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Question 7. The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising
Question 7. The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown. Constraint Audience per advertisement Cost per advertisement Maximum media usage Television 100,000 $2000 10 Radio 18,000 $300 Online 40,000 $600 10 20 a. To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. If the promotional budget is limited to $18,200, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media, and what is the total audience reached? For solution, use Excel Solver and provide the screenshots of results from Excel. b. By how much would audience contact increase if an extra $100 were allocated to the promotional budget? Let T= number of television spot advertisements R=number of radio advertisements O= number of online advertisements
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