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### For this final project, we are going to follow James at Snackwall. James launched Snackwall a year ago, and so far, it’s been a real success. Now, James is eager to expand his audience and he is preparing to give his manager an overview of the past year’s success and ask for an advertising budget to help him grow the business. James knows that going to his boss with a solid plan will help to convince him to allocate marketing budget to the expansion of Snackwall. —————————————————————————————————————— As a starting point, James identifies the segments that he should focus on for his advertising campaign. After all, James knows that it would not be a good use of his money to market to everyone. James relies on K-means clustering, using last year’s data on business size and amount spent for Snackwall clients. James worked with Alya, his analyst, and together they ran several iterations of their K-means clustering. Now they are using the chart below to determine the number of clusters James should focus on in his campaign. How many segments do you suggest James defines for his marketing campaign based on this plot?

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### Based on the K-means clustering, James found 3 clusters that seem to define his current client base. Since James used the dollar amount spent and the business size as the starting variables for his cluster analysis, he knows that the segments are quite distinct in terms of these variables. How would you define Cluster 2?

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### Based on the K-means clustering, James found 3 clusters that seem to define his current client base. Since James used the dollar amount spent and the business size as the starting variables for his cluster analysis, he knows that the segments are quite distinct in terms of these variables. How would you define Cluster 3?

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### Based on the K-means clustering, James found 3 clusters that seem to define his current client base. Since James used the dollar amount spent and the business size as the starting variables for his cluster analysis, he knows that the segments are quite distinct in terms of these variables. How would you define Cluster 1?

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### James decides that he should focus on the third cluster for his marketing campaign. He believes this segment has more potential, because he has seen from his previous campaign that it is a little harder to convince large businesses to subscribe. After the profiling exercise, he decides to call the segment the ‘Health conscious startups’ to help other people understand and remember this segment. Next, James turns to showing his management that the advertising budget he was given last year was money well spent. So, James calculates the Return on Ad Spend for last year, and he looks at ROAS by cluster. He shows the following results based on the total ad spend last year of $250K. The total revenue generated was $750K. The total cost invested last year was $500K, so the profit for the year for Snackwall was $250K.

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### James decides that he should focus on the third cluster for his marketing campaign. He believes this segment has more potential, because he has seen from his previous campaign that it is a little harder to convince large businesses to subscribe. After the profiling exercise, he decides to call the segment the ‘Health conscious startups’ to help other people understand and remember this segment. Next, James turns to showing his management that the advertising budget he was given last year was money well spent. So, James calculates the Return on Ad Spend for last year, and he looks at ROAS by cluster. He shows the following results based on the total ad spend last year of $200K. The total revenue generated was $800K. The total cost invested last year was $500K, so the profit for the year for Snackwall was $300K.

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### James decides that he should focus on the third cluster for his marketing campaign. He believes this segment has more potential, because he has seen from his previous campaign that it is a little harder to convince large businesses to subscribe. After the profiling exercise, he decides to call the segment the ‘Health conscious startups’ to help other people understand and remember this segment. Next, James turns to showing his management that the advertising budget he was given last year was money well spent. So, James calculates the Return on Ad Spend for last year, and he looks at ROAS by cluster. He shows the following results based on the total ad spend last year of $120K. The total revenue generated was $940K. The total cost invested last year was $510K, so the profit for the year for Snackwall was $430K.

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### James understands that his management will also want to know the ROI for the advertising campaign he ran last year. Which of the following formulas do NOT calculate ROI. (Select all that apply)

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### James understands that his management will also want to know the ROI for the advertising campaign he ran last year. The equation to calculate ROI is ROI = (net spend / net profit) * 100. True or False?

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### James understands that his management will also want to know the ROI for the advertising campaign he ran last year. Which of the following formulas should James use to calculate the ROI?

