How many promotions should be sent to each group

Reference no: EM13236117

EnglishMotors,Ltd.(EML),developed a new all-wheel-drive sports utility vehicle. As part of the marketing campaign, EML produced a video tape sales presentation to send to both owners of current EMLfour-wheel-drive vehicles as well as to owners off our-wheel-drive sports utility vehicles offered by competitors; EML refers to these two target markets as the current customer market and the new customer market. Individuals who receive the new promotion video will also receive a coupon for a test drive of the new EML model for one weekend. A key factor in the success of the new promotion is the response rate, the percentage of individuals who receive the new promotion and test drive the new model. EML estimates that the response rate for the current customer market is 25% and the response rate for the new customer market is 20%. For the customers who test drive the new model the sales rate is the percentage of individuals that make a purchase. Marketing research studies indicate that the sales rate is 12% for the current customer market and 20% for the
new customer market. The cost for each promotion, excluding the test drive costs, is
$4 for each promotion sent to the current customer market and $6 for each promotion sent to the new customer market. Management also specified that a minimum of 30,000 current customers should test drive the new model and a minimum of 10,000 new customers should test drive the new model. In addition, the number of current customers who test drive the, new vehicle must be at least twice the number of new customers who test drive the new vehicle.If the marketing budget,excluding test drive costs, is $1.2 million how many promotions should be sent to each group of customers in order to maximize total sales?

Reference no: EM13236117

Questions Cloud

Calculate the value of the second charge : The electric potential at a position located a distance of 18.6 mm from a positive point charge of 7.50×10-9C and 14.8 mm from a second point charge is 1.10 kV

Confucianism-daoism and legalism : It is based on Chapter 4, which you are required to read and look at the PowerPoint, but you will not be tested on. The assignment is a two pages, double spaced, 12 font analysis of one of China's early philosophies/belief systems. You may choose any..

Explain the buffer successful prevents large changes in ph : If the 0.020 moles of HCl were added to 250 ml of de-ionized water instead of the buffer, what would be the pH be? Does this tell you if the buffer successful prevents large changes in pH

Describe the environmental forces that affect the company : Describe the environmental forces that affect the company's ability to serve its customers.

How many promotions should be sent to each group : As part of the marketing campaign, EML produced a video tape sales presentation to send to both owners of current EMLfour-wheel-drive vehicles as well as to owners off our-wheel-drive sports utility vehicles offered by competitors; EML refers to t..

What is her percentage increase in productivity : She thinks that by redesigning the ornaments and switching from use of a wood glue to a hot glue gun, she can increase her total production to 20 ornaments per day. What is her percentage increase in productivity?

Calculate the labor productivity of the line : Riverside Metal Works produces cast bronze valves on a five-person assembly line. On a recent day, 180 valves were produced during an 8-hour shift. Calculate the labor productivity of the line.

The ceo of a small chain of women''s clothing stores : Compose a paper discussing your course of action and how the six steps helped you reach your decision. Explain why you feel the decision you made is the correct one for your company.

What is that maximum output number : What station sets the maxium possible output from this system? What is that maximum output number?

User Account

All Pages