local advertising to reach new customers Troy narrowed her choice to two advertising media: Pandora, a music streaming service that offers localized advertising services, and a blweekly magazine that focuses on entertainment in her city. Many of the magazine's readers are out of town visitors interested in concerts, plays, and restaurants. They usually buy stereo equipment at home. But the magazine's audience research shows that many local professionals do subscribe to the magazinel Troy doesn't think that the objective can be achieved with a single ad. However , she believes that ads in six issues will generate good local awareness with her target market. In addition, the magazine's color format will let her present the prestige image she wants to convey in an ad. She thinks that will help convert aware prospects to buyers Specialists at a local advertising agency will prepare a high impact ad for $2,000, and then Troy will pay for the magazine space Pandoro can target an audience similar to Troy's own target market She knows repeated ads will be needed to be sure that most of her target audience is exposed to her ads. Troy thinks it will take daily ads for several months to create adequate awareness among her target market Pandora will provide an announcer and prepare a recording of Troy's ad for a one-time fee of $200. All she has to do is tell them what the message content for the ad should say, 1 estatytus ar EPUSEU aus. Hoy II ne Udny aus II Seveld HD w wieder aurule wa ESS GHONY her target market. Pandora will provide an announcer and prepare a recording of Troy's ad for a one-time fee of $200. All she has to do is tell them what the message content for the ad should say Both Pandora and the magazine gave Troy reports summarizing recent audience research. She decides that comparing the two media in a spreadsheet will help her make a better decision Spreadsheet The spreadsheet values outlined in yellow can be changed in order to determine possible outcomes. You can find the initial values in the corresponding blue cells in columns E and F. Start by entering the initial values into columns B and C. Then review the questions below and adjust the values in columns B and C to determine the correct answers. C D E Initial Initial 2 Pandora Magazine Pandora Magazine 3 Total Audience Size (People) 100,000 200,000 Audience % in Income/Age Group 60% % of Audience Local Residents 95% 65% Number of "Prospects in Audience 56,500 78,000 Preparation Cost for Ad 200.00 $ 2,000.00 Cost of One Ad'insertion 150.00 $ 1,800.00 Objective of Prospects Aware 60% 10 Insertions Needed to achieve Objective 60 Total Cost for All Ads $ 0.00 $ 0.00 $ 9,200.00 $ 12.800.00 12 Number of Aware" Prospects 0 53.200 62 400 13 Cost per Aware Prospect NAN $ 0.173 0205 14 % of Aware Who W Buy 200% 1.50% 15 Likely Number of Buyers 0 1,064 16 Cost per Buyer NAN 8.65 13.66 4 70% 5 6 0 0 0 7 $ 8 $ 9 80% 6 11 0 NaN 0 936 NON IS