Mark owns GloboGym in Boston and is considering bidding for keywords on Google Search. Mark has a landing page on his gym's website that offers a...

Mark owns GloboGym in Boston and is considering bidding for keywords on Google Search. 

·        Mark has a landing page on his gym's website that offers a free trial for two weeks. Arrivals convert at 5% into email sign-ups (valid leads)

·        20% of the leads convert after a free trial

·        Mark charges $100 a month.

·        The average customer stays for 10 months.

·        Mark's costs are $50/month.

·        Assume the free trial costs $25! 

Assignment - Answer the following five questions

1)     Analyze Mark's business using a funnel framework.

2)     What can Mark bid on a per click basis given his current profitability?

3)     Go through the funnel - what could Mark do at each step to improve performance?

4)     Mark is considering marketing analyst who sets up MailChimp. Suppose he gets 10% additional of the sign-ups. How does this impact what he can bid per click?

5)     Mark's marketing analyst makes several marketing partnerships with other local companies including a healthy restaurant chain, and a fitness apparel company. These partnerships generate an average of $1 more email sign-up. How does this impact what he can bid per click?