StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Marketing Budget Calculations - Essay Example

Cite this document
Summary
The essay "Marketing Budget Calculations" focuse on the critical analysis of the major issues in marketing budget calculations. This is a marketing Budget for ‘Sweet Sister Hood Club and Spa’. The details given below on the spreadsheet pertain to the various marketing expenses…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
Marketing Budget Calculations
Read Text Preview

Extract of sample "Marketing Budget Calculations"

The above spreadsheet is the explanation of the actual workings, response rate, CPM, Prospects generated, and conversion rates. The spa is expected to have 842 conversions a month from these promotions and an average sales per head of $80 will result in sales of $67360 per month. Response rates have been taken at the following percentages Newspaper ads at 2%, Magazine -1 % and Bill Boards - at .5%, in the Print media.

Non Print:
Radio – 2%
Television – 3%
Internet – 2%.

As the spa is using the pull strategy to market its services, hence it currently will not employ a telesales team to actively push sales over the phone. Besides, the spa does not possess a large calling base. However, with an existing base of 250+ names and numbers, it decides to send direct mail and a 5% conversion on this generates 12 prospects.

Discounts and samples: Discounts and samples given to walk-ins and employees in corporate houses generate a 30% conversion.

Sales Force:  The spa operates only with a minimum of 2 salesmen who make 7 calls a day, 5 days a week with 20 % prospects and a 35% conversion rate on the prospect. A senior member will accompany them to a corporate house once a week and the salesmen will take the lead from there to generate further business.

Events and Sponsors: This will generate an additional 50 % conversion rate considering the celebrities who would visit the spa as this lures people to be present in the spa during their visit to the spa.

CPM and Conversions: The CPM for Television is $6 per 1000 viewers and this would result in $60 for a 30-second commercial aired once. Airing this 4 times a day, 30 days a month costs $7200. The CPM on the internet for Facebook and MySpace is $.5 for 1000 views a day, $50 for 1,00,000 views 30 days a month is $1500. The conversions for all print and non-print prospects have been kept at a conservative 15%. The budget mentioned is both viable and comprehensive and even a 15% slip on the expected rate will leave the spa with a healthy Net Profit Margin.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Marketing Budget Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved de https://studentshare.org/miscellaneous/1553567-marketing-budget
(Marketing Budget Essay Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/miscellaneous/1553567-marketing-budget.
“Marketing Budget Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1553567-marketing-budget.
  • Cited: 0 times

CHECK THESE SAMPLES OF Marketing Budget Calculations

Financial Reporting Disclosures in the Australian Corporate Sector

The fair values of cash-generating units are usually determined through economic value calculations.... These economic value calculations are done based on future cash flows that are discounted through pre-tax discount.... 752) Calculation of Discount Rates and Growth Rates Cash flows calculations are often subjected to varying discounting rates and growth rates that may have been calculated on the basis of unrealistic assumptions.... Recommendations After a thorough analysis of the Coca Cola Amatil LTD means of disclosing their financial reports, there is non-compliance to the calculations of discount rates and growth rates....
8 Pages (2000 words) Essay

Management accounting

The resource allocation needs to be reviewed by the management as well so that their analysis and decision may also impact the budget calculations of the business in a positive way.... Variance of calculations depicts a broad picture of how much the organisation has deviated from or remained within their calculations of budget for the firm.... It is even apparent from the calculations of the Net Income that if the company produces and sells the budgeted units then it will be able to earn higher amount of profit i....
7 Pages (1750 words) Assignment

Saving the Manatees

Discuss the results After constructing the spreadsheet and doing calculations, the following results were arrived at.... The value presented on the objective cell is the expected net budget value of the project.... % of the total budget would be well utilized by the advertising mediums proposed by Tom.... In addition, improving the number of evening TV ads brings the proposed budget closer to the available amount increasing the effectiveness of the advertising mediums....
4 Pages (1000 words) Case Study

Management Accounting - Total Quality Management

This means that the marketing and sales targets reach the breakeven when the total sales revenue is 1,40,000 GBP.... The costs, expenses, budgets and profits of the future activities of any company can be dealt with the managerial accounting.... This can be made possible and effective when the processes and activities are decentralized regarding decision making in the company....
12 Pages (3000 words) Essay

Marketing Budget Summary

marketing budget Summary Panera's marketing program consists of various strategies which have been listed below with the amount of budget allocated to each of them for 2007.... Ideally the marketing budget should be based on the proportion of the product category wise sales.... Having such a vast operation it must divide its marketing budget area wise as well.... hus marketing budget of 45 million can be used as followsMarketing on national level 32 millionMarketing on local level 13 millionThe 13 million can further divided between states using the following data retrieved from Annual Report 2005....
2 Pages (500 words) Essay

Financial Reporting Disclosures in the Australian Corporate Sector

The paper "Financial Reporting Disclosures in the Australian Corporate Sector" states that after a thorough analysis of Coca-Cola Amatil LTD's means of disclosing its financial reports, there is non-compliance with the calculations of discount rates and growth rates.... The fair values of cash-generating units are usually determined through economic value calculations.... These economic value calculations are done based on future cash flows that are discounted through pre-tax discount....
8 Pages (2000 words) Essay

Why Managerial Accounting Matters in the Career

This is considering that some of the Management accounting data are numeric and requires some calculations.... An understanding of the calculations is of importance to the members.... he following formula can be used for carrying out calculations. ... The budget making process is useful in enabling the managers to consider specific objectives in relation to the funds allocated for different activities.... This method of preparing the budget starts from a clean slate at the start of every budgetary period....
15 Pages (3750 words) Essay

Financial Planning and Budgeting - Lighthouse Ltd

This paper creates a budgeting plan for Lighthouse, starting from a sales forecast, production and budgeted inventory, considers production costs, administrative and marketing budget.... The financial models can help in answering other questions that manual calculations do ignore and help in making the appropriate decisions for forecasting.... It is critical to that a good estimate is created since it will be applied for several other calculations and estimates in the other budgets....
16 Pages (4000 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us