Question
PLATFORM Media Weight per Ad Potential Students per Ad Price per Ad Satellite Radio 94.2 7000 $9,500 Social Media 56.3 3200 $4,000 Music Streaming 3.9
PLATFORM | Media Weight per Ad | Potential Students per Ad | Price per Ad |
Satellite Radio | 94.2 | 7000 | $9,500 |
Social Media | 56.3 | 3200 | $4,000 |
Music Streaming | 3.9 | 600 | $1,000 |
For Satellite Radio, GBR believes that the media weight of 94.2 and 7000 potential new students per ad were applicable to the first 18 satellite radio ads. After 18 ads, these values are reduced to a media weight of 52.4 and approximately 3800 potential new students reached.
For Social Media ads, GBR believes that the media weight of 56.3 and 3200 potential new students per ad were applicable to the first 33 social media ads. After 33 ads, these values are reduced to a media weight of 36.1 and approximately 2000 potential new students reached.
For Music Streaming Services ads, GBR believes that the media weight of 3.9 and 600 potential new students per ad were applicable to the first 40 music streaming ads. After 40 ads, these values are reduced to a media weight of 1.8 and approximately 250 potential new students reached.
Based on the recommendation of GRB, Montvale State University has decided to focus on maximizing the media weight across all platforms in deciding how to best allocate the marketing budget.
However, Montvale State University is insisting that the marketing campaign must reach at least 250,000 potential new students. To ensure that all of the digital platforms are considered in the campaign, Montvale State University has proposed the following additional requirements:
Use at least twice as many Social Media advertisements as Satellite Radio advertisementsUse no more than 20 Satellite Radio advertisements.
The Satellite Radio budget should be at least $160,000
The Social Media advertising budget should not exceed $200,000
The budget allocated to the Streaming Music Services must be at least $30,000
Provide a recommendation as to how the $375,000 advertising budget should be allocated among the choices. Develop a linear programming model that can be used to determine the advertising budget allocation for Montvale State University
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