Marketing Budget Essay Example | Topics and Well Written Essays - 750 words

Marketing Budget - Essay Example The above spread sheet is the explanation of the actual workings, response rate, CPM, Prospects generated, and conversion rates. The spa is actually expected to have 842 conversions a month from these promotions and an average sales per head of $80 will result in sales of $67360 per month. Response rates have been taken at the following percentages News paper ads at 2%, Magazine -1 % and Bill Boards - .5%, in the Print media. As the spa is using the pull strategy to market its services, hence it currently will not employ a telesales team to actively push sales over the phone. Besides, the spa does not possess a large calling base. However, with an existing base of 250+ names and numbers it decides to send direct mail and a 5% conversion on this generates 12 prospects. Sales Force: The spa operates only with a minimum of 2 salesmen who make 7 calls a day, 5 days a week with 20 % prospects and a 35% conversion rate on the prospect. A senior member will accompany them to a corporate house once a week and the sales men will take the lead from there to generate further business. Events and Sponsors: This will generate an additional 50 % conversion rate considering the celebrities who would visit the spa as this lures people to be present in the spa during their visit to the spa. The CPM for Television is $6 per 1000 viewers and this would result in $60 for a 30 second commercial aired once. Airing this 4 times a day, 30 days a month costs $7200. The CPM on the internet for Face book and MySpace is $.5 for 1000 views a day ,$50 for 1,00,000 views 30 days a month is $1500. The conversions for all print and non print prospects have been kept a conservative 15%. The budget mentioned is both viable and comprehensive and even a 15% slip on the expected rate will leave the spa with a healthy Net Profit