Question

MAKETING QUESTION

1. Assume you are selling environmental design consulting, and an important part of your sales presentation involves using your company Web site to demonstrate previous projects you have completed, interactive customer surveys, and your company’s brand image. However, when you arrive at your customer’s place of business to set up your presentation, you learn that the Internet has been down all morning and may not be back up until the next day. What could you have done to prepare for this sort of unforeseen problem in advance?

2. Assume you are a sales rep for an Internet advertising company. Your prospect, an online hardware retailer that specializes in compression pumps, is concerned about making the investment for Internet advertising. You want to incorporate the ROI into your presentation. If the prospect spends $90,000 in advertising, it will generate 120,000 clicks to the company Website. At a 2 percent conversion rate (2 percent of the customers who visit the site make a purchase), that is 2,400 orders. If each order is $230, the sales generated from the online ad would be $552,000. What is the prospect’s ROI (show your math)? How would you incorporate this ROI into your sales presentation?

Answer 1

(1)

When presenting to the business prospect’s location, one has to be prepared for the unforeseen circumstances. As my presentation has different multimedia, I prefer to contact the concerned person from the prospect to confirm the equipment available for the presentation before the day of the presentation. Moreover, I used to reach early to the venue. In this case, the internet problem is there at the venue. The loss of internet connectivity may disrupt the presentation, so I carry Wi-Fi dongle. Moreover, I carry some videos of past projects in a pen drive, which I can show to prospective clients. I carry brochures and other physical marketing material with me to adapt to any situation at the client’s office. So the problem of internet connectivity could not impact my presentation. In case, I did not have any access to use a pen drive or Wi-Fi dongle, I could have used the brochures and other marketing material to show the clients.

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(2)

ROI:

Budget = $90,000

Number of clicks = 120,000

Conversion rate = 2%

Order rate = $230

Sales = 552,000

Total revenue = Value of a conversion * conversion rate * number of clicks = 230*0.02*120,000 = 552,000

Total cost = Cost per click * number of clicks = (Budget/Number of clicks) *number of clicks = 90,000/120,000 * 120,000 = 90,000

ROI = (Total sales – Total cost)/Total cost * 100 = (552,000 – 90,000)/90,000*100 = 462000/90000*100 = 513.333%

I would incorporate ROI by comparing the data of sales before the advertising campaign and sales after the advertising campaign of client companies (company’s names will not be disclosed).