Marketing 5th Edition by Dhruv Grewal,Michael Levy

تمرين 4

RETURN ON MARKETING EXPENDITURES
Suppose Jay Oliver (marketing manager of Transit sneaker store) is considering two search engine marketing (SEM) options to reach out to new customers to market Transit. In particular, he is using Google Ad- Words, a search engine marketing tool offered by Google that allows firms to show up in searches based on the keywords potential customers use. Transit is targeting young adults aged 17 to 28. The sneaker market is about $500,000,000 sales annually, and the target market is about 35 percent of that. Their gross margins are 20 percent. Oliver estimates that Transit will capture a 2 percent market share of the target market with a $500,000 advertising and keyword budget (option 1) and a 3 percent market share with a $1,000,000 advertising and keyword budget (option 2). Which marketing plan produces the higher ROI for the year Please use the toolkit provided in your instructor's Connect course to assess the ROI of the two options.