A Hands-On Practice: The Intention Of This Assignment Is To

A Hands On Practice The Intention Of This Assignment Is To Apply The

This assignment aims to apply marketing concepts to real-world situations through a series of practical exercises. The tasks involve analyzing advertising budgets using industry standards, evaluating media costs for targeted audiences, and determining the appropriate sales force size to optimize customer relationships. Students are instructed to utilize concepts from course readings and the APUS library to formulate comprehensive responses, citing credible sources as needed. The expected length of the submission is approximately 2 to 3 pages.

Paper For Above instruction

Introduction

Marketing decisions are inherently linked to quantitative analysis and strategic planning. From determining advertising budgets to assessing media costs and allocating sales personnel, each decision influences a company's market presence and profitability. This paper addresses three distinct but interconnected scenarios: setting advertising budgets based on industry ratios, evaluating cost-effectiveness of print media for targeting senior consumers, and calculating the necessary number of salespeople to maintain customer relationships. Drawing upon industry data, scholarly insights, and practical considerations, this discussion sheds light on how marketing professionals can make data-driven, strategic decisions in their respective fields.

Setting Advertising Budgets Using Industry Ratios

One common approach to establishing advertising budgets is the percentage of sales method, which involves allocating a set percentage of current or forecasted sales based on industry standards and competitor benchmarking. Industry trade publications such as Advertising Age provide valuable data on advertising-to-sales ratios, aiding marketers in making informed decisions. For instance, beverage companies typically allocate around 8-12% of sales to advertising, reflecting high competition levels and the importance of brand visibility (Kotler & Keller, 2016). Bicycle dealerships often allocate approximately 4-6%, as their marketing efforts tend to focus on local community engagement and seasonal promotions. Furniture stores may assign 3-5%, depending on market saturation and inventory turnover rates. Jewelers, emphasizing quality and exclusivity, might dedicate 5-8% of sales, while women's clothing stores could allocate 6-10% owing to fashion cycles and trend-driven markets. Automobile manufacturers, with vast marketing budgets, often spend 2-4% of sales but can vary significantly based on the brand and market conditions (Lamb, Hair, & McDaniel, 2018). Such percentages serve as guidelines, enabling marketers to budget effectively while remaining adaptable to specific market dynamics.

Evaluating Media Cost-Effectiveness for Reaching Seniors

Given that AARP Magazine and Reader's Digest are leading publications among consumers aged 50+, advertisers seeking to target this demographic must consider cost-effectiveness and audience reach. Using the provided advertising rates, the cost per thousand (CPM) can be calculated for a full-page, 4-color advertisement in each magazine. Suppose AARP charges $160,000 for a full-page ad, and Reader's Digest charges $180,000. If AARP has a circulation of 30 million and Reader’s Digest has 24 million, the CPM for AARP would be approximately $5.33, while for Reader's Digest it would be approximately $7.50 [(Cost / Circulation) x 1,000]. This indicates that AARP is more cost-effective in reaching a large audience of seniors.>

Targeting a specific market influences advertising decisions significantly. A lower CPM and highly relevant audience increase the return on investment (ROI). Although Reader’s Digest might have a broader or more engaged senior readership, AARP's larger circulation offers a broader outreach and potentially better cost efficiency. Therefore, selecting a magazine requires balancing cost with audience relevance, ensuring that advertising budgets deliver maximum value by reaching the right consumers effectively (Belch & Belch, 2018).

Determining Sales Force Requirements

Effectively managing customer relationships necessitates adequate sales staffing. To determine the number of salespeople needed for 3,000 customers, each requiring ten visits annually, we start by calculating total sales calls: 3,000 customers x 10 visits = 30,000 visits per year. Each visit lasts approximately 2.5 hours, resulting in a total of 30,000 x 2.5 = 75,000 hours required annually. If each salesperson has 1,250 hours per year dedicated to customer interactions, dividing total hours by annual hours per salesperson gives 75,000 / 1,250 = 60 sales staff required. Accurate staffing ensures that customer needs are met consistently, fostering loyalty and enhancing revenues.

Understanding and implementing this practice is vital because it aligns sales resources with customer demand, prevents under- or over-staffing, and optimizes the use of marketing and sales efforts. Proper staffing enhances relationship management, which is crucial in competitive markets as it builds trust, encourages repeat business, and facilitates cross-selling opportunities (Jobber & Lancaster, 2015).

Conclusion

In conclusion, applying these marketing calculations—setting advertising budgets using industry ratios, analyzing media cost-effectiveness, and calculating appropriate sales staffing—empowers marketers to make strategic, data-driven decisions. Such analytical approaches contribute to allocating resources efficiently, maximizing outreach, and sustaining customer relationships. As demonstrated, integrating theoretical knowledge with real-world data ensures marketing practices are both effective and adaptable in a dynamic marketplace.

References

• Belch, G. E., & Belch, M. A. (2018). Advertising and Promotion: An Integrated Marketing Communications Perspective (11th ed.). McGraw-Hill Education.
• Jobber, D., & Lancaster, G. (2015). Selling and Sales Management (10th ed.). Pearson Education.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Lamb, C. W., Hair, J. F., & McDaniel, C. (2018). Principles of Marketing (8th ed.). Cengage Learning.
• Additional industry reports and relevant scholarly articles from the APUS library databases to support data points and analysis are recommended for thoroughness.