Zappos investment analysis - Assignment Example

Zappos investment analysis Many brands and businesses are looking to promote and market their products through billboards, TVCs and advertisements onradio as these marketing mediums are considered as highly effective (Keller, 139-155). Zappos is the largest online store of the world and it is using different marketing tools to promote the company’s offerings. Mainly the company has been focusing to promote its products through online marketing tools such as Social media, Search engine optimization, YouTube marketing and blogging.

However it is high time that the company should use outdoor advertising to promote the company’s offerings. Before making the decision, it is crucial to analyze the cost to benefit ratio or return on investment of different marketing mediums.CostExpected increase in trafficExpected increase in revenuesRevenue to CostIn DollarsIn PercentIn PercentIn DollarsIn DollarsBillboards1,750,00025%5.00% 50,000,000 28.57TV2,500,00020%3.25% 32,500,000 13.00Radio1,000,00010%1.50% 15,000,000 15.

00As all these marketing mediums would help Zappos to add traffic as well as add revenues and increase the sales of the company. However, from the analysis the company would be able to get more traffic from billboards than other two mediums TV commercials and radio advertisements. But still, investment in billboards, radio advertisements and TV commercials look profitable and by investing more on these three marketing mediums, the company can increase their sales and profitability. However, all these three mediums will be helpful for the company in increasing the traffic on the website and increasing sales.

So, the returns on investment from these three marketing mediums are positive, thus, the company should invest in these marketing mediums. Work CitedKeller, Kevin Lane. "Building strong brands in a modern marketing communications environment." Journal of marketing communications 15.2-3 (2009): 139-155.