While the direct mail coupon would result in a 55 percent increase in customers (150 customers per month). The goal of this activity is to understand the profit equation and the refationship betwoen sales, revenue, and costs. Keep in mind that Profit = Total Revenue - Tosal Costs. Total Revenue (T) = Price (P) Quantity Sold (Q) Aever to the formulas above and the sprebatshect below to help aviswer the questions that followi The spreadsheet fields highlighted in columas E to G. Start by enteving the inital values into calimns B to D. Then roview the questions below and adjust the values in columens B to D ro determine the correct answers. 1 Based on the data provided in the marketing dashboavd, what type of promotional marketing eflort. if ary. should Kai invest in to increase the number of canine cussomers and profit? 2. Ka feels strongy that putting a coupon in the maket will diute the perceived value of his semices, so he realy wants to pursue the magazine advertising opbon. Kal can change the size of the ad which will affect the cost and the eflectwoness of the ad. Which combination of advertsing cost and respomsiveness (number of new custoeners) maximises his proter? 3. Another option that Ka al could consider is changhg the value of the coupen. Not surptisingly, the laryer the coupon, the more customers Kal can expect. A $2 coupon gets him 120 clients per month, a $5 coupon gets him 135 clients per month, a $10 coupen gets him 150 clients per month. a $15 coupon gets him 175 clients per month, and a $20 coupon gets him 200 clients per month. Which customerlcoupon combinatian maximzes Kai's profits? 4. To nowimize his profit, Kai should adopt which of the following strategies? 5. Instead of utizing a promotional marketing tactic, Kai has decided to change the price of his product in an effort to increase his customer base and maximize his proth. The lower the price, the more customers Kai can expect to attract Which customer/price combirstion will maximize Kairs prote? Marketing Analytics: The Profit Equation Profte - Total Revenue - Total Costs, Total Revenue (TR) - Price (P) x Quantity Sold (Q) While the direct mail coupon would result in a 55 percent increase in customers (150 customers per month). The goal of this activity is to understand the profit equation and the refationship betwoen sales, revenue, and costs. Keep in mind that Profit = Total Revenue - Tosal Costs. Total Revenue (T) = Price (P) Quantity Sold (Q) Aever to the formulas above and the sprebatshect below to help aviswer the questions that followi The spreadsheet fields highlighted in columas E to G. Start by enteving the inital values into calimns B to D. Then roview the questions below and adjust the values in columens B to D ro determine the correct answers. 1 Based on the data provided in the marketing dashboavd, what type of promotional marketing eflort. if ary. should Kai invest in to increase the number of canine cussomers and profit? 2. Ka feels strongy that putting a coupon in the maket will diute the perceived value of his semices, so he realy wants to pursue the magazine advertising opbon. Kal can change the size of the ad which will affect the cost and the eflectwoness of the ad. Which combination of advertsing cost and respomsiveness (number of new custoeners) maximises his proter? 3. Another option that Ka al could consider is changhg the value of the coupen. Not surptisingly, the laryer the coupon, the more customers Kal can expect. A $2 coupon gets him 120 clients per month, a $5 coupon gets him 135 clients per month, a $10 coupen gets him 150 clients per month. a $15 coupon gets him 175 clients per month, and a $20 coupon gets him 200 clients per month. Which customerlcoupon combinatian maximzes Kai's profits? 4. To nowimize his profit, Kai should adopt which of the following strategies? 5. Instead of utizing a promotional marketing tactic, Kai has decided to change the price of his product in an effort to increase his customer base and maximize his proth. The lower the price, the more customers Kai can expect to attract Which customer/price combirstion will maximize Kairs prote? Marketing Analytics: The Profit Equation Profte - Total Revenue - Total Costs, Total Revenue (TR) - Price (P) x Quantity Sold (Q)