Learning Goal: Im working on a business question and need guidance to help me l Leave a reply Learning Goal: Im working on a business question and need guidance to help me learn.Using the Case Study on C2. Montana Mountain Biking (Ch. 4 of the textbook) answer question 1 and any other of the following ones in a single APA style document.case- C2. Montana Mountain BikingJerry Singleton founded Montana Mountain Biking (MMB) 18 years ago. MMB offers one-weekguided mountain biking expeditions based in four Montana locations. Most of MMBs newcustomers hear about the company and its tours from existing customers. Many of MMBs cus-tomers come back every year for a mountain biking expedition; about 80 percent of the riderson any given expedition are repeat customers.Jerry is happy with this high repeat percentage, but he is worried that MMB is missing alarge potential market. He has been reluctant to spend a lot of money on advertising. About 10years ago, he spent $80,000 on a print advertising campaign that included ads in several out-door interest and sports magazines, but the ads did not generate enough additional customersto cover the cost of the advertising. Five years ago, a marketing consultant advised Jerry thatthe ads had not been placed well. The magazines did not reach the serious mountain bikeenthusiast, which is MMBs true target market. After all, a casual mountain bike rider wouldprobably not be drawn to a week-long expedition.Another concern of Jerrys is that more than 90 percent of MMBs customers come fromneighboring states. Jerry has always thought that MMB was not reaching the sizable market ofserious mountain bike enthusiasts in California. He talked to the marketing consultant aboutbuying an address list and sending out a promotional mailing, but producing and mailing theletters seemed too expensive. The cost of renting the list was $0.10 per name, but the printingand mailing were $4 per letter. There were 60,000 addresses on the list, and the consultant toldhim to expect a conversion rate of between 1 and 3 percent. At best, the mailing would yield1800 new customers and MMBs profit on the one-week expedition was only about $100 percustomer. It looked like the conversion cost would be about $246,000 (60,000 × $4.10) to obtaina profit of $180,000 (1800 × $100). The consultant explained that it was an investment; becauseMMB had such a high customer retention rate, the profit from the new customers in the secondor third years would exceed the one-time cost of the mailing in the first year. Jerry was notconvinced.Nine years ago, MMB launched its first Web site. It included information about the companyand its tours, but Jerry did not see any need to include an expedition-booking function on thesite. He did think about selling caps and jackets with the MMB logo, but that idea never wasimplemented. The MMB logo is well known in the mountain biking community in the upperMidwest.The MMB Web site includes an e-mail address so that visitors to the site can send ane-mail requesting more information about the expeditions. Robin Davis, one of MMBs expedi-tion leaders, is an amateur photographer who has taken many photos while on the trails overthe years. Last year, she had those photos digitized and put them on the MMB Web site. Thenumber of e-mail inquiries increased dramatically within a month. Many of the inquiries wereabout MMBs expeditions, but a surprising number asked for permission to use the photos, orasked if MMB had more photos like those for sale. Jerry is not quite sure what to make of thepopularity of those photos. He is, after all, in the mountain bike expedition business.Required:1. Review the five stages of customer loyalty shown in Figure 4-5 and prepare a report ofabout 200 words in which you classify MMBs customers. Estimate the percentage of MMBcustomers who fall into each of the five categories. Support your classification with logicand evidence from the case narrative.2. In a report of about 200 words, recommend an e-mail marketing strategy for MMB. In yourrecommendation, consider the results of MMBs earlier print mail advertising campaign,your answer to the first requirement, and the potential offered by permission marketing.3. In about 300 words, explain how MMB could use social media-based viral marketing tacticsto gain new customers and cement its relationships with existing customers. In youranswer, be sure to discuss features that MMB should include on its Web site and itsFacebook page to support the viral marketing strategy. This entry was posted in Business on December 7, 2021 by .
