Question 1 Needs Grading The MRK519 class provides uber type monthly driving services in the GTA. The class spends $200,000 on an advertising campaign to reach an audience 20,000 people. The average driver makes $450 per month. The plan is an auto-renewing subscription, but they have a churn rate of 7.5%. Variable costs are $250 per month. They spend $100/year on social media ads and $50 per year on banner advertising The discount rate is 2.5% a. What is the CLV of the customer (rounded to ZERO decimal places)? (2 marks) b. Why is CLV an important metric for marketers? (2 marks) Answer Question 2 Needs Grading An internet company wants to launch a specialty sports channel in 2020. The company conducted research that indicates they can achieve a trail rate of 10%. The company believes they can obtain an ACV of 70% and generate an awareness of 50%. The target population is 1,200,000 million people. a. What is the sports channel adjusted trial rate? (2 marks) b. What is the sports channel trial population? (2 marks) c. The company now expects there will be a repeat rate of 15% in the first year. How many repeat consumers will there be? (2 marks) Question 3 Needs Grading Pricing a. What is pricing strategy? (2 marks) b. Can you name 3 different pricing strategies? (3 marks) c. Why is price elasticity of demand such a valuable tool used in marketing to set a price? (2 marksBrand Management - final pre X Content arn.senecacollege.ca Not syncing b) What is the lowest price at which quantity demanded equals zero? Rounded to zero decimal places. (2 mark) c) What is the slope of the linear demand curve? Rounded to one decimal places (2 mark) d) using slope from part c, at a price of $10, the company sells 60 units. What is the elasticity? Rounded to two decimal places. (2 mark) Question 10 Needs Grading Mcdonald's sells their Extra-Large cup of Earl Grey tea for $1.89. Their cost is $1.13 per cup and they sell 100,000 cups a day. Research shows that the elasticity is -2.0. a) If they drop their price of the Tea by ten cents ($0.10), how many cups of earl Gray tea will sell? (2.5 marks) b) Mcdonald's will gain(lose) how many dollars of profit by dropping their price from $1.89 to $1.79 per cup (rounded to zero decimal places)? (2.5 marks) Question 11 Needs Grading You are the President of the TD Bank. In 2020, 400 customers purchased the new TD Bank Visa Seneca credit card for the first time due to a unique introductory offer. The bank had access to 20,000 potential Seneca students. a) What is the new account opening trial rate? (2.5 marks) b) TD bank knows that after receiving the benefit of the TD Bank Visa offer, it will have a 70% repeat rate of students keeping the Visa Card. As per part a above, TD sold 400 Visa credit cards in 2018. It expects to add 300 Visa Credit Cards in 2021. Calculate the expected penetration for the Visa credit card? (2.5 marks) Thursday, August 12, 2021 5:10:47 PM EDT O 28*C Mostly cloudy ~ 9 4) ENG 5:11 PM 2021-08-12 NQuestion 7 Needs Grading Videotron spent $5,400 on online advertising at a CPI of $0.03. That resulted in 12,300 clicks. 63% of those clicks converted into an order being placed in the cart. They typically have an abandonment rate of 70%. Calculate the Clickthrough Rate (CTR%), Cost per Thousand Impressions (CPM-$), Cost per Click (CPC-$), Cost per Order (CPO-$), and Conversion Rate(%)? (all rounded to TWO decimal places) (5 Marks) Question 8 Needs Grading List five marketing metrics that might appear on a Marketing Dashboard for Spotify? (4 points) Question 9 Needs Grading The North York Marketing Company sells 5 units at a price of $90 and three units at a price of $110. If demand is linear. a) What is the quantity that the customer willing to buy if the price of the product is zero? Rounded to zero decimal places. (2 mark) b) What is the lowest price at which quantity demanded equals zero? Rounded to zero decimal places. (2 mark) c) What is the slope of the linear demand curve? Rounded to one decimal places (2 mark) d) using slope from part c, at a price of $10, the company sells 60 units. What is the elasticity? Rounded to two decimal places. (2 mark)Needs Grading Automotive driving services are a highly competitive market where customers are not loyal, Every single one of them is at risk of leaving to another brand. The MKG519 class wants to spend $90,000 on a bus shelter ad that will reach 200,000 people who are 18+ and living near the city. The margin of the driving service is $100/month and the MKG519 class believe that 2% will take advantage of this offer. CLV of the acquired customer is $200. Aside from the brand awareness benefits, the class wants to know if the advertising is worth it from an economic perspective. a. What is the average acquisition Cost? (2 marks) b. What is the prospect lifetime value (PLV)? Please round to TWO decimal places. (2 marks) c. Is the proposed acquisition spending attractive (Y/N)? Why? (2 mark) stion 5 Needs Grading The MRK519 class was evaluating 3 different plans as shown in the table below but found that some information was missing. Fill in the blanks for the class. (6 marks) Plan Reach Average Frequency OTS Advertising Cost CPM A [A] 5 2,250,000 [D] $2.00 B 281,250 [B] 2,250,000 [E] $1.20 C 562,500 4 [C] $9,455 [F] stion 6 Needs Grading The MRK519 class is thinking about spending $90,000 on a bus shelter ad that will reach 200,000 people who are 18+ and living near the city. In particular, they want to know what method(s)/metrics they can use to assess the effect of the bus shelter campaign. They don't want to waste their money on unnecessary impressions. As a consultant, what would you advise the class