Evaluating Marketing Campaigns

This model compares three different types of promotion programs over a 180 day period for a restaurant. The three types of marketing campaign compared are: (1) Value Pack mailers offering a free dessert or appetizer with the purchase of two entrées, (2) Buying Radio Ads for a month, or (3) Hiring a firm for website promotion through Search Engine Optimization (SEO). The net income (gross income less program costs) is used to compare the three campaigns. A cloned container is used to calculate the increased profit from each new customer for all three campaigns. The use of a cloned container provide equivalent per customer profit calculations to facilitate comparison between the campaign types.

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