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I have no idea how to calculate ROMI.

Could someone help me how to calculate, Please?

Problem:
Conversion
Pretend you work for the Tournament Player's Club (TPC), which owns several top-notch golf courses in the U.S. Your marketing process is 3 steps: Your 1st goal is to get "Targets" (local golfers who do not yet have a membership to a TPC course) to attend a free weekend golf clinic. The purpose of the clinic is to make Guests familiar with the clubhouse, pro shop, staff, and amenities. It costs you $210 to host each Guest including instructor fees and driving range usage. When Targets accept this offer, they are reclassified as "Guests." Your 2nd goal is to motivate Guests to participate in a weekend tournament. The purpose of the tournament is to expose Players to your exceptional and challenging courses. Each Player costs $280 for green fees, cart usage, beverages, and tournament staff. Guests who accept this offer are reclassified as "Players." Your final goal is to get Players to sign-up for a membership, which costs $28,000 per couple and is payable in monthly installments of $699. It costs you $36 to process each membership application. All membership applications are approved. Players who accept your membership invitation are reclassified as "Members." You have a budget for this program of $3,750,000.

Question:
How many new members do you need to satisfy an ROMI of $5?

Thank you.

5 answers

Doesn't your return on marketing investment depend upon how many Targets, Guests and Players you host?
Thank you Ms. Sue.
Yes, question is how many new members do you need to satisfy an ROMI of $5.

Are there any formula to calculate ROMI in this case?

Thanks.
Thank you so much, Sra!
I think I have you for the same marketing class with Capone at SDSU. I couldn't open the lecture slide, so I am also struggling to find the answers.
Hi, pAO!
I got two answers and I do not know which is correct.

Target ROMI =$5
Budget $3,750,000
Price = ??

Target Revenue = ( Marketing Investment x $ROMI)

Customers = (Revenue/ price)

I do not know if I have to devide $28000 by two?

Because a membership costs $28,000 per couple? Also $699??