Promotional Profitability

Question 1

Total sales ($,#)

Answer 1

= Baseline Sales ($,#) + Incremental Sales ($,#)

Question 2

Baseline Sales:

Answer 2

Expected sales results, without the marketing

programs under evaluation.

Question 3

Incremental Sales ($,#)

Answer 3

= Total Sales ($,#) – Baseline Sales ($,#)

= Incremental Sales from Advertising + Incremental Sales from Trade Promotion + Incremental Sales from Consumer Promotion + Incremental Sales from Other Marketing Activities

Question 4

Lift (%) =

Answer 4

= Incremental sales ($,#) / Baseline sales ($,#)

Question 5

Cost per Incremental Sales ($)

Answer 5

= Marketing Spending ($) / Incremental Sales ($,#)

Question 6

ROMI =

Answer 6

(Incremental Sales x Percentage Contribution margin - marketing spending) / Marketing Spending

Question 7

Coupon Redemption Rate (%)

Answer 7

= Coupons Redeemed(#) / Coupons Distributed (#)

Question 8

Cost per Redemption ($)

Answer 8

= Coupon Face Amount ($) + Redemption Charges ($)

Question 9

Pass-Through Percentage (%)

Answer 9

= Value of promotional discounts provided to consumers by the trade ($)/ Value of promotional discounts provided to trade by manufacturer($)

Question 10

Percentage Sales on Deal

Answer 10

= Sales with temporary discount ($,#)/ Total sales ($,#)

Question 11

Impressions are the basic unit of advertisement

measurement.

Answer 11

Impressions, Exposures, and Opportunities-to-See (OTS):

Impressions = Exposures = OTS

Question 12

CPM ($)

Answer 12

= Advertising Cost ($) / Impressions Generated (#) (in thousands)

Question 13

Impressions (#)

Answer 13

= Reach (#) * Average Frequency (#)

Question 14

Reach (#):

Answer 14

number of unique individuals exposed to certain

advertising

Question 15

Average Frequency (#):

Answer 15

the average number of times each person who has been reached was exposed to the advertising

Question 16

Average Frequency (#)

Answer 16

= Impressions (#) / Reach (#)

Question 17

Reach (#)

Answer 17

= Impressions (#) / Average Frequency (#)

Question 18

Net Reach

Answer 18

•It measures unique viewers of an ad.

Question 19

GRP%

Gross Rating Points

Answer 19

= Impressions (#) / Defined Population (#)

Question 20

Target Rating Points:

Answer 20

The gross rating points delivered by a

media vehicle to a specific target audience.

Question 21

Effective Frequency (#):

Answer 21

Number of times a person needs to be exposed to an ad for it to be counted as “effective”.

Question 22

Effective Reach (#):

Answer 22

–Number of people reached with frequency equal to or greater than effective frequency.
–Purpose: To measure the portion of an audience that is exposed to an ad enough times to be influenced.

Question 23

Share of Voice (%)

Answer 23

= Brand Advertising ($,#) / Total Market Advertising ($,#)

= Company impressions / Total impressions in the market

Question 24

Hits (#)

Answer 24

= Pageviews (#) * Files on the page (#)

Question 25

Clickthrough Rate (%)

Answer 25

= Clickthrough (#) /Impressions (#)

Question 26

Bounce Rate: The proportion of visitors that left a site after viewing the first page. 
Bounce Rate (%)

Answer 26

= Visits that access only a single page (#) / Total

visits to the web site (#)

Question 27

Abandonment Rate

Answer 27

= Carts not completed (#) / Customer Baskets initiated (#)

Question 28

Cost per thousand impression

Answer 28

= Advertising cost ($) / # of impressions in thousands

Question 29

Cost per Click ($)

Answer 29

= Advertising cost ($) / Number of Clicks Generated (#)

Question 30

Cost per Order ($)

Answer 30

= Advertising cost ($) / Orders (#)

Question 31

Conversion Rate (CR): The ratio of the number of orders or leads to the number of clicks.
Conversion Rate (%)

Answer 31

= Orders or Leads (#) / Clicks (#)

Question 32

Friends (#)

Answer 32

= Number of friends of the entity registered on a social network (#)

Question 33

Likes (#)

Answer 33

= Number of individuals favoring a social networking post/page (#)

Question 34

Cost per friend ($)

Answer 34

= Total costs to provide social Networking Presence / # of Friends

Question 35

Cost per like ($)

Answer 35

= Total costs to provide social Networking

Presence / # of Likes