Question

Develop a marketing budget/ROI projection for one year for a computer company (e.g Dell, Apple) and explain the reasoning behind it.

Answer 1

A computer company sucha s Dell or Apple is a sales oriented company, where the main objective is to maximize their sales in order to gain maximum market share and attain greater profitability. A typical marketing plan for any such sales driven company is majorly focused on consumer outreach, which can be achieved through a variety of initiatives. We can develop a marketing budget/ Roi projection as below:

As projected in the above table, the sales target is 5 million units for the company which has launched a new product, which will be sold at $1000 each, so tatal revenue will be $ 5000 million.

The marketing budget available is $250 million which is 5% of total revenue.

The spending pattern has been provided in the table above, where we can analyze that the highest spending is on Digital Advertising. As we are into a digital era, so most of the potential customers can be targeted in the digital space, which includes the social media platforms. Apart from it, the new product launch events are organized to gain media and consumen attention, which is another important area for spendings.

A significant amount is also being allocated for traditinal marketing too such as print media and others. Also a good amount has been kept for innovative marketing too to provide new and fresh advertising feel to the consumers.

So, the ROI for the product as a whole stands at 23% and for the marketing spend at 460% as per the budget projections presented above.