Topic 2 Assessment 2.pdf - Assessment Task 2 BSBMKG417...

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Assessment Task 2 BSBMKG417 Prepare Marketing Tools and Techniques David Jones has a distinctive position in the current Australian market with a strong and loyal customer base, a strong service ethic and a well positioned store portfolio. A cost benefit analysis provides us with information necessary to evaluate cost opportunities and benefits derived from each. To maintain the trust of investors, shareholders and peers, we must confidently hold the reigns when it comes to tracking return on investment. The advantage of having online campaigns such as email marketing is that we can easily keep track of return on investment and make adjustments quickly. A sales analysis shows that 20% of leads come from email marketing, 15% of those leads convert to sales. The return on investment in email marketing is 3% based on (0.20 x 0.15). As the average cost of a product from David Jones is $100, this means that 1000 leads sent to the website will generate on average, 30 sales conversations which is a revenue of $3000 (3 x 1000). It is estimated that David Jones now spends 50% of their marketing budget on digital media. Over the years David Jones has turned around their marketing strategies with incorporating more convergent techniques, whilst also maintaining some forms of traditional marketing. Based on the above analysis and a budget of $2M, in this new campaign we’ll be focusing the following marketing tools and techniques: Cost Benefit Cost of printed catalogues: $450,000 Cost of cinema advertising: $195,000 Cost of television advertising: $200,000 Cost of Social media: $220,000 Catalogues available in store reach an expected 100,000 customers per week with 15% conversion at $100 purchase each = $1.5M Direct and targeted marketing with cinema and TV advertisings expected to reach another 1% of customers with sale conversions of $70 purchase = $1.12M

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