1. We have learned the 4P marketing analysis frameworks in the course of MKT 200. Could you define 4Ps for Hubble? That is, you need to define each component of the 4Ps individually.

2. On p.2, it mentions that Hubble uses Facebook ads. On p.22, you can also find the specific percentages for different categories of advertising spending. Thus, why is Facebook the preferred advertising platform for Hubble? Please list at least 2 reasons.

[Note: You might need to read through the case to find the answer for it, namely not just p.2.]

3. What reasons made Hubble consider TV commercials? At the same time, what reasons make them reluctant to use that? (hint: p.10)

4. On p.11, it mentions that they did run TV commercials. Based on the information provided in the case, did the TV commercials increase sales for Hubble?

5. On p.11, it mentions A/B testing TV advertising. On p.23, it presents a table showing 4 cells, namely 2(before vs. after ads) 2(treated vs. control markets).

Could you explain why they couldn't just run the ad on all the markets and see whether the sales differ by comparing before and after the ad? Namely, why did they need to consider the difference between treated vs. control markets?

[Note that, if they do not distinguish between treated and control markets, the study will be simpler as it will only have 2 cells (i.e., before vs. after ads) rather than 4 cells.]

6. The following questions focus on metrics.

1. On p.10, it mentions quite a few metrics that Hubble used in tracking advertising spending. What are they?
2. On p.10, it mentions that only CAC and LTV matter.Why is that?
3. On p.11 and 12, it mentions that they do not consider too much branding. Why is that?

7. On p.11, it mentions that it ran a TV ad. It spent 1 million dollars and reached 279 million customers. In Exhibit 12 (p.23), the table compares customer acquisition before and after the TV ad. The difference is 0.006 (0.01- 0.004) per 1000 customers.

Since they spent 1 million dollars, what is the CAC (Customer Acquisition Cost) in this TV advertising campaign? (Note: The following is the formula to calculate CAC.)

CAC =

Spending in the campaign The number of customers you acquire in this campaign