Question

ROMI= (Increase in Sales – Marketing Campaign Cost) / Marketing Campaign Cost The figures from Veronica show that revenue before each campaign was $12,000. The cost of each campaign and subsequent revenues are as follows: Television Campaign cost: $3,000 Revenue after campaign: $16,000 Social Media (Facebook, Twitter, YouTube, and LinkedIn) Campaign cost: $12,000 Revenue after campaign: $30,000 Website Campaign cost: $5,000 Revenue after campaign: $18,000 ABCD 1 2 3 4 5 6 7 8 Television Social Media Website Revenues Before Campaign $12,000 $12,000 $12,000 Revenues After Campaign $16,000 $30,000 $18,000 Increase in Sales $4,000 $18,000 $6,000 Campaign Cost $3,000 $12,000 $5,000 ROMI 33 50 20 Normal Sales Growth Rate (%) 1 Net ROMI 32 50 20 3. Veronica also informs you that her resort has a normal growth of 6% without the influence of the marketing campaign. You will need to adjust your figures by deducting the 6% from your ROMI to obtain the net ROMI using the formula below: Net ROMI = [(Increase in Sales – Marketing Cost) / Marketing Cost] – Normal Sales Growth Rate What is the net ROMI for each campaign? 27 (TV); 40 (Social Media); 10 (Web) 29 (TV); 46 (Social Media); 12 (Web) 27 (TV); 44 (Social Media); 14 (Web) 31 (TV); 44 (Social Media); 40 (Web)

Answer 1

27 (TV); 44 (Social Media); 14 (Web) is the correct answer