marketing memo 7 - Problem: $40 mil investment = 74 eps ,...

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Sagar Dedhia 905387447 Marketing Management Memo 7 Chapter 11: Sales Promotion The most popular way to evaluate the effectiveness of sales promotion is to track the goal of the promotion and compare the relevant data before and after the promotion is run. The approach does not control for other marketing factors that affect the data and can be confounded of multiple promotions are being fun simultaneously. Customer focused promotions are most often price related but may also involve the product and special events. Customer promotions are incentives to buy the product, but can also increase purchase volume induce customer to switch brands or use larger size and achieve other purchase related goals. Starbucks Case market research group: gathered and analyzed market data requested by the various business units, a category group: that developed new products and managed the menu and margins marketing group: that developed the quarterly promotional plans. Customer satisfaction: was $40m worth investing, since the bottom line was being affected.
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Unformatted text preview: Problem: $40 mil investment = 74 eps , Add labor Customer: Busy times , Slack times , Service time will be improved3 mins Menu: Fancy: multi steps, Proliferation Old Days: Ambiance: 3rd place, Menu consistent, White collar 25-44, Educated , female Today: Stop on the way, Complex menu, Younger, Trendy, mixed Relationship with the customer: Free cups, know their names and favorite drinks, Relationship with Employee: stock options , health care, Value of Highly satisfied customers is high will repay more than $40 mil When we calculate the 12 months total a customer spends at Starbucks and given the total customer base of Starbucks it crosses way above $40 million mark, which justifies the spending in that direction. Also that the main reason for customer dissatisfaction according to Exhibit was serving time. So before Starbucks lost its market share or people...
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marketing memo 7 - Problem: $40 mil investment = 74 eps ,...

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