A fashion-boutique chain store, with 13 units, in the Washington, D. C. area is planning a big sale in its suburban warehouse on the three-day Labor Day weekend (Saturday through Monday.) On sale will be nearly $2 million worth of Men's and Ladies sportswear and accessories, perfect for the upcoming Fall season. ProfessorPat's hopes to realize at least $900,000 in sales during this three-day event. When ProfessorPat's conducted this exact sale last year, the first days sales were 50% of the total. The second day's sales were 35% of the total, and the last day's sales were 15% of the total. Last year, remarkably, one out of every two customers who came to the event, made a purchase. Sales such as this in the D. C. area draw very large numbers of people, some driving from as far away as 50 miles. In addition, they represent all socio-economic levels, but most are confirmed bargain hunters. You are the assistant to the Chief Marketing Officer and your boss wants you to plan out the entire spending and ad placement specifics, using a mixed-media approach, to advertise and promote this event. 

Here are your options: 

1. A full-page ad in the Washington Post costs $10,000; while a half-page ad costs $6,000, and a quarter-page ad costs $3,500. To get the maximum value from a newspaper campaign, it is company policy to always run two ads (not necessarily the same size) for such events. 

2. The local northern Virginia paper is printed weekly and distributed free to some 15,000 households. It costs $700 for a full-page ad and $400 for a half-page ad. 

3. To get adequate TV coverage, at least three channels must be used, with a minimum of eight 30 second spots on each, at $500 per spot, spread over three days. Producing a TV spot costs $3,000. 

4. The store has contracts with three radio stations. One appeals to a broad general audience aged 25 to 54. One is popular with the 18 to 25 year-old group. The third, a classical music station, has a small but wealthy audience. Minimum costs for a saturation radio campaign, including production, on the three stations are $8,000, $5,000 and $3,000 respectively.

5. To produce and mail a full-color flyer to the store's 80,000 charge card customers costs $10,000. When the company used such a mailing piece before, about three percent responded. 

MAJOR QUESTIONS 

1. ProfessorPat's wants a mixed-media ad campaign to support this event. How would you prepare an advertising plan for the CMO that costs no more than $40,000? 

2. Work out the daily scheduling of all advertising 

3. Work out the dollars to be devoted to each medium 

4. Justify your plan. (Extremely Important)