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### James is hoping to get a substantial advertising budget for next year. To achieve that, he knows that it would help to show the CLTV for his clients. That may help convince management that their investment now will really pay off in the future. But, since James only launched Snackwall a year ago, it is going to be difficult to show CLTV. Which of the values that James requires to calculate CLTV does he have access to? (Select all that apply)

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### James is hoping to get a substantial advertising budget for next year. To achieve that, he knows that it would help to show the CLTV for his clients. That may help convince management that their investment now will really pay off in the future. But, since James only launched Snackwall a year ago, it is going to be difficult to show CLTV. What value is James missing to calculate CLTV?

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### James is hoping to get a substantial advertising budget for next year. To achieve that, he knows that it would help to show the CLTV for his clients. That may help convince management that their investment now will really pay off in the future. But, since James only launched Snackwall a year ago, it is going to be difficult to show CLTV. The problem is the value of the Customer Retention Period. True or False?

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### James decides to estimate the retention period for his clients. He believes that he can keep a client for 3.5 years, which is similar to the retention period for the cleaning subscription side of his business. With this in mind, what is the CLTV for Snackwall if the following is true: Average order value = $1000 Average number of orders per year = 15 Profit Margin = 46%

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### James decides to estimate the retention period for his clients. He believes that he can keep a client for 3.5 years, which is similar to the retention period for the cleaning subscription side of his business. With this in mind, what is the CLTV for Snackwall if the following is true: Average order value = $1500 Average number of orders per year = 12 Profit Margin = 59%

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### James decides to estimate the retention period for his clients. He believes that he can keep a client for 3.5 years, which is similar to the retention period for the cleaning subscription side of his business. With this in mind, what is the CLTV for Snackwall if the following is true: Average order value = $1800 Average number of orders per year = 9 Profit Margin = 63%

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### Finally, for his budget presentation, James showed the following chart from a linear regression analysis he ran, evaluating the influence of advertising spending on sales, based on last year’s experience. What does this chart help James prove? (Select all that apply)

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### Finally, for his budget presentation, James showed the following chart from a linear regression analysis he ran, evaluating the influence of advertising spending on sales, based on last year’s experience. This chart helps James prove that sales and advertising spending are 93.5% correlated. True or False?

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### Finally, for his budget presentation, James showed the following chart from a linear regression analysis he ran, evaluating the influence of advertising spending on sales, based on last year’s experience. What does this chart help James prove?

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### James’ management is happy with the progress he made last year, and his presentation was a success. He is given a large advertising budget for the next year, in fact, his budget will now be $250K. James’ manager told him that he trusts he will use the budget well, but that he wants to see that the advertising campaigns James runs are resulting in additional subscriptions. What type of test should James plan to make sure he can prove this to his boss?

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### James’ management is happy with the progress he made last year, and his presentation was a success. He is given a large advertising budget for the next year, in fact, his budget will now be $250K. James’ manager told him that he trusts he will use the budget well, but that he wants to see that the advertising campaigns James runs are resulting in additional subscriptions. James should plan to run an attribution study. True or False?

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### James’ management is happy with the progress he made last year, and his presentation was a success. He is given a large advertising budget for the next year, in fact, his budget will now be $250K. James’ manager told him that he trusts he will use the budget well, but that he wants to see that the advertising campaigns James runs are resulting in additional subscriptions. James should plan to run a random control trial experiment. True or False?

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### Before spending any of his budget, James wants to compare the results from all of his different marketing channels over the past year, to see where his budget would make the most impact. What study should James run to analyze the impact of all of his marketing initiatives on sales?

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### Before spending any of his budget, James wants to compare all of the results in the different marketing channels last year, to see where his budget would make the most impact. James should run an Attribution Study to analyze the impact of all of his marketing initiatives on sales. True or False?

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### Before spending any of his budget, James wants to compare the results he achieved in all of his different marketing channels last year, to see where his budget would make the most impact. James should run a Marketing Mix Model to analyze the impact of all of his marketing initiatives on sales. True or False?

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### While optimizing the sales process, James creates a visualization to represent the sales funnel. Based on this visualization, which approach should James take to increase subscriptions?

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### While optimizing the sales process, James creates a visualization to represent the sales funnel.

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