Task 01:

Question No1.
Why is it important to show value of your marketing program? What
are the risks of not being able to show value?

Midwest Brewing company (MBC) is one of the fast growing brewing companies that was
emerged in last decade as one of the market leaders in this lucrative industry .MBC utilized its
restaurants and tap rooms to attract customers along with the guided tours of the brewery as
well as free beer schools on Saturday and Sunday. Such a free tours and class sessions helps to
demonstrate the brief history of craft beer in local communities and to educate the people to
select the task and how to fully appreciate different flavors I annual two days called taste of
community festival that was initiated by Jessica working as chief marketing officer since last 2.5
years that could not create value to the community by identifying their critical issues they are
facing that were addressed by Andrew.

All these marketing strategies applied by Jessica has increased the expenses more than 20% on
the company revenue to increase the sales irrespective of knowing the success of the
implementation of theses policies to generate the revenue .Andrew has revealed that these
marketing strategies are inevitable to generate the revenues but there expenditures are much
greater as compared to their revenue generation even not at break even stages. We have to
make sure the return on these investment made to generate the more revenue to increase the
cash flow for the maintenance of operating ,investing as well as financing activities of the
organization to generate more cash flows to increase the return on the capital employed for
increase the dividend of the shareholders.

Corporate USA made expenditures near about 300 Billion dollars on advertisement to generate
the more sales which may increase beyond the $1000 Billion if the expenditures on the sales
force have been reached about 11% of total company budgets and some industries made
investment on promotional scheme to about one fourth of its budget which may be prove no
longer fruitful as unavoidable expenditures which may lead to intense competition and facing
the demands will exert the pressure on the market to demonstrate the solid returns of their
efforts leading to marketing budgets slipped from 12.1 percent of company in 2016 to 11.3
percent in 2017.
Q NO 02 ROI Marketing Methodology:

A market planning is a road map of all marketing activities of increasing the turnover of the
business organization for the specific long period of the time which heavily relied upon the
objective function of the entity that may be increase of the production of the units or lowering
of the costs or may be increasing the profits for the organization. This market planning’s applies
to all of individuals working I the organization as well as externally many financial institutes like
banks and stakeholders of the company having interest on stake . To raise the capital from
other investors, it is compulsory that organization have its best return on the capital employed,
return on the investment made to enhance its earnings per share on the stock exchange to
compete many competitors.

Under this approach of the planning, the main focus on the demand of the products that is
prevailing in the market
This howler’s coyote product is more common in those households consumption having
individual income more than 50000 dollars per year that is near about the 35% demand in these
households. These households have more experienced in such a premium quality products

These products have unique taste that is compatible against many competitors which cannot
afford these flavors in such range. These products have also different flavor and taste from the
existing products. As increasing trend The American palate is increasingly intrigued by hot
spices and Howlin’ Coyote brands offer more “kick” than most other prepared chilies.
Howlin’ Coyote’s packaging graphics convey the unique, high-quality product contained inside
and the product’s nontraditional positioning.

Currently these markets demands as well as supply has been increased due to increasing trends
of these brands and flavor distribution at operational level .their turnover has been increased
by increasing awareness among the end consumers and by repeat purchase of such a products
has increased the cash flow toward the entity so entity can increase the return on the capital
employed ,return on the investment made by the shareholders to generate the more profits to
endure the decision making for the investing ,financing as well as operational activities of the
entity

By the end of Year 5,such a products( the chili, salsa, burrito, and enchilada) business will be
expanded to a total of 20 metropolitan areas. This will represent 70 percent of U.S. food store
sales that are expected to reach $693,000 by the end of Year 3 and $1.5 million by the end of
Year 5 because the products’ suppleness of use is a key selling point, recipes are offered to
consumers to stimulate use. The recipes are given at all in-store demonstrations, on the back of
correspondence, through a mail-in recipe book offer, and in coupons sent by direct-mail or
freestanding inserts

Question NO 3. 
Common concerns associated with the existing marketing
measurement:

The American Marketing Association (AMA) is one of the well aware of association considers
these markets set of institutions and processes for creating, communicating, delivering, and
exchanging goods as well as services against ant settled considerations to achieve the objective
function of the entity that may be maximizing the production of the goods, lowering of the
costs of production (by decrease in the fixed as well as variable expenditures) and optimization
of the contribution margin of the entity under the constraints of the sources available under
the decision making and planning strategies implemented by the strategically operations

In accordance with Steve, marketing is not about the conjure facial appearance of your
products or services but it’s about to put side by side quality as well as prices of our products
with our competitors through identifying the core values of your offerings and then being able
to communicate those valuation to the end consumers to earn the opportunity to succeed to
become the market leader

Markets are divided in to three segments based upon the target consumers that are consumer
marketing, business marketing, and internal marketing for the calculation of the value of the
products .Under Activity-Based Value method, some marketers measure their progress based
on the number if the customers personally as well as their communication technology based
orders and some used to collect the data about customers’, knowledge of their programs,
products, and services. Many of the markers focus on the perception of consumers, inputs and
activities instead of outcomes and results influenced by many external and internal
environmental factors and that most of the factors are beyond their control.

The main critics of this activity based measurements is that it does not align with executive
expectation and It will hurt marketing’s credibility because it demonstrate a lack of
answerability and does not generate the frame of mind that marketing should be treated as an
investment instead of a cost.

Under this approach of Result-based value, marketers are be familiar with that marketing about
results, from engender of sales revenue to acquire new customers to compute and make
obvious the value of their promotion programs at the production collision level. By just focusing
only on results may create its own challenges, which include failure to show a chain of evidence
and proof to support the claim that the financial and customer results are certainly due to the
marketing effort which are effected by illustration of chain of evidence, cut off the personal
property of the marketing program proof and deteriorating to do either will hurt the marketer’s
trustworthiness