Project 2  consumers and marketing(your name)

1. Project 2: Consumers and Marketing
(Your Name)
BMGT 496 (section number)
(Instructor’s Name)
(Please do not use pictures or images on the Title Page –
remove from your final copy)
As consumers we can define our attitudes and acceptance, or
rejection of advertising based upon our perceptions and
experience. But as students of Business Management, we are
called upon to examine the topic more in depth and from a
corporate perspective. Project 2 will address the following
questions from the perspective of a business owner or chief
marketing officer.
Introduction
(Write an Introduction paragraph.The Introduction paragraph is
the first paragraph of the paper and will be used to describe to

2. the reader the intent of the paper explaining the main points
covered in the paper. This intent should be understood prior to
reading the remainder of the paper so the reader knows exactly
what is being covered in the paper.)
(Identify from which perspective the paper will be written:
business owner or chief marketing officer.)
(Write the introduction last to ensure that the main points are
covered.)
Product Selection and Its Typical Consumer
(Select and discuss one good example of a product, brand or
industry and its typical consumer. The product selection can be
of your choice, but the information presented about it is from a
reliable source and properly cited and referenced.)
Consumer Purchase Decision
(Define the consumer purchase decision by one or more of the
five “conceptions”.)
(Explain how the product is suited for marketing to one or more
of the 5 conceptions and why not to the others.)
Ethical Principles
(Explain what ethical principles would apply to the marketing
of the selected company’s or industry’s products? Include an
alignment of the principles selected in relation to caveat
emptor. )
(Explain the responsibilities of the marketer in relation to ethics
concepts you have studied, including HOW its application
would impact the marketer’s message and programs.)
Privacy Policies
(Explain specifically what would be prescribed
for the company’s social media and data privacy policies related
to the advertising of its product(s).)
Conclusion

3. (Write a concluding paragraph that is brief and summarizes
the main points. Provide specific information related to the
major topics discussed in the paper.)
References
(The reference page is on a separate page from the report. The
reference page is completed according to APA with each
reference left-justified with hanging indentation for subsequent
lines. References are completed in alphabetical order. Please
see the module, Learn to Use APA to ensure references are in
APA format.)
Franklin University
MATH 810 – Project III
MATH 810 APPLIED STATISTICS
PROJECT III: MARKETING & ADVERTISING ANALYSIS
You are the regional marketing vice president overseeing all US

4. marketing for an international pharmaceutical distributor. Your
team has recently submitted a proposed budget for advertising
and marketing spend for the upcoming year to support 10%
annual revenue growth for your company’s best-selling product
Dilomatox. A summary of that budget along with this year’s
forecasted data (forecasted since your fiscal year isn’t quite
complete yet) is below:
DILOMATOX – Proposed Marketing Budget
Proposed Budget
(Next Year)
Current Forecast
(This Year)
% Change
Advertising and Marketing Spend (total)
$64,250,000
$56,860,000
+13%
Product Revenue
$1,164,471,000
$1,058,610,000
+10%
Marketing Spend as % of Revenue
5.52%
5.37%
Your senior budgeting committee reviews your budget and the
CFO sends you a summary of her team’s findings, a week ahead
of your budgeting meeting with the CEO. The CFO explains to
you she will not support your proposed budget increase, because
your main competitor Zoraffil is forecasted to spend 8.5% less
on advertising and marketing spend but is on target to earn
7.5% more revenue. Furthermore, she has recommended your

5. budget be reduced to 4.57% of revenue to match what Zoraffil
has achieved. To meet this goal, she has asked you to reduce
your proposed budget by $11 million before next week’s
meeting with the CEO. Your team has already begun
identifying which marketing and advertising programs it would
choose to cut.
CURRENT YEAR FINANCIAL FORECASTS
Dilomatox
Zoraffil
% Change
Advertising and Marketing Spend (total)
$56,860,000
$52,040,000
-8.5%
Product Revenue
$1,058,610,000
$1,138,510,000
+7.5%
Marketing Spend as % of Revenue
5.37%
4.57%
To support their findings, the committee has supplied your team
with the attached data file, providing weekly marketing spend
and revenue (in millions of dollars) for the last 52 weeks for
both brands. Comment by Nimet Alpay: Attach the data set
here.
Your task is to analyze this data, ‘uncover the story’ behind
how advertising spend and revenue for these brands are related
(or not!), and to write a managerial summary that you can use to
justify your proposed advertising and marketing budget. You

6. should organize your summary in a way that provides a strong
and coherent argument, but in that argument your analysis
should answer all of the following questions:
1. a. Describe the relationship between advertising and revenue
for Dilomatox. Would you characterize these relationships as
strong or weak?
Support your response with relevant graphs and statistics.
b. Describe the relationship between advertising and revenue for
Zoraffil. Would you characterize these relationships as strong
or weak?
Support your response with relevant graphs and statistics.
2. Analyze the multivariate relationship between Dilomatox’s
revenue and the other variables provided (Dilomatox’s
marketing spend, Zoraffil’s revenue, and Zorafill’s marketing
spend). Is there a significant relationship between Dilomatox’s
sales and any (or all) of these variables?
Support your response with relevant charts or statistics.
3. What percent of the variation in revenue does advertising and
marketing spend explain for both brands? Explain.
4. Based on your analysis, if both brands ceased all advertising
and marketing spend, how much revenue would be lost?
Explain.
5. What impact will the CFO’s proposed $11 million dollar cut
to your budget have on Dilomatox revenue next year?
Your managerial summary should include a description of the
statistical tests or processes used to answer each question,
explanation of the necessary results (appropriate descriptive or
graphical summaries, statistics like r-values and least-squares
regression equations, predicted values -- and if appropriate
estimates of error for any parameters or predictions made). It

7. should also show that any required assumptions for any
statistical procedures used are valid. Use a 95% level of
significance for any statistical tests.
Points: Accuracy of answers to questions above (12 points
each), write-up of results in a managerial report (15 points).
Total: 75 points
1
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