The Chamber of Commerce periodically sponsors public service seminars and progra
ID: 2475936 • Letter: T
Question
The 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 newspaper. Audience estimates, costs, and maximum media usage limitations are as shown:
To ensure a balanced use of advertising media, radio advertisements must not exceed 45% of the total number of advertisements authorized. In addition, television should account for at least 15% of the total number of advertisements authorized.
Constraint Television Radio Newspaper Audience per advertisement 140,000 18,000 30,000 Cost per advertisement $1,500 $200 $550 Maximum media usage 15 19 12Explanation / Answer
Audience per advertisement Cost per advertisement Audience per $ spent Max media usage Television 140000 1500 93 15 Radio 18000 200 90 19 Newspaper 30000 550 55 12 a) We observe that Television covers maximum audience per $ spent on it, So we will use Television to full extent and then remaining budget will be used to advertise on radio Order of preference is No. of commercial's Cost per advt. Total cost % to total number of advertisements 1) Televison( Maximum) 15 1500 22500 65% 2) Radio 8 200 1600 35% 3) Newspaper 0 0 0 23 24100 Total Audience reached No. of commercial's Audience per commercial Total Audience Televison 15 140000 2100000 Radio 8 18000 144000 Total Audience reached 2244000 b) If additional 100 Was issued as budget , Nothing can be added as cost of adding 1 more radio ad will be 200 which is more then increase in budget If proportion was to be allowed then it can be said as = $ 100 x Audience per $ spent on radiio = 100 x 90 , =9000