Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marketing Cost/Effectiveness Report from Ad Agency Type of Advertisement Exposure Level New Customers per Ad Cost per Ad TV 2 8,000 20,000 TV 1 1
Marketing Cost/Effectiveness Report from Ad Agency | |||
Type of Advertisement | Exposure Level | New Customers per Ad | Cost per Ad |
TV | 2 | 8,000 | 20,000 |
TV1 | 1 | 3,000 | 20,000 |
Radio | 2 | 4,000 | 6,000 |
Radio2 | 1 | 2,400 | 6,000 |
Online | 2 | 2,000 | 2,000 |
Online3 | 1 | 1,600 | 2,000 |
Notes: | |||
1. TV ads lose effective over time, exposure level drop from 2 to 1 after a maximum of 10 ads | |||
2. Radio ads lose effectiveness over time, exposure level drops from 2 to 1 after a maximum of 15 ads | |||
3. Online ads lose effectiveness over time, exposure level drops from 2 to 1 after a maximum of 20 ads |
The owner of Steel City has hired you to get these two tasks back on track after the abrupt departure of the manager in charge.Specifically, the owner has two requests:
- The owner wants to maximize total exposure across all types of advertisements (TV, Radio, and Online). How many of each type of ad should be purchased? How many potential customers will be reached? What is the effect of decreasing the advertising budget by 20%?You must document each step you take to solve the problem! The following guidelines must be followed when selecting the type of ads:
- The total advertising budget is $558,000
- Total exposure must be at least 200,000 customers
- Radio ads must be more numerous than TV ads. Use at least twice as many radio as TV ads
- TV ads are limited. Use no more 20 TV ads.
- The amount spent on TV ads should be at least $280,000
- The amount spent on radio ads should be less than $198,000
- The amount spent on online ads should be at least $60,000
Your answers MUST correctly specify a linear program, including objectives and constraints, to find the optimal solution; Linear program has only minor errors; handled ambiguity and offered feedback on the client's request; attempted to find anoptimal solution and described it
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started