Question

Decision 1: Marketing - Advertising Placement Amanda has a yearly advertising and promotions budget of $45,000. Her goal is to maximize the reach (the number of customers that see her company's ads or other marketing efforts). She is considering a mix of placing ads on art websites and in printed art magazines, as well as using targeted social media ad placements and appearances at art tradeshows. She wants to make sure that the company has an online presence, so would like to see at least 110 ads placed in any combination of websites and social media per year. However, she has data that suggests that if she advertises on the websites more than once per week she will be wasting money. There are seven art tradeshows that the company could attend, but Amanda feels it is mandatory to attend at least the three most popular tradeshows. There are three major art magazines, each published monthly, that Amanda would like to advertise in. She could advertise in each of these once per month but would be comfortable reducing the frequency to a minimum of once every three months in each magazine and rotating the placements between the magazines. The reach and cost of each type of ad placement or event is shown below:

Art Websites Social Media Art Tradeshows. Print Magazine Ads

Reach (number of people) 14000 12,000 5,000 10,000

Cost (dollars) 250 250 1,000 400

Recommend the appropriate mix of advertising and promotions for the company. Also comment on what would change if Amanda doubled her advertising and promotions budget. Estimate the increased reach.