Jerry's Theatrics marketing department is running an advertising campaign. The budget that has been given to them is $300,000. After analyzing the market and choosing a television, radio station, and online provider, the following information is determined. The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers. At this point, there is concern that the data concerning exposure and reach were only applicable to the first few ads in each medium. For television, the exposure rating of 90 and the 6000 new customers reached per ad is only reliable for the first 8 television ads. After 8 ads, the benefit are expected to decline. For planning purposes, it is recommended to reduce the exposure rating to 55 and the estimate of the potential new customers reached to 2000 for any television ads beyond 8 . For radio ads, the data are reliable up to a maximum of 13 ads. Beyond 13 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1500 per ad. Similarly, for online ads, the data are reliable up to a maximum of 20 ads; the exposure rating declines to 10 and the potential number of new customers reached declines to 1000 for additional ads. The objective of the advertising campaign is to maximize the exposure rating. Because of management's concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance the advertising campaign and make use of all advertising media, the management team also adopted the following guidelines: - Use at least twice as many radio advertisements as television advertisements. - Use no more than 60 online advertisements. - The television budget should be at least $100,000. - The radio advertising budget is restricted to a maximum of $95,000. - The online budget is to be at least $40,000. Jerry's Theatrics marketing department is running an advertising campaign. The budget that has been given to them is $300,000. After analyzing the market and choosing a television, radio station, and online provider, the following information is determined. The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers. At this point, there is concern that the data concerning exposure and reach were only applicable to the first few ads in each medium. For television, the exposure rating of 90 and the 6000 new customers reached per ad is only reliable for the first 8 television ads. After 8 ads, the benefit are expected to decline. For planning purposes, it is recommended to reduce the exposure rating to 55 and the estimate of the potential new customers reached to 2000 for any television ads beyond 8 . For radio ads, the data are reliable up to a maximum of 13 ads. Beyond 13 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1500 per ad. Similarly, for online ads, the data are reliable up to a maximum of 20 ads; the exposure rating declines to 10 and the potential number of new customers reached declines to 1000 for additional ads. The objective of the advertising campaign is to maximize the exposure rating. Because of management's concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance the advertising campaign and make use of all advertising media, the management team also adopted the following guidelines: - Use at least twice as many radio advertisements as television advertisements. - Use no more than 60 online advertisements. - The television budget should be at least $100,000. - The radio advertising budget is restricted to a maximum of $95,000. - The online budget is to be at least $40,000
