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Marketing Solving Problem Practice

The document outlines three business scenarios involving pricing, marketing effectiveness, and sales volume analysis. It includes calculations for selling prices, customer acquisition costs, and profit margins under various discount strategies. Each section poses specific questions aimed at determining optimal pricing, cost-effectiveness, and profit maximization strategies.

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Cheryl Latonero
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7 views2 pages

Marketing Solving Problem Practice

The document outlines three business scenarios involving pricing, marketing effectiveness, and sales volume analysis. It includes calculations for selling prices, customer acquisition costs, and profit margins under various discount strategies. Each section poses specific questions aimed at determining optimal pricing, cost-effectiveness, and profit maximization strategies.

Uploaded by

Cheryl Latonero
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1.

Markup and Margin Pricing Problem

A clothing retailer purchases shirts from a supplier at ₱400 per unit. They need to cover
operating expenses of 25% of the selling price and want a net profit of 15% of the selling price.

Questions:

a) What should be the selling price per shirt?

b) What is the peso markup on each shirt?

c) What is the markup percentage based on cost?

d) If they sell 800 shirts per month, what is the total monthly profit?

2. Advertising Effectiveness and Customer Acquisition Cost

A new coffee shop spends the following on marketing in their first quarter:

• Facebook Ads: ₱45,000 → resulted in 150 new customers


• Instagram Influencer: ₱60,000 → resulted in 200 new customers
• Flyers/Print: ₱25,000 → resulted in 50 new customers
• Google Ads: ₱70,000 → resulted in 175 new customers

Average customer lifetime value is ₱8,000.

Questions:

CAC = Marketing Spend ÷ New Customers

a) What is the Customer Acquisition Cost (CAC) for each channel?

b) Which channel is most cost-effective?

c) What is the overall CAC across all channels?

d) What is the ROI ratio (Lifetime Value: CAC) for the best channel?

3. Discount and Sales Volume Analysis

An electronics store normally sells a tablet at ₱15,000 and sells an average of 50 units per month.
They're considering a promotional discount. Market research shows:

• 10% discount → 25% increase in sales volume


• 20% discount → 60% increase in sales volume
• 30% discount → 100% increase in sales volume

The cost per tablet to the store is ₱9,000.

Questions:

a) What is the current monthly profit?

b) Calculate the monthly profit for each discount scenario.

c) Which discount strategy maximizes profit?

d) What is the percentage increase in profit for the best strategy?

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