For this assignment, you will need to prepare a media budget. Often marketers are expected to arrive at a cost for their marketing plan. In consumer markets advertising expenditures can often represent a large portion of the marketing cost. Assume that you are selling a line of running shoes and the following is a campaign that your team created, estimate the advertising budget.

Part-1

Using Delaware as your test market, calculate the advertising cost using The News Journal (use the cost figures given in the Advertising Level handout).

	Sunday Circulation Total	Number of Households
Total	139,857
Delaware	126,932	298,755
New Castle County , Del.	102,491	188,974
Kent and Sussex counties, Del.	24,441	109,781
Other Outside NDM	12,925

Beside the expense of running the advertising, it cost you $10,000 for the creative work. (A) Calculate the cost based on 1/3 page advertisements once per week for one quarter (13 weeks). (B) Calculate the reach and GRPs of the media buy for each area given over the quarter. (C) How does this compare to the guidelines given to you?

Part-2

To get an idea of how much the advertising will cost if the product is sold nationally calculate the following:

(A) To launch the product, your company plans to run page monthly advertisement in Atlantic Monthly (for 1 year).

(B) For the normal campaign, you should plan to conduct an internet campaign. It cost you $50 per month for hosting, plus $25,000 to build the web site. To direct people to a website dedicated to the running shoe, you will use an internet advertising campaign. Use the average cost figure for internet advertising and a population of 6,649,900 males and 6,329,104 female (approximately the population that are regarded as dedicated runners in the USA). This campaign will.

(C) In addition, using the other magazines listed below, calculate the cost to run page advertisement for 5 months.

Magazine	Subscription
MEN'S HEALTH	1,659,505
SHAPE	1,633,442
SPORTS ILLUSTRATED	3,223,772
FITNESS	1,175,201

(D) How much would it cost to run an advertising campaign on television in the top twenty-five US markets for one year (refer to handout for costs and population)?

Part-3

(A) Compare the costs of the various forms of advertising above, address which one is best for your particular situation, and why? Then total these costs and provide an advertising budget. (B) what costs are missing from the internet campaign?