Standard Website Metrics

The table below contains the standard top-level website metrics that every marketer needs to be familiar with. Your task is to assess the relative performance of these websites.

 

ACTIVITY/TASK

Site A Site B Site C
Visitors 10,000 100,000 200,000
Visits 40,000 120,000 400,000
Pageviews 200,000 150,000 2,000,000
CPC budget $5,000 $40,000 $100,000
Bounce rate 20% 80% 50%

 

QUESTIONS

  1. What
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A Real Increase in Profitability?

The table below highlights a firm that has dramatically increased its profitability in a few years. But they have focused on a short-term, not long-term, basis and you need to determine what impact this may have.

 

ACTIVITY/TASK

Year 0 Year 1 Year 2 Year 3
Sales 20m 19.50m 18.6m 16m
Costs 5m 4.75m 4.6m 4m
Operating profit 15m 14.75m
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Allocating Fixed Costs

Allocating fixed costs to products, in order to more fully assess product profitability, can be determined in different ways with different outcomes. In the following example, the firm was allocated its fixed costs equally each of its products – what impact does this have?

 

ACTIVITY/TASK

Product  A Product  B Product  C Product D TOTAL
Gross profit $4m $1m $2m
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Reviewing Product Launch Results


In this activity, you need to review the recent new product launch results across different firms. How well did their respective launches go? Can you get a sense of their relative strengths/weaknesses from these results?

 

ACTIVITY/TASK

Firm A

Firm B

Firm C

Firm D
Target market size

     1m

     1m

     1m

  1m
Trial %

                      20

                   40                      20                    10
Repeat %
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Using Porter’s Five-forces Model

Use Porter’s Five-forces model to help analyze the book publishing industry, simply based on the hypothetical information and data presented below.

 

ACTIVITY/TASK

The book publishing industry in Australia

  •  20% of books are sold via independent retailers that tend to specialize in a particular genre or prefer unusual (not mainstream) books
  • 70% of books are sold via large retail chains
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Salespeople Incentive Schemes

There are a variety of incentive schemes that can be implemented in order to help motivate and reward salespeople. In this exercise you need to first calculate the total salary/incentive paid in each of the following payment structures. Then you need to determine which structure is the best approach.

 

ACTIVITY/TASK

For all the incentive schemes below: George, the salesperson, … See the full activity...

Evaluating Direct Marketing Results

Responses to direct marketing campaign may include direct sales, appointments with salespeople, and opportunities for future sales. This activity outlines a variety of responses for a direct mail campaign for an insurance company. If you were the manager for the campaign, how satisfied would you be with the following results?

 

ACTIVITY/TASK

‘Got You Covered’ insurance company sent out 1,000 direct … See the full activity...

Will the Retailer Support the Sales Promotion?

A significant proportion of planned sales promotions do not get effectively, implemented due to the lack of full support by the retailer (except for major brands who tend to have strong retailer relationships). Your task in this activity is to determine whether or not the retailer is likely to run/support the sales promotion.

 

ACTIVITY/TASK

Big ‘n Tasty noodles is the … See the full activity...

Return on Promotional Investment (ROI)

The need to justify a firm’s promotional investment, using some of return on investment assessment, is starting to become more common practice. For each of the following decisions, determine whether the promotional expenditure generates a positive return on investment. The first one has been done as an example for you. (Note: Just do simple calculations and do not See the full activity...

A Pricing Strategy Success?

In the following case study, your task is to determine whether the firm should continue with its current strategy (which is mainly priced-based) or does it need to adopt a new approach?

 

ACTIVITY/TASK

Credit unions are like small banks that usually only offer services to individual customers (that is, non-businesses). What is unusual about many of them is that they … See the full activity...

Responding to Competitor Pricing

While it is generally acknowledged that it is best to stay out of a price-cutting war, sometimes competitor actions will force you into one. In this activity, your firm is restaurant C and one of your competitors has recently cut their prices. The question is how you will respond.

 

ACTIVITY/TASK

Three Blue Mountains Restaurants

Let’s assume that there are three … See the full activity...

Setting Your Price

Here is a hypothetical situation that you could potentially face in your career. Assume that you decide to start a business as a marketing consultant.  Complete the following activity to determine how much would you charge for your consulting services?

 

ACTIVITY/TASK

A charity organization has approached you to write a marketing plan for them. From your previous market intelligence, … See the full activity...

What Price Mark-up is Needed?

Many consumers are surprised at the (profit) margin that some retailers make on their sales. However, they do need fairly large margins to cover their significant rent and staff costs that they incur. In this activity, your task is to determine what average prices will need to be charged by these small retailers so they end up making a good See the full activity...

Price Calculations – Marginal Analysis

Marginal analysis is based on the assumption that as the product’s price alters, so will its level of demand (sales). Therefore, this approach looks for the maximum profit point, when considering the firm’s cost structure and the likely sales at different price points (which is essentially the product’s demand curve). 

 

ACTIVITY/TASK

Determine the best price point (that is, what is … See the full activity...

Price Calculation – Target Profit Pricing

As the term suggests, target profit pricing is designed to determine how many units we will need to sell to both cover costs AND achieve a set profit. In some firms, marketers are allocated a profit contribution goal/target for the year, and they will use this approach to estimate the required sales volume. Work through the following two examples to See the full activity...

Price Calculation – Breakeven Pricing

Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach.

 

ACTIVITY/TASK

Using break-even analysis:

  1. How many units need
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Price Calculation – Cost-plus Pricing

Cost-plus pricing is a very simple form of pricing. This approach was once fairly common, but is less widespread today. Your task for this activity is to work through the following two examples to gain a better understanding of this approach.

 

ACTIVITY/TASK

Using cost-plus pricing to:

  1. Set the price if you expect to sell 1,000 units and you want a
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A Great Idea, But Would You Invest?

This task relates to the new product process phase of ‘idea screening’. Review each of the following new product proposals. Which ones do you think have potential and should go ahead? Which ones have very limited potential?


ACTIVITY/TASK

  1. A local inventor has invented a bicycle that can fold up for easy storage. He thinks that the bike will have great
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Generating New Product Ideas/Concepts

Firms will use a variety of methods to generate new product ideas/concepts. Review the following examples and identify what approach each firm is using. Which approach do you think would be the most successful? Why?

 

ACTIVITY/TASK

  1.  “At our firm, we simply copy the competitors’ new products. I mean, we let them do all the hard research and analysis. And once
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Why New Products Fail?

Why do new products fail? Some of the answers are highlighted below in a discussion between various managers. Your task to identify a list reasons why new products fail and identify which of these factors could NOT be adequately assessed prior to actually going to market with the new product.

 

ACTIVITY/TASK

Steven:

New products obviously fail because of poor … See the full activity...