Designing Marketing Experiments

Q1.

Mark Weinberg is quite correct in asking if the budget of $500,000 for an advertising campaign could be streamlined, what systems are in place that would prove beyond doubt that a cheaper campaign would have less impact on sales?

Q2.

As stated in the case that not launching the campaign does not affect sales then how much increase in sales can be projected if a budgeted campaign of half a million dollars is given the go ahead and would it be cost effective?

Q3.

If the test group of 1000 people are in full knowledge of the product design changes would this give a true account of the alterations in buying behavior or would it merely suggest that because of the trial behaviors would revert back to the original state when it was completed?

Q4.

When considering the description of figure 2 and the cost of e-mails against the uplift in sales can it truly be said that such a test of a pool of 1000 customers is going to make such an impact on overall sales?

Q5. (True/False)

The inception of web advertising proves to be a much more cost effective than that of television ads, campaigns can be altered with minimal cost and can be directly targeted to existing customers by the use of emails, and with the use of a "read" receipt the data can be collected more precisely.

Q6.

Advertising is such a vital tool in the promotion of any product, especially in such a market as food sales, that constant updating of campaigns are required. So easily can one product have sales reduced by a more intensive campaign by a rival?

Q7.

When producing an advertising campaign is the duration of the campaign an exacting factor, as in, will the length of the run be exponentially more beneficial is extra sales or will the growth plateau before the end, thus increasing the overall cost without additional sales? 

Business Case #2

Q8.

In a normal situation would a reduction in the cost of the unit be more effective in additional sales, for instance by $0.10, than the cost of running an expensive ad campaign?

Q9. (True/False)

It has been shown, table 1 that a reduced number of sales due to additional price per unit makes no difference to overall profit, in fact it reduces in comparison to larger sales by the lower priced item. Therefore the sensible approach would be to create a recommended retail price across all cities.

Q10.

There is to be a campaign which promotes a new design on the cereal packaging which projects an increase in sales, however would it not be more effective if this was coupled with a slightly improved product?