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Malkam Cross-Cultural Training Case Analysis

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Musette Fowke

on 8 February 2011

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Transcript of Malkam Cross-Cultural Training Case Analysis

MALKAM CROSS-CULTURAL TRAINING Decide on an appropriate marketing strategy regarding the direct mailer and advertising campaigns # # CHAD WIEBE
MUSETTE FOWKE Internal Analysis External Analysis Recommendations Criteria Alternatives Strengths
Well-known Figurehead
Exceptional Networking
Experience with High-Profile Organizations
Product | Price | Place

One-Woman Show
Past Promotional Efforts
Personal Influence and Bias in Marketing Campaigns
Industry Division
Private Organization

Professional Service Firms
Home-Based Cross-Cultural Training
Colleges Opportunities
Growing Industry
Flexibility in Service Offering

Large Firms with Ample Resources
College Language and Culture Training Quantitative
Increase revenue to cover the 2001 Marketing Budget
Increase the language training client count by 10% for 2001
Increase the cultural diversity training client count by 50%

Increase the awareness of the agency
Increase the awareness of all the consultants and their abilities Direct Mailer Alternatives
Mailer Gift Target Market - Current & Past Clients
Mailer Gift Target Market - Current & Past Clients & Cold-Prospecting
Mailer Brochure Target Market - Current & Past Clients & Cold-Prospecting (targeted) Including 10% Discount

Direct Mail Brochure Campaign
Service Discount of 10%

Magazine Advertisment Space
12 - 1/2 Page Spaces
1 - Back-Cover Advertisment Assumed Brochure Cost: $5,000

Brochures: 600

Cost/Brochure: $5,000/600 = $8.33/unit

Maintained Vairable Cost: $1,166.67

Discounted Sale Price (10%): $1,750*0.9= $1,575

New Contribution Margin: $408.33

Break Even: $5,000/408.33 = 12.24 additional days

Required days= 12.24 : 13 days (2.167 Response Percentage)

Required revenue= 13*$1,575 = $20,475 Total Cost of Advertisements: $18,088.35

12 - ½ page: 12*(721+390) = $13,332

1 - Back Cover: $3,183+390 = $3,573

Total Cost Before Tax: $16,905

After GST (7%): $18,088.35

Break Even: $18,088.35/583.33 = 31.008 additional days

Complete Days: 31.008 = 32 days

32 additional days sold = 0.49% response rate of advertisement

Response Rate Calculated on = Subscriber count: 9,000 *.72(percentage of subscribers as senior managers)

Additional Revenue: 32*$1,750 = $56,000
